Company Performance - Li Auto Inc. Sponsored ADR (LI) closed at $23.98, reflecting a +0.82% change from the previous day, underperforming the S&P 500's gain of 1.67% [1] - Over the past month, LI shares have decreased by 8.68%, compared to the Auto-Tires-Trucks sector's loss of 6.08% and the S&P 500's loss of 6.57% [1] Upcoming Earnings - The upcoming earnings release is anticipated, with Zacks Consensus Estimates projecting earnings of $1.38 per share and revenue of $23.97 billion, indicating a year-over-year change of 0% for earnings and +19.33% for revenue [2] Analyst Estimates - Recent changes to analyst estimates for LI are important as they reflect the evolving business landscape, with positive revisions indicating optimism about the company's outlook [3] Zacks Rank and Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks LI at 3 (Hold), with the consensus EPS estimate remaining unchanged over the last 30 days [5] - Historically, 1 ranked stocks have delivered an average annual return of +25% since 1988 [5] Valuation Metrics - Li Auto Inc. is currently trading at a Forward P/E ratio of 17.27, which is significantly higher than the industry average of 7.4, suggesting a premium valuation [6] - The company has a PEG ratio of 3.64, compared to the Automotive - Foreign industry's average PEG ratio of 1.24, indicating a higher expected earnings growth rate relative to its price [7] Industry Context - The Automotive - Foreign industry, part of the Auto-Tires-Trucks sector, holds a Zacks Industry Rank of 164, placing it in the bottom 34% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]