Two stocks to watch: Week 8, 2024


Exness Representative
Week eight is underway. Here are two stocks to monitor just days before their earnings. Putting the spotlight on Li Auto and Baidu.

Li Auto Inc.​

Li Auto Inc. (LI) saw its share price undergo significant volatility last quarter, with frequent gaps appearing on its chart. However, it managed to close the year with a positive gain of 3% for Q4. The company's earnings report for the fiscal quarter ending December 2023 is expected to be released on Monday, 26 February, before the market opens. The consensus EPS forecast is $0.29 (USD), compared to $0.04 in the same quarter of the previous year.

Li Auto has demonstrated considerable growth in deliveries, improved profitability, and efficiency. However, macroeconomic uncertainties in China and competitive pricing battles continue to present challenges. Despite the company's reasonable valuation relative to direct competitors, the macroeconomic environment in China, characterized by deflationary pressures and an oversupply of EV makers, creates uncertainty. As a result, the company currently struggles to attract significant investor interest.

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