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

Zacks Equity Research
·2 min read

360 DigiTech, Inc. Sponsored ADR (QFIN) closed at $26.15 in the latest trading session, marking a +0.81% move from the prior day. This move outpaced the S&P 500's daily gain of 0.17%. Meanwhile, the Dow lost 0.02%, and the Nasdaq, a tech-heavy index, added 0.38%.

Heading into today, shares of the company had gained 101.87% over the past month, outpacing the Business Services sector's gain of 0.89% and the S&P 500's gain of 2.33% in that time.

Investors will be hoping for strength from QFIN as it approaches its next earnings release. In that report, analysts expect QFIN to post earnings of $1.05 per share. This would mark year-over-year growth of 110%.

Any recent changes to analyst estimates for QFIN should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. QFIN is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, QFIN currently has a Forward P/E ratio of 6.42. For comparison, its industry has an average Forward P/E of 34.98, which means QFIN is trading at a discount to the group.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 197, putting it in the bottom 23% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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