Li Auto

What it does: Li Auto is a Beijing-based carmaker specializing in extended-range electric vehicles (EREVs).

By James Fox. Li Auto (NASDAQ:LI) surged in the early months of 2024 but has since plummeted. The selloff can be traced to the unsuccessful launch of its first full-battery electric vehicle (EV) and poor Q1 deliveries. 

The failure of the Li Mega (the first full-battery EV) is a cause for concern, and the company has seemingly shelved some of its EV plans.

However, with its focus on EREVs – essentially hybrids with very long range – the company continues to deliver impressive volume growth, up 38.4% year to date. 

It also boasts the strongest margins in China’s new energy vehicle (NEV) market, trumping much larger peers like Tesla and BYD. 

Interestingly for investors, its stock is much cheaper than Tesla and modestly cheaper than BYD. The company trades at 16.8 times forward earnings, but forecasts suggest earnings will double over the next two years.

Li is also less likely to be impacted by tariffs and trade wars. The Beijing firm appears to be set on entering the MENA market as it starts to export. 

James Fox owns shares in Li Auto.

Nvidia

What it does: Develops and manufactures GPUs and chip systems for use in data centres, gaming, AI, and robotics.

By Mark David Hartley. The recent move into building its own AI computer chips means Tesla could soon be competing with Nvidia (NASDAQ: NVDA). While both companies have enjoyed impressive growth in the past five years, I think Nvidia will outpace Tesla in the next five. As Tesla’s car business faces competition, it appears to be branching into other sectors. The lack of focus on a single sector could cost its bottom line. 

Nvidia remains a market leader in its niche and its closest competitors, Broadcom and AMD, lag behind the company growth-wise. Moreover, Nvidia is the supplier of choice for tech giants like Meta and Microsoft. Tesla may find a limited market for its AI chips beyond its own automated products.

Both are overvalued but Nvidia’s price-to-earnings growth (PEG) ratio of 2.5 is lower than Tesla’s 3.6. It’s also forecast to grow at a rate of 22% per year, compared to Tesla’s 16%.

Mark David Hartley owns shares in AMD.

Smith & Nephew

What it does: Smith & Nephewis listed on the FTSE 100 and is a provider of medical technologies and treatments.

By Royston Wild. As sales of his Tesla electric vehicles stall, chief executive Elon Musk is doubling down on robotics to get the top line moving again. He hopes his Optimus humanoid robots will begin rolling off the production lines next year.

This isn’t tempting me to buy Tesla shares, though. Not only do troubles at its core carmaking division seem to be intensifying. Musk’s robot dreams have already suffered some setbacks (they were originally scheduled to be in Tesla’s factories by the end of 2024).

I think Smith & Nephew (LSE:SN.) could be a better stock to buy today. It’s primarily known for its joint replacement systems and work in wound care and sports medicine. However, it’s also investing heavily in robotics, and its CORI surgical system (used for knee operations) is a market leader.

CORI sales hit record highs in the second quarter as new product lines and capabilities were added to the platform. This could be a significant source of earnings growth as demand for medical robotics systems takes off.

Analysts at Grand View Research think this tech segment will rise at a compound annual growth rate of 16.6% between now and 2030. Smith & Nephew could be a top stock to capitalise on this.

Royston Wild does not own shares in Smith & Nephew or Tesla.

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Like any investor, I always want the best investment opportunities for my ISA. And one company I’ve been following very closely is Li Auto (NASDAQ:LI).

The new energy vehicle (NEV) stock, which still holds so much promise, has slumped in recent months amid an industry slowdown.

But I see this as a buying opportunity. It’s a diamond in the rough.

Analysts are bullish

As I often mention, if we’re trying to establish how much a company should be worth, it can pay us to start by looking at the average share price target. This is the consensus of Wall Street and City analysts covering the stock. Sometimes they get it wrong, but it’s a great starting point.

Li Auto is perhaps the most undervalued stock I’ve come across, according to its share price targets. In fact, the current share price of $26.4 is 84% below the average target. That’s really interesting.

The stock currently has 19 ‘buy’ ratings, five ‘outperform’ ratings, and two ‘hold’ ratings. Morgan Stanley has a target of $65 on the stock. That would represent a massive premium versus the current position.

