Should Value Investors Buy 360 Finance, Inc. Sponsored ADR (QFIN) Stock?

QFIN

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is 360 Finance, Inc. Sponsored ADR (QFIN - Free Report) . QFIN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. QFIN has a P/S ratio of 1.04. This compares to its industry's average P/S of 2.38.

Finally, we should also recognize that QFIN has a P/CF ratio of 5.67. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 21.22. Over the past 52 weeks, QFIN's P/CF has been as high as 8.62 and as low as 2.71, with a median of 4.07.

These are only a few of the key metrics included in 360 Finance, Inc. Sponsored ADR's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, QFIN looks like an impressive value stock at the moment.

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