Li Auto Stock Plummets 31% In Recent 21 Sessions – Is It A Buy Or Sell?

(VIANEWS) – Li Auto (NASDAQ: LI) shares have experienced a 31.77% decrease over 21 sessions, from EUR46.21 on 2024-02-27 to EUR31.53 at 22:54 EST on Thursday night despite NASDAQ’s 0.2% gain to EUR16,401.84 despite Li Auto closing 33.38% below its 52-week high of EUR47.33

About Li Auto

Li Auto Inc. is a top Chinese energy vehicle company, specializing in the design, development and manufacturing of premium smart electric vehicles. Their product offerings include MPVs and SUVs that provide innovative transportation solutions in China. Selling their products via both online and offline channels as well as sales after-sales management services as well as technology development capabilities are among their services provided to their customers in China. Established in 2015 with headquarters located in Beijing; Li Auto has quickly established themselves as a major player within their market since.

Yearly Analysis

Li Auto’s stock is currently underperforming relative to its 52-week high; however, it has outshone its 52-week low. Anticipated sales growth for this year stands at 70.8% which suggests strong demand for their products or services from their target audience.

Li Auto has achieved an EBITDA score of 9.09, indicating it is making a profit after accounting for interest, taxes, depreciation and amortization expenses. This indicates it may have healthy finances that are suitable for growth.

Overall, Li Auto appears to be a company with strong growth potential; however, investors should carefully consider other aspects such as competition, market trends and financial performance before making any investment decisions.

Technical Analysis

Li Auto’s stock is currently trading below both its 50-day and 200-day moving averages, indicating a potential downward trend. However, volume trading activity for Li Auto remains significantly above its average levels indicating an increased level of trading activity.

Li Auto’s intraday volatility has been relatively low over the last week, month, and quarter – an average of 3.70%, 0.28%, and 3.35% respectively – with its highest amplitude reaching 6.18% for week one, 4.70% for month one and 3.35% for quarter one respectively.

Li Auto’s stock currently falls into an oversold status with an oscillator rating of less than 20, suggesting it may be undervalued and due for a rebound in price. However, investors should remember that stock prices can be affected by many different factors and shouldn’t solely use this as the basis for their investment decisions.

Quarter Analysis

Li Auto has experienced impressive sales growth over the last two quarters, experiencing a 74.4% sales increase for this quarter and an expected 65% jump for next quarter – growth that’s predicted to continue as its estimates for each are 283.3% and 60%, respectively. Furthermore, year-on-year quarterly revenue growth was even stronger, increasing by 136% year-on-year to reach an estimated annual revenue total of 123.85B – suggesting it may provide promising investment prospects within the automotive industry; as with any investment decision it’s wise to carefully consider various aspects before making your final decision – it might just do!

Equity Analysis

Based on the provided data, here’s an easy-to-understand analysis of Li Auto’s stock performance:

Earnings Per Share (EPS): Li Auto currently boasts a trailing twelve month EPS of EUR1.54, representing its earnings per share over the last year.

PE Ratio: Li Auto boasts a trailing twelve months price to earnings ratio of 20.47, suggesting investors are willing to shell out EUR20.47 for every euro in annual earnings generated. A higher PE ratio may reflect investor optimism about Li Auto’s future growth potential.

Return on Equity (ROE): Li Auto’s return on equity over the past twelve months stands at 22.33%, meaning that they generated profits worth EUR22.33 for every EUR100 in shareholder equity invested. A higher ROE could indicate more efficient profit generation which may make Li Auto attractive to investors.

Li Auto has demonstrated both profitability and efficiency over the past year as evidenced by its EPS, PE ratio, and ROE figures. Investors should carefully consider other factors, including growth prospects, market conditions, and industry trends when making investment decisions.

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