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360 DigiTech, Inc. Sponsored ADR (QFIN) Stock Sinks As Market Gains: What You Should Know

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360 DigiTech, Inc. Sponsored ADR (QFIN - Free Report) closed at $20.97 in the latest trading session, marking a -1.6% move from the prior day. This move lagged the S&P 500's daily gain of 0.82%.

Coming into today, shares of the company had lost 40.38% in the past month. In that same time, the Business Services sector lost 2.2%, while the S&P 500 gained 0.89%.

Wall Street will be looking for positivity from QFIN as it approaches its next earnings report date. In that report, analysts expect QFIN to post earnings of $1.18 per share. This would mark year-over-year growth of 34.09%.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.56 per share and revenue of $2.4 billion, which would represent changes of +20% and +21.27%, respectively, from the prior year.

Any recent changes to analyst estimates for QFIN should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. QFIN is currently sporting a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that QFIN has a Forward P/E ratio of 4.67 right now. For comparison, its industry has an average Forward P/E of 32.64, which means QFIN is trading at a discount to the group.

The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 188, which puts it in the bottom 26% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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