Why NASDAQ:QFIN Is a Promising High-Growth Stock in the Midst of Consolidation.

In this article we will dive into QIFU TECHNOLOGY INC (NASDAQ:QFIN) as a possible candidate for growth investing. Investors should always do their own research, but we noticed QIFU TECHNOLOGY INC showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

Understanding NASDAQ:QFIN's Growth

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:QFIN was assigned a score of 8 for growth:

• The Earnings Per Share has grown by an impressive 40.63% over the past year.
• The Revenue has grown by 9.41% in the past year. This is quite good.
• QFIN shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 29.65% yearly.
• QFIN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.08% yearly.
• QFIN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.18% yearly.
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

How We Gauge Health for NASDAQ:QFIN

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:QFIN was assigned a score of 7 for health:

• The Debt to FCF ratio of QFIN is 0.12, which is an excellent value as it means it would take QFIN, only 0.12 years of fcf income to pay off all of its debts.
• QFIN's Debt to FCF ratio of 0.12 is amongst the best of the industry. QFIN outperforms 94.23% of its industry peers.
• A Debt/Equity ratio of 0.05 indicates that QFIN is not too dependend on debt financing.
• The Debt to Equity ratio of QFIN (0.05) is better than 88.46% of its industry peers.
• A Current Ratio of 2.56 indicates that QFIN has no problem at all paying its short term obligations.
• QFIN's Current ratio of 2.56 is fine compared to the rest of the industry. QFIN outperforms 75.00% of its industry peers.
• QFIN has a Quick Ratio of 2.56. This indicates that QFIN is financially healthy and has no problem in meeting its short term obligations.
• Looking at the Quick ratio, with a value of 2.56, QFIN is in the better half of the industry, outperforming 76.92% of the companies in the same industry.

Looking at the Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:QFIN has achieved a 8:

• QFIN's Return On Assets of 11.62% is amongst the best of the industry. QFIN outperforms 92.31% of its industry peers.
• Looking at the Return On Equity, with a value of 23.90%, QFIN belongs to the top of the industry, outperforming 86.54% of the companies in the same industry.
• QFIN's Return On Invested Capital of 18.00% is amongst the best of the industry. QFIN outperforms 96.15% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for QFIN is significantly above the industry average of 7.32%.
• QFIN has a Profit Margin of 31.78%. This is amongst the best in the industry. QFIN outperforms 92.31% of its industry peers.
• With an excellent Operating Margin value of 40.27%, QFIN belongs to the best of the industry, outperforming 98.08% of the companies in the same industry.
• With an excellent Gross Margin value of 83.13%, QFIN belongs to the best of the industry, outperforming 80.77% of the companies in the same industry.

How does the Setup look for NASDAQ:QFIN

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:QFIN has a 8 as its setup rating, indicating its current consolidation status.

QFIN has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 37.99, a Stop Loss order could be placed below this zone.

More Strong Growth stocks can be found in our Strong Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of QFIN

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.