I’ve been sending loud-and-clear signals on China-based electric vehicle manufacturer Li Auto (NASDAQ:LI) this year, and I’m only getting more bullish now. I predict higher prices for LI stock, especially with an upcoming data release. Bullish catalysts for Li Auto include stimulus programs in China and the company’s autonomous driving chip deal with Nvidia (NASDAQ:NVDA).
Plus, Li Auto is preparing to launch its flagship multi-purpose vehicle, known as the Li MEGA, on March 1. Yet, March 1 isn’t the only date you need to mark on your calendar. Indeed, February could be Li Auto’s most consequential month of 2024, and it’s not too late to buy LI stock in anticipation of a positive surprise.
An Amazing January for Li Auto
January 2024 is now in the history books, but it was an unforgettable month for Li Auto. After all, who could possibly forget a month in which Li Auto literally doubled its vehicle deliveries?
More specifically, Li Auto delivered 31,165 vehicles in January of this year. This represents 105.8% growth when compared to January 2023. Li Auto recorded 664,529 cumulative vehicle deliveries at the end of January – not too shabby, you must admit.
Another positive sign for Li Auto is that the company, according to a South China Morning Post report, has been distributing “fat bonuses” to some workers for exceeding the company’s 2023 sales target. Li Auto had established a 300,000-vehicle sales target for 2023, but actually sold 376,030 vehicles.
Now, I’m not saying that you should buy LI stock just because Li Auto is handing out “fat bonuses.” I’m highlighting signs of a financially and operationally healthy company.
This Day Will Be Huge for LI Stock Traders
So far, I’ve laid out the bullish argument in favor of Li Auto stock. However, there’s also an argument for buying shares today instead of waiting and hesitating.
Or at least, consider buying shares before Feb. 26. That’s when Li Auto is set to release its results for 2023’s fourth quarter and the full year.
LI stock has been in a general downtrend since last summer, so Feb. 26 could mark a major turning point. Check out Li Auto’s quarterly EPS track record, and you’ll find that the automaker has several EPS beats in a row and has also grown its EPS over time.
This will be Li Auto’s chance to deliver another Street beat as well as another quarter of sequential EPS growth. Besides, Li Auto really shone in December, delivering 50,353 vehicles, up 137.1% year over year. So, why shouldn’t the fourth-quarter report be a blockbuster for Li Auto?
LI Stock Outlook: It’s About to Pop Off
In case you couldn’t tell, my LI stock outlook is definitely bullish in the near term. With Li Auto’s quarterly report set to be released on Feb. 26, investors should prepare for a blastoff.
The long-term outlook is also highly favorable for Li Auto stock. You’ve seen the company’s vehicle-delivery growth and track record of EPS beats. Hence, today is the best day to start or add to a confident share position in Li Auto.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
