Is QIFU TECHNOLOGY INC (NASDAQ:QFIN) suited for high growth investing?

QIFU TECHNOLOGY INC (NASDAQ:QFIN) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NASDAQ:QFIN.

Zooming in on the technicals.

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

We assign a technical rating of 10 out of 10 to QFIN. Both in the recent history as in the last year, QFIN has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The long and short term trends are both positive. This is looking good!
• Looking at the yearly performance, QFIN did better than 96% of all other stocks. We also observe that the gains produced by QFIN over the past year are nicely spread over this period.
• QFIN is part of the Consumer Finance industry. There are 52 other stocks in this industry. QFIN outperforms 86% of them.
• QFIN is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so QFIN is lagging the market slightly.
• In the last month QFIN has a been trading in the 29.15 - 38.69 range, which is quite wide. It is currently trading near the high of this range.

Our latest full technical report of QFIN contains the most current technical analsysis.

Why is NASDAQ:QFIN a setup?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:QFIN has a 7 as its setup rating:

Although QFIN has an excellent technical rating, the quality of the presented setup is not ideal at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

Why NASDAQ:QFIN may be interesting for high growth investors.

• The quarterly earnings of QIFU TECHNOLOGY INC have shown a 71.53% increase compared to the previous quarter, as revealed in the recent financial report. This growth signifies positive momentum in the company's financials, pointing towards a promising upward trend
• The average next Quarter EPS Estimate for QIFU TECHNOLOGY INC has experienced a 70.67% change in the last 3 months, reflecting evolving expectations by analysts regarding the company's EPS performance.
• In the most recent financial report, QIFU TECHNOLOGY INC reported a 71.53% increase in quarterly earnings compared to the previous quarter. This notable growth indicates positive momentum in the company's financials, suggesting an upward trend
• QIFU TECHNOLOGY INC shows accelerating EPS growth: when comparing the current Q2Q growth of 71.53% to the previous year Q2Q growth of 11.11%, we see the growth rate improving.
• QIFU TECHNOLOGY INC has shown positive growth in its operating margin over the past year, indicating improved operational efficiency. This growth highlights the company's ability to effectively manage costs and maximize profitability.
• With a favorable trend in its free cash flow (FCF) over the past year, QIFU TECHNOLOGY INC demonstrates its ability to generate robust cash flows and maintain financial stability. This growth reflects the company's focus on efficient capital allocation and cash management.
• QIFU TECHNOLOGY INC has a healthy Return on Equity(ROE) of 23.9%. This demonstrates the company's efficient utilization of capital and indicates its commitment to driving profitability.
• With a Debt-to-Equity ratio at 0.05, QIFU TECHNOLOGY INC showcases its prudent financial management. The company's balanced approach between debt and equity reflects its commitment to maintaining a stable capital structure.
• The ownership composition of QIFU TECHNOLOGY INC reflects a balanced investor ecosystem, with institutional shareholders owning 69.9%. This indicates a broader market participation and potential for increased trading liquidity.
• QIFU TECHNOLOGY INC has a strong history of beating EPS estimates 3 times in the last 4 quarters, signaling its ability to consistently exceed market expectations. This indicates the company's strong financial performance and its potential for creating shareholder value.
• QIFU TECHNOLOGY INC has exhibited strong Relative Strength(RS) in recent periods, with a current 96.33 rating. This indicates the stock's ability to outperform the broader market and reflects its competitive position. QIFU TECHNOLOGY INC shows promising potential for continued price momentum.

More high growth momentum breakout stocks can be found in our High Growth Momentum Breakout screen.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.