A tough few months

Li Auto stock surged to around $46 a share in late February, but it came crashing down shortly after. The reason for this was its vehicle delivery figures.

The company, like its peers, reports how many vehicles it delivers each month. This can add to volatility as it’s reporting new data more frequently than most companies.

In February, Li reported that it had delivered 20,251 vehicles. That was up 21.8% over last year, but down from 31,165 in January and 50,353 in December. Deliveries picked up a little in March and April, but it’s still been a slow start to the year.

The Chinese firm had hoped to deliver 800,000 vehicles in 2024, but it now expects to sell between 560,000 and 640,000.

It’s not a sprint

Li Auto hasn’t given too much in the way of an explanation for the poor start to the year, but other companies are in the same driving seat.

However, it seems like its first battery electric vehicle (BEV) has been something of a letdown.

The Li Mega might be crammed full of tech and can be fully charged in just 12 minutes, but it’s not an attractive car. Social media’s been keen to point this out, with the company’s CEO condemning those who said it looks like a hearse.

Nonetheless, this is just one model. I certainly believe the company will come back stronger, and it has a host of new releases this year. There’s one big thing in Li Auto’s favour as well. It’s already profit-making, and most of its peers, with the exception of Tesla, aren’t.

Moreover, it’s not expensive considering its commanding position within a growing market. Li Auto’s currently trading at just 14.3 times forward earnings.

The slowdown’s a concern, but it’s a marathon, not a sprint. I’m confident Li will deliver for investors.

The post 1 diamond in the rough I’ve added to my Stocks and Shares ISA to build wealth appeared first on The Motley Fool UK.

But if they don’t deliver the expected growth, these stocks come crashing down. As such, they carry more risk than mature investments.

So today, I’m talking about two attractively-priced growth stocks. Personally, I don’t think it’s that easy to find competitively-priced growth stocks in the current market. One reason for this is the buzz around artificial intelligence (AI) — it’s attracted a lot of money into stocks with anything to do with AI.

Growth stocks from China

Chinese companies, even those listed in the US, tend to trade at a discount to their international peers. Geopolitics is one reason for this as investors worry whether these Chinese companies could be punished by US-China trade wars. After all, the recently passed ‘Protecting Americans from Foreign Adversary Controlled Applications Act’ is an effective ban or forced sale of TikTok from its parent company ByteDance.

Likewise, investors are wary of Chinese accounting standards (CAS). These originated in a socialist era, focusing on state control rather than investor needs, and they can be less transparent than international investors are used to. On occasion, the figures have been outright manipulated.

Li Auto (NASDAQ:LI) and GigaCloud (NASDAQ:GCT) are two Chinese growth stocks I like, and they trade at huge premiums to their US peers. The discounts reflect the above reasons but, in my opinion, they’re far too cheap.

Meet Li and GigaCloud

Neither company operates in a highly-regulated space like tech and, as far as I know, aren’t recipients of state funding. If the US were to advance its trade programme against Chinese companies, I wouldn’t expect Li Auto or GigaCloud to be a target.

For context, Li Auto produces new energy vehicles (NEVs), and it’s the first of China’s NEV manufacturers to turn a profit. It reached profitability by focusing on Extended Range Electric Vehicles (EREVs — essentially hybrids), and is now bringing out a range of battery electric vehicles (BEVs), which have impressive range and charging times.

GigaCloud doesn’t operate in the cloud space. It connects furniture manufacturers in China with end markets in North America and Europe. Concerns that its operations had been overstated were recently relaxed after an investment researcher conducted an interview with the CEO.

Growth at a discount

Li and GigaCloud offer access to faster-growing companies at a discount to their American peers.

Li Auto’s stock currently trades at 14.6 times earnings. For context, this is in line with the average price-to-earnings ratio of the FTSE 100 — which really doesn’t have much in the way of growth stocks.

Given the company’s growth trajectory, Li is phenomenally cheap. It’s prudent to be concerned by the slowdown in China’s EV sales, but I’m hopeful it’s just a blip. Earnings are expected to grow at 19.3% annually over the next three-to-five years.

Meanwhile, GigaCloud trades at 11.3 times forward earnings, with earnings expected to grow by around 20% annually over the medium term. GigaCloud may face headwinds because of maritime disruption but, currently, the Panama drought and Bab-el-Mandeb crises haven’t had a huge impact.

