We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
360 DigiTech, Inc. Sponsored ADR (QFIN) Hits Fresh High: Is There Still Room to Run?
Read MoreHide Full Article
Shares of 360 DigiTech, Inc. Sponsored (QFIN - Free Report) have been strong performers lately, with the stock up 64.1% over the past month. The stock hit a new 52-week high of $45 in the previous session. 360 DigiTech, Inc. Sponsored has gained 273.6% since the start of the year compared to the 1.4% move for the Zacks Business Services sector and the 6.8% return for the Zacks Technology Services industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 27, 2021, 360 DigiTech, Inc. Sponsored ADR reported EPS of $1.34 versus consensus estimate of $0.78.
For the current fiscal year, 360 DigiTech, Inc. Sponsored ADR is expected to post earnings of $4.56 per share on $2.4 billion in revenues. This represents a 20% change in EPS on a 21.27% change in revenues. For the next fiscal year, the company is expected to earn $5.39 per share on $2.68 billion in revenues. This represents a year-over-year change of 18.2% and 11.79%, respectively.
Valuation Metrics
360 DigiTech, Inc. Sponsored ADR may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
360 DigiTech, Inc. Sponsored ADR has a Value Score of A. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 9.7X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 12.4X versus its peer group's average of 24.4X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, 360 DigiTech, Inc. Sponsored ADR currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if 360 DigiTech, Inc. Sponsored ADR fits the bill. Thus, it seems as though 360 DigiTech, Inc. Sponsored ADR shares could still be poised for more gains ahead.
How Does 360 DigiTech, Inc. Sponsored ADR Stack Up to the Competition?
Shares of 360 DigiTech, Inc. Sponsored ADR have been rising, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also solid potential picks, including AstroNova (ALOT - Free Report) , Seagate Technology Holdings (STX - Free Report) , and ManpowerGroup (MAN - Free Report) , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
However, it is worth noting that the Zacks Industry Rank for this group is in the bottom half of the ranking, so it isn't all good news for 360 DigiTech, Inc. Sponsored ADR. Still, the fundamentals for 360 DigiTech, Inc. Sponsored ADR are promising, and it still has potential despite being at a 52-week high.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
360 DigiTech, Inc. Sponsored ADR (QFIN) Hits Fresh High: Is There Still Room to Run?
Shares of 360 DigiTech, Inc. Sponsored (QFIN - Free Report) have been strong performers lately, with the stock up 64.1% over the past month. The stock hit a new 52-week high of $45 in the previous session. 360 DigiTech, Inc. Sponsored has gained 273.6% since the start of the year compared to the 1.4% move for the Zacks Business Services sector and the 6.8% return for the Zacks Technology Services industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 27, 2021, 360 DigiTech, Inc. Sponsored ADR reported EPS of $1.34 versus consensus estimate of $0.78.
For the current fiscal year, 360 DigiTech, Inc. Sponsored ADR is expected to post earnings of $4.56 per share on $2.4 billion in revenues. This represents a 20% change in EPS on a 21.27% change in revenues. For the next fiscal year, the company is expected to earn $5.39 per share on $2.68 billion in revenues. This represents a year-over-year change of 18.2% and 11.79%, respectively.
Valuation Metrics
360 DigiTech, Inc. Sponsored ADR may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
360 DigiTech, Inc. Sponsored ADR has a Value Score of A. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 9.7X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 12.4X versus its peer group's average of 24.4X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, 360 DigiTech, Inc. Sponsored ADR currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if 360 DigiTech, Inc. Sponsored ADR fits the bill. Thus, it seems as though 360 DigiTech, Inc. Sponsored ADR shares could still be poised for more gains ahead.
How Does 360 DigiTech, Inc. Sponsored ADR Stack Up to the Competition?
Shares of 360 DigiTech, Inc. Sponsored ADR have been rising, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also solid potential picks, including AstroNova (ALOT - Free Report) , Seagate Technology Holdings (STX - Free Report) , and ManpowerGroup (MAN - Free Report) , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
However, it is worth noting that the Zacks Industry Rank for this group is in the bottom half of the ranking, so it isn't all good news for 360 DigiTech, Inc. Sponsored ADR. Still, the fundamentals for 360 DigiTech, Inc. Sponsored ADR are promising, and it still has potential despite being at a 52-week high.