Is NASDAQ:QFIN a Fit for high Growth Investing Strategies?

QIFU TECHNOLOGY INC (NASDAQ:QFIN) has been identified as a Technical Breakout Setup Pattern by our stock screener. This pattern typically occurs when a stock takes a pause after a significant rise, indicating the possibility of a continuation in the trend. While it's impossible to predict with certainty, it might be beneficial to monitor NASDAQ:QFIN.

Technical Analysis Observations

ChartMill assigns a Technical Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple technical indicators and properties.

Overall QFIN gets a technical rating of 10 out of 10. 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!
• When comparing the yearly performance of all stocks, we notice that QFIN is one of the better performing stocks in the market, outperforming 96% of all stocks. On top of that, QFIN also shows a nice and consistent pattern of rising prices.
• QFIN is one of the better performing stocks in the Consumer Finance industry, it outperforms 96% of 52 stocks in the same industry.
• QFIN is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• QFIN is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.

Check the latest full technical report of QFIN for a complete technical analysis.

Why is NASDAQ:QFIN a setup?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NASDAQ:QFIN this score is currently 8:

Besides having an excellent technical rating, QFIN 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.

Looking into the high growth metrics of QIFU TECHNOLOGY INC

• 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 by analysts was adjusted by 70.67%, reflecting the evolving market expectations for the company's EPS growth.
• 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
• The earnings per share (EPS) growth of QIFU TECHNOLOGY INC are accelerating: the current Q2Q growth of 71.53% is above the previous year Q2Q growth of 11.11%. Earnings momentum and acceleration are key for high growth systems.
• 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.
• The free cash flow (FCF) of QIFU TECHNOLOGY INC has seen steady growth over the past year, indicating enhanced cash flow generation and financial health. This trend underscores the company's effective capital management and its ability to generate sustainable cash flows.
• With a favorable Return on Equity (ROE) of 23.9%, QIFU TECHNOLOGY INC demonstrates its ability to deliver attractive returns for shareholders. This metric highlights the company's effective management of assets and its profitability.
• With a current Debt-to-Equity ratio at 0.05, QIFU TECHNOLOGY INC showcases its disciplined capital structure. The company's prudent management of debt obligations contributes to its financial stability and long-term sustainability.
• With 70.81% of the total shares held by institutional investors, QIFU TECHNOLOGY INC showcases a healthy distribution of ownership. This suggests a mix of institutional and retail investors, fostering a dynamic market for the stock.
• With a track record of beating EPS estimates 3 times in the last 4 quarters, QIFU TECHNOLOGY INC showcases its consistent ability to deliver earnings surprises. This reflects the company's strong execution and its competitive position in the market.
• QIFU TECHNOLOGY INC has exhibited strong Relative Strength(RS) in recent periods, with a current 96.21 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.

Our High Growth Momentum Breakout screen will find you more ideas suited for high growth momentum breakouts.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.