The post 2 dirt cheap growth stocks with heaps of potential! appeared first on The Motley Fool UK.

Either way, earning a second income can be easier than many of us anticipate, even if we’re starting with no money in the bank. The only caveat is that it won’t happen overnight. It takes time.

The strategy

If we’re starting investing with zero funds, we’ve got to make a commitment to contribute a proportion of our salary. Otherwise we’d simply have no way to fuel our investment journey. We could start with as little as £50 a month, but ideally I’d be putting more money to work. One reason for this is that we have to recognise the impact of fixed fees on our investments.

For example, I use Hargreaves Lansdown — which is the most expensive brokerage in terms of fixed fees. Its dealing fees start £11.95. As such, it would be hard to efficiently invest £50 a month. The answer is finding a cheaper brokerage — which may not be as good — or putting more money aside each month.

I’m also going to want to utilise my Stocks and Shares ISA. The ISA is an excellent vehicle for investing because it shields my gains from capital gains and tax. While this means I can withdraw a second income free of tax in the future, it also means my portfolio’s growth won’t be hampered by capital gains.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

And finally, I need to accept that I’m going to have to reinvest my gains for a number of years until my portfolio reaches a position where it could generate a sizeable second income. And the longer I leave it, the faster it grows… that’s compound returns.

Investing for growth

It may take a while for our monthly investments to turn into something much bigger. A key determinant of how long it takes is the success of our investments. We shouldn’t just invest in companies we like or because of a hunch. After all, we can lose money.

This is why I invest according to data. And one company I’ve recently invested in is Li Auto (NASDAQ:LI). Electric vehicle (EV) manufacturers have dipped in recent weeks following some rather unimpressive data from across the sector. However, I see this as an opportunity, and the data is strong.

The NEV (New Energy Vehicle) manufacturer is currently trading at 15.6 times forward earnings. Of course, that means it’s more expensive than most companies on the FTSE 100. That’s a risk, but this is a growth-focused business. Moving forward, that price-to-earnings ratio falls to 11.4 times in 2025 and nine times in 2026.

Sticking with the data, Li also has a price-to-earnings-to-growth ratio of 0.81. For me, this is one of the most important metrics, although I appreciate that it’s based on expected earnings, which can be wrong.

Moreover, Li has just made its first move into the fully electric space with the Li Mega. The vehicle hasn’t been overly well received due to its looks, but the tech, the range, the charging speeds, all point to future models (there will be three more EVs this year) that might be winners.

I believe Li Auto can supercharge my portfolio’s growth, in turn allowing me to generate a larger second income in the future.

The post No savings in the bank? Here’s how I’d turn surplus salary into a second income appeared first on The Motley Fool UK.

Buying the electrification dip

Shares in electric vehicle (EV) manufacturers have dipped in recent weeks following some less-than-impressive production figures. Li Auto is among them having delivered fewer vehicles than expected in February before lowering its Q1 deliveries estimate considerably.

Li then smashed its revised target, but the stock remained beaten down.

In short, Li, which has previously focused on EREVs (Extended Range Electric Vehicles which have combustion and electric engines), made an underwhelming entry into the BEV (Battery Electric Vehicle) market this year.

While there was lots of interest in the all-electric Li Mega, the vehicle’s appearance has drawn some criticism — the company didn’t respond positively to comments that it looked like a hearse.

However, Li’s rate of growth remains impressive and it recently became the first Chinese new energy vehicle manufacturer to pass the 700,000 deliveries mark. Its Q1 figures were also up 52.9% over 12 months. That’s still impressive, albeit slower than previous.

Moreover, while EV sales might be slowing — Tesla recently announced that annual sales had slowed sequentially — the electrification agenda’s here to stay.

From a valuations perspective, I find Li very attractive. It’s trading at 15.8 times earnings for 2024, 11.6 times earnings for 2025, and 9.1 times earnings for 2026. This is a huge discount versus Tesla, at 58.6 times earnings for 2024.

In turn, Li’s price-to-earnings-to-growth ratio currently sits at 0.8, inferring the firm could be significantly undervalued.

A new model for furniture shipping

GigaCloud Technology has nothing to do with cloud software as the name suggests. But it’s an interesting company that connects large package items (furniture) manufacturers in China with buyers and resellers in North America and Europe.

