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Li Auto Inc. (NASDAQ: LI) Has Great Upside Potential

Li Auto Inc. (NASDAQ:LI) shares, rose in value on Wednesday, 05/24/23, with the stock price up by 0.28% to the previous day’s close as strong demand from buyers drove the stock to $28.82.

Actively observing the price movement in the last trading, the stock closed the session at $28.74, falling within a range of $28.20 and $29.73. The value of beta (5-year monthly) was 0.73. Referring to stock’s 52-week performance, its high was $41.49, and the low was $12.52. On the whole, LI has fluctuated by 30.82% over the past month.

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With the market capitalization of Li Auto Inc. currently standing at about $30.11 billion, investors are eagerly awaiting this quarter’s results, scheduled for Aug 14, 2023 – Aug 18, 2023. As a result, investors might want to see an improvement in the stock’s price before the company announces its earnings report. Analysts are projecting the company’s earnings per share (EPS) to be $0.12, which is expected to increase to $0.11 for fiscal year $0.34 and then to about $0.77 by fiscal year 2024. Data indicates that the EPS growth is expected to be 213.30% in 2024, while the next year’s EPS growth is forecast to be 126.50%.

Analysts have estimated the company’s revenue for the quarter at $3.41 billion, with a low estimate of $2.52 billion and a high estimate of $3.8 billion. According to the average forecast, sales growth in current quarter could jump up 181.20%, compared to the corresponding quarter of last year. Wall Street analysts also predicted that in 2024, the company’s y-o-y revenues would reach $14.12 billion, representing an increase of 115.60% from the revenues reported in the last year’s results.

Revisions could be a useful indicator to get insight on short-term price movement; so for the company, there were 1 upward and no downward review(s) in last seven days. We see that LI’s technical picture suggests that short-term indicators denote the stock is a 100% Buy on average. However, medium term indicators have put the stock in the category of 100% Buy while long term indicators on average have been pointing out that it is a 100% Buy.

The stock’s technical analysis shows that the PEG ratio is about 0, with the price of LI currently trading nearly 9.27% and 16.47% away from the simple moving averages for 20 and 50 days respectively. The Relative Strength Index (RSI, 14) currently indicates a reading of 63.98, while the 7-day volatility ratio is showing 3.59% which for the 30-day chart, stands at 3.75%. Furthermore, Li Auto Inc. (LI)’s average true range (ATR) is 1.16.

Data on historical trading for Li Auto Inc. (NASDAQ:LI) indicates that the trading volumes over the past 10 days have averaged 8.27 million and over the past 3 months, they’ve averaged 7.24 million. According to company’s latest data on outstanding shares, there are 979.17 million shares outstanding.

Nearly 0.04% of Li Auto Inc.’s shares belong to company insiders and institutional investors own 29.50% of the company’s shares. The data on short interest also indicates that stock shorts accounted for 27.81 million shares as on Apr 27, 2023, resulting in a short ratio of 4.7. According to the data, the short interest in Li Auto Inc. (LI) stood at 2.85% of shares outstanding as of Apr 27, 2023; the number of short shares registered in Mar 30, 2023 reached 35.28 million. The stock has risen by 41.27% since the beginning of the year, thereby showing the potential of a further growth. This could raise investors’ confidence to be optimistic about the LI stock heading into the next quarter.

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