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Bear of the Day: QIWI (QIWI)

Kevin Cook

QIWI plc (QIWI) is an $800 million provider of next generation payment services primarily in Russia. The company has an integrated network that enables payment services across physical, online and mobile channels.

The QIWI network enables merchants to accept cash and electronic payments from virtual wallets, and operates cash-collecting terminals and kiosks. QIWI plc is based in Moscow and went public in 2013.

The reason that QIWI is in the cellar of the Zacks Rank is that EPS estimates recently took a hit after a resurgence in the first half of the year.

In July, analysts began lowering estimates when the stock was still trading above $20. And that was when QIWI became a Zacks #4 Rank Sell.

To tell the tale with a picture, here's the Zacks proprietary Price & Consensus chart which plots the stock price against changes in annual EPS projections...

In Q2, QIWI was a Zacks #1 Rank Strong Buy as the estimates moved up. If you had followed the Rank then, you would have caught the move in the stock from $17 to $25.

And last month, the Rank identified what many would have thought was a buying opportunity on the pullback to $20 as really a new sell signal. The new consensus EPS for 2017 of $1.11 represents negative "growth" of -13%, even while revenue estimates still reflect 19% growth to $198 million.

And while next year's EPS forecast of $1.44 would be 30% growth, investors should wait and watch for the estimates to turn back up before investing in QIWI.

The Zacks Rank will let you know.

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