The business has proven very success as storing unsold furniture in the country of sale isn’t cheap. After all, furniture takes up a lot of space. So in this digital age, connecting producers with buyers provides a considerable efficiency gain.

The stock’s seen plenty of volatility, but the long-term trajectory’s upwards. It’s currently very cheap at 11 times forward earnings and offers best-in-class growth with earnings growing by 80.2% over the coming year. Moving forward, the price-to-earnings ratio falls to 8.8 times in 2025 and 7.4 times in 2026.

The company’s said it expects some macroeconomic headwinds in 2024, but that’s not enough to hold me back. GigaCloud is also looking to expand its Europe business following the success of its North American venture.

The post These growth stocks could supercharge my Stocks & Shares ISA appeared first on The Motley Fool UK.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

So what if I were starting a Stocks and Shares ISA today? Well, if possible, I’d want to build a diverse portfolio of stocks.

Although it’s worth considering how much our brokerages charge before build a portfolio. For example, given Hargreaves Lansdown‘s fee, I don’t tend to invest less than £1,000 in a single stock.

However, if I were investing through a cheaper platform, that would be less of a concern. In turn, this could make it easier to have diverse portfolio of holdings.

So here are two stocks I’d consider buying as part of a broad ISA portfolio.

GigaCloud Technology

GigaCloud Technology (NASDAQ:GCT) wouldn’t be the first stock on most people’s lists but I just can’t ignore the value here. The company essentially connects furniture manufacturers in China with markets in North America and Europe, and then provides the logistics solutions.

It’s a unique business that responds to the challenge of storing unsold large parcel goods in the country of sale — just think about how big a warehouse must be to hold 500 sofas. So GigaCloud connects the makers with buyers.

Investors might be concerned then about the impact of shipping disruption around the world, but GigaCloud recently said it’s having only a limited impact. That’s because its main markets are in North America.

On a valuation perspective, GigaCloud is trading at 11.1 times earnings for the year ahead, 9.5 times earnings for 2025, and 6.9 times for 2026. That’s incredibly cheap for a company on such an exciting growth trajectory.

Li Auto

Li Auto (NASDAQ:LI) is another Chinese company on my list. The stock fell last week after the company downgraded its own production figures for Q1, citing lower-than-expected order intake and operational issues with its star model Li Auto Mega.

This is a very different narrative to the one we’ve been getting over the last year during which Li blew all of its competitors away. In the fourth quarter alone, deliveries reached 131,805, reflecting a substantial 184.6% year-over-year surge.

But despite this dip in Q1, I have faith that the firm will come back stronger. It’s developed a great niche by focusing on EREV (Extended Range Electric Vehicles), and has just entered the BEV (Battery Electric Vehicle) market with an all-singing-all-dancing seven-seater.

It’s currently trading around 17 times forward earnings — that’s taking into account lower sales in Q1 — and has a price-to-earnings-to-growth ratio around 0.8. In the current market, it’s very cheap, and I’m excited to see what happens when it starts tapping overseas markets.

The post 2 stocks to kickstart a Stocks & Shares ISA appeared first on The Motley Fool UK.

Unsurprisingly, I prefer to invest in stocks and shares. And that’s because it’s possible start with nothing and to make sizeable returns just by investing wisely.

How it works

If I’m starting with no money at all, I need to open an investment account and make a commitment to invest a proportion of my salary each month. These days we can start with as little as £50 a month. And while that might not sounds like much, it can add up over time.

However, if I could afford a slightly larger figure, say £250 a month, I could really propel my wealth forward and achieve my passive income goals much sooner.

There are then two variables. The first is time. The longer I invest for, the faster my portfolio will grow and the more money I’ll have in the long run. As we can see below, the impact of compounding is huge.

And the second variable is the returns we can achieve. In other words, the success of our investments. A good investor may aim to see their investments grow by 10% a year. But we can do much better. For instance, my daughter’s portfolio is up 32% since I started it five months ago.

In the above example, I’ve been very bold. I’m aiming to average a 15% annualised return — as I do with my daughter’s portfolio. And here we can see that £250 a month has been transformed into £170,000 in just 15 years. If this were invested in stocks averaging an 8% yield, like Legal & General does today, I would be earnings £1,133 a month!

