Li AutoInc Stock Buy Hold or Sell Recommendation

LI
 Stock
  

USD 22.00  3.47  18.73%   

Allowing for the 90-day total investment horizon and your above-average risk tolerance, our recommendation regarding Li AutoInc is 'Cautious Hold'. Macroaxis provides Li AutoInc buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding LI positions. The advice algorithm takes into account all of Li AutoInc's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Li AutoInc's buy-and-hold perspective. Additionally, see Li AutoInc Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Li AutoInc and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Li AutoInc.

Execute Li AutoInc Buy or Sell Advice

The Li AutoInc recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Li AutoInc. Macroaxis does not own or have any residual interests in Li AutoInc or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Li AutoInc's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Li AutoIncBuy Li AutoInc
Cautious Hold

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

Details

Reporting Quality (M-Score)

Details
For the selected time horizon Li AutoInc has a Mean Deviation of 4.64, Standard Deviation of 6.12 and Variance of 37.46
Our advice module complements current analysts and expert consensus on Li AutoInc. It analyzes the company potential to grow using all fundamental, technical, and market related data available right now. To make sure Li AutoInc is not overpriced, please verify all Li AutoInc fundamentals, including its shares outstanding, ebitda, cash flow from operations, as well as the relationship between the price to book and total debt . Given that Li AutoInc has a number of shares shorted of 37.06 M, we recommend you to check Li AutoInc market performance and probability of bankruptcy to ensure the company can sustain itself in the future given your latest risk tolerance and investing horizon.

Li AutoInc Trading Alerts and Improvement Suggestions

Li AutoInc generated a negative expected return over the last 90 days
Li AutoInc has high historical volatility and very poor performance
The company generated the yearly revenue of 27.01 B. Annual Net Loss to common stockholders was (321.45 M) with gross profit of 5.76 B.

Li AutoInc Returns Distribution Density

The distribution of Li AutoInc's historical returns is an attempt to chart the uncertainty of Li AutoInc's future price movements. The chart of the probability distribution of Li AutoInc stock daily returns describes the distribution of returns around its average expected value. We use Li AutoInc price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Li AutoInc returns is essential to provide solid investment advice for Li AutoInc.
Mean Return-0.24Value At Risk-11.21
Potential Upside8.96Standard Deviation6.12
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Li AutoInc historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Li AutoInc Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Li AutoInc or Automobiles sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Li AutoInc's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Li AutoInc stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
-0.33
β
Beta against NYSE Composite1.32
σ
Overall volatility
6.26
Ir
Information ratio -0.05

Li AutoInc Volatility Alert

Li AutoInc is displaying above-average volatility over the selected time horizon. Investors should scrutinize Li AutoInc independently to ensure intended market timing strategies are aligned with expectations about Li AutoInc volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Li AutoInc's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Li AutoInc's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Li AutoInc Implied Volatility

Li AutoInc's implied volatility exposes the market's sentiment of Li AutoInc stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Li AutoInc's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Li AutoInc stock will not fluctuate a lot when Li AutoInc's options are near their expiration.

Li AutoInc Fundamentals Vs Peers

Comparing Li AutoInc's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Li AutoInc's direct or indirect competition across all of the common fundamentals between Li AutoInc and the related equities. This way, we can detect undervalued stocks with similar characteristics as Li AutoInc or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Li AutoInc's fundamental indicators could also be used in its relative valuation, which is a method of valuing Li AutoInc by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Li AutoInc to competition
FundamentalsLi AutoIncPeer Average
Return On Equity(0.0105) %(0.31) %
Return On Asset(0.0156) %(0.14) %
Profit Margin(0.0097) %(1.27) %
Operating Margin(0.0399) %(5.51) %
Current Valuation12.4 B16.62 B
Shares Outstanding975.75 M571.82 M
Shares Owned by Insiders0.036 %10.09 %
Shares Owned by Institutions27.20 %39.21 %
Number of Shares Shorted37.06 M4.71 M
Price to Book3.08 X9.51 X
Price to Sales0.49 X11.42 X
Revenue27.01 B9.43 B
Gross Profit5.76 B27.38 B
EBITDA(6.79 M)3.9 B
Net Income(321.45 M)570.98 M
Cash and Equivalents50.44 B2.7 B
Cash per Share52.18 X5.01 X
Total Debt5.96 B5.32 B
Debt to Equity0.25 %48.70 %
Current Ratio3.25 X2.16 X
Book Value Per Share43.81 X1.93 K
Cash Flow from Operations8.34 B971.22 M
Short Ratio2.30 X4.00 X
Earnings Per Share0.01 X3.12 X
Price to Earnings To Growth(68.29) X4.89 X
Target Price37.52
Number of Employees15.16 K18.84 K
Beta0.25-0.15
Market Capitalization18.08 B19.03 B
Total Asset61.85 B29.47 B
Z Score0.68.72
Net Asset61.85 B

About Li AutoInc Buy or Sell Advice

When is the right time to buy or sell Li AutoInc? Buying financial instruments such as Li AutoInc Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having Li AutoInc in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Hybrid Mix Theme
Funds or Etfs that are made of portfolios of stocks, bonds, or cash instruments with different maturity horizons and characteristics. The Hybrid Mix theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Hybrid Mix Theme or any other thematic opportunities.
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Additionally, see Li AutoInc Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

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When running Li AutoInc price analysis, check to measure Li AutoInc's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Li AutoInc is operating at the current time. Most of Li AutoInc's value examination focuses on studying past and present price action to predict the probability of Li AutoInc's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Li AutoInc's price. Additionally, you may evaluate how the addition of Li AutoInc to your portfolios can decrease your overall portfolio volatility.
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Is Li AutoInc's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Li AutoInc. If investors know Li AutoInc will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Li AutoInc listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
1.38
Market Capitalization
18.1 B
Quarterly Revenue Growth YOY
0.73
Return On Assets
(0.0156) 
Return On Equity
(0.0105) 
The market value of Li AutoInc is measured differently than its book value, which is the value of Li AutoInc that is recorded on the company's balance sheet. Investors also form their own opinion of Li AutoInc's value that differs from its market value or its book value, called intrinsic value, which is Li AutoInc's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Li AutoInc's market value can be influenced by many factors that don't directly affect Li AutoInc's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Li AutoInc's value and its price as these two are different measures arrived at by different means. Investors typically determine Li AutoInc value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Li AutoInc's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.