Jiayin Group Inc. Sponsored ADR (JFIN Quick QuoteJFIN - Free Report) shares ended the last trading session 24% higher at $7.12. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 38.8% loss over the past four weeks.

The increase in share price can be attributed to increasing optimism over Jiayin’s growth prospect in China’s fintech market. China has one of the world’s largest fintech markets.

Coronavirus-induced digital transformation has provided a solid boost to the sector. Strong demand for cashless transaction, driven by increasing number of mobile payment users, bodes well for Jiayin.

Markedly, in fourth-quarter fiscal 2020, Loan origination volume increased 6.5% year over year to RMB3,088 million ($473.3 million).

Price and Consensus

This company is expected to post quarterly earnings of $0.20 per share in its upcoming report, which represents a year-over-year change of +66.7%. Revenues are expected to be $53.85 million, up 21.6% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Jiayin Group Inc. Sponsored ADR, the consensus EPS estimate for the quarter has been revised 21.1% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on JFIN going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>