Achieving growth

The big question is how do I achieve an annualised return of 15%? Well, I need to start by recognising that if I invest poorly I could lose money. As such, I have a data-driven approach to help me invest wisely (although success isn’t guaranteed).

One company I’m continuing to invest in is Li Auto (NASDAQ:LI). The Chinese new energy vehicle (NEV) manufacturer is the first of its peer group to achieve profitability and its expected to grow earnings at more than 20% a year over the next three-to-five years.

That’s impressive growth, but it also means that Li’s all-important price-to-earnings-to-growth ratio is under one (0.8) indicating that the firm may be significantly undervalued.

Li has carved out a good chunk of the Chinese market and has earned itself a following through its focus on EREVs (Extended Range Electric Vehicles). The L7, L8, and L9, all have combustion engines and electric engines, providing some staggering ranges — in excess of 1,000km.

I’m wary that Chinese companies may struggle to make progress outside of China, however, I still think the future is bright for Li. It’s got sector-beating margins, and there’s a real buzz about the brand.

The post No money in the bank? Here’s how I’d aim for £1,113 of monthly passive income as quickly as possible appeared first on The Motley Fool UK.

And every year we can put up to £20,000 in an ISA investment account. Of course, there’s no obligation to max out our ISA contributions, and the vast majority of us won’t get near. But that doesn’t mean we can’t use this tax-free wrapper to create some serious wealth.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Starting with nothing

Millions of us in the UK don’t have a Stocks and Shares ISA, but getting started is simple. I can simply go to any major brokerage, like Hargreaves Lansdown, AJ Bell, or Interactive Investor, and open an account.

These days, we can start an investment account with almost nothing, and in some cases just a commitment, or direct debit, to contribute monthly. But, naturally, the more money I contribute, the quicker I’d be able to build wealth.

For example, if I were to maximise my ISA contributions, and add £833 a month into my portfolio, and actualise a return of 12%, it’d take me just 22 years to reach millionaire status.

Of course, most of us can’t afford £833 a month. So the less we contribute, the longer it’ll take to get there. But as time goes by, the pace of growth will increase as we earn interest on our interest.

An important variable

In the above example, I’ve suggested actualising an annualised return of 12%. That’s quite ambitious for novice investors, but it’s certainly possible if we make the right investment decisions. To add some context, my daughter’s ISA has grown 28% since I opened it four and a half months ago. Six of her seven investments are in the green.

Equally, if we make poor investment decisions, we could lose money. And losses can also compound. This is why it’s important we do plenty of research and make informed, data-driven decisions.

One such stock I like the look of in the relatively buoyant market is Li Auto (NASDAQ:LI). The Chinese automaker has very strong valuation metrics despite surging 77% over the past 12 months — most of that growth has come since the turn of the year.

Li is one of a few new energy vehicle manufacturers to have turned a profit, and it’s on an impressive trajectory. Its range of PHEV (plug-in hybrid electric vehicle) clearly hit the spot in China, with many buyers still wary about the ranges offered by pure EVs.

With profitability and strong brand reputation achieved, Li recently launched its first all-electric vehicle. Deliveries of the flagship MEGA Max, touted by Li as the fastest-charging mass-produced car, will begin on 11 March.

Some investors may understandably be concerned about Li’s prospects outside of China as carmakers could get caught up the crossfire of trade wars. But it’s worth remembering that China is a huge market itself.

WIth a price-to-earnings-to-growth ratio around 0.5, I think Li remains a bargain. It could help me achieve a 12% or higher average annual return.

The post How I’d aim to transform an empty Stocks & Shares ISA into £1m of wealth! appeared first on The Motley Fool UK.

Investing regularly

If I were starting anew tomorrow, there are lots of things I’d do differently. But there are also plenty of things I’d keep the same.

One thing I’d do the same is my use of the Stocks & Shares ISA. It’s a vitally important tool for UK-based investors, allowing us to shield our profits and dividends from tax.

If I were investing £10,000 a year, or £833 a month, I’d be well within the maximum annual ISA allowance. I’m permitted to put up to £20,000 a year in the ISA wrapper.

Investing regularly is also an excellent idea. It provides my portfolio with the capacity to continue growing, and even small contributions can add up over time.

It won’t happen overnight

I’ve also got to recognise that I won’t achieve my objectives over night. One of the most powerful forces when investing is compound returns. This is essentially what happens when I earn interest on my interest. As my capital grows, my capacity to earn grows.

