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Is 360 DigiTech, Inc. Sponsored ADR (QFIN) Stock Undervalued Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

360 DigiTech, Inc. Sponsored ADR (QFIN - Free Report) is a stock many investors are watching right now. QFIN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Another notable valuation metric for QFIN is its P/B ratio of 2.60. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 5.17. Over the past year, QFIN's P/B has been as high as 3.39 and as low as 1.19, with a median of 1.69.

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 1.99. This compares to its industry's average P/S of 4.98.

Finally, investors will want to recognize that QFIN has a P/CF ratio of 7.77. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their 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 10.14 and as low as 3.56, with a median of 5.43.

These are just a handful of the figures considered in 360 DigiTech, Inc. Sponsored ADR's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that QFIN is an impressive value stock right now.


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