The thing is, bad investment decisions can also compound. And if I make poor investment decisions, I’m likely to experience losses. It’s also worth remembering that if I lose 50%, I’ve got to go 100% just to get back to where I was.

What I’d do differently

I’ve been investing for over a decade, and looking back at it, I really didn’t have much of a strategy when I started. Nowadays, I’m much more data-driven, and this has helped me achieve some really strong returns.

One stock I’ve chosen through this data-driven approach is Li Auto (NASDAQ:LI). The company may be looking a little expensive on near-term metrics compared to UK-listed stocks — it currently trades at 21.2 times forward earnings.

However, Li Auto is on an impressive growth trajectory. Earnings are expected to more than double over the coming three years. As such, the forward price-to-earnings ratios are as follows: 2024, 21.2 times; 2025, 15.7 times; 2026, 12.2 times.

Moving forward, I’d expect this momentum to be sustained. My calculations suggest the all-important price-to-earnings-to-growth ratio sits around 0.5, indicating its still vastly undervalued.

Investors may be concerned about the health of the Chinese economy and the firm’s capacity to serve international markets. However, this hasn’t proven problematic to date. Li Auto’s focus on ultra-long range hybrid vehicles has also proven hugely popular among customers wary of limited electric car ranges.

But with battery technology improving, Li has just launched its MEGA Max, touted by Li as the fastest-charging mass-produced car. The prospects, in my opinion, are strong.

So how can Li help me earn £1,421 a month? Well, it’s about the rate of growth and having a big enough portfolio. Most novice investors would be thrilled with CAGR of 10%. And if I invested £10,000 a year at 10% CAGR, after a decade, my portfolio would be generating £1,421 a month.

The post Here’s how I’d invest £10,000 a year and aim for £1,421 of monthly passive income appeared first on The Motley Fool UK.

In 2023, we saw many high profile stocks more than doubled in value. Just take Nvidia or Rolls-Royce (LSE:RR) as examples.

And, of course, we want to identify the stocks that could do the same in 2024.

The problem is, that’s often easier said than done. However, here are three stocks I could see doubling in value in 2024.

Rolls-Royce

It’s happened once, and it could happen again. Rolls-Royce still has excellent earnings metrics despite surging more than 220% over the past 12 months.

Moving forward, analysts expect to see earnings per share grow by 67.8% annually over the next three to five years.

Yes, there’s a low start point — the company has only just returned to profit after the pandemic, which caused untold damage to the civil aviation sector — but the forecasts are incredibly strong.

Rolls’s defence and power systems have been performing nicely over the past three years, and that’s likely to continue.

Some may suggest that Rolls is too dependent on the civil aviation sector, and will point to the pandemic as proof. But these are exceptional circumstances.

With a price-to-earnings growth (PEG) ratio of 0.55, Rolls could be undervalued by as much as half.

Lloyds

Lloyds (LSE:LLOY) might seem like an unusual pick.

However, with interest rates due to start falling slowly and the UK set to avoid a recession in 2024, the worst case scenario appears to be off the cards. Nonetheless, I appreciate the UK and Lloyds aren’t out of the woods just yet.

However, this is a big deal for Lloyds as risk had been weighing heavily on the share price.

In turn, we could see the growth forecast improve. In fact, analysts are forecasting a compound annual growth rate of 11.3% over the next three to five years.

One factor aiding this could be the bank’s hedging strategy. By buying bonds now, Lloyds is likely to create an interest rate tailwind throughout the medium term.

In turn, this also leads to a PEG ratio of 0.55, once again inferring that the stock could be undervalued by half.

Li Auto

Li Auto (NASDAQ:LI) is among the cheapest stocks globally when adjusted for growth. The stock has a PEG ratio of just 0.04.

Having turned a profit in 2023, the EV manufacturer is expected to see substantial earnings per share growth across the medium term.

While I recognise there are concerns about the Chinese economy, the company has strong offering.

The L9 — the firm’s latest car — is an impressive vehicle. The SUV comes with two electric engines and one petrol, delivering 1,100 kilometres of range.

It’s also competitively priced considering management think it offers luxury to rival Bentley and Rolls-Royce (the carmaker).

The post 3 stocks to buy that could go 2x in 2024! appeared first on The Motley Fool UK.