LexinFintech Holdings Ltd (NASDAQ:LX) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of LX, it is a company with an optimistic growth outlook, which has not yet been factored into the price. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on LexinFintech Holdings here.
Exceptional growth potential and undervalued
Investors in search of impressive top-line expansion should look no further than LX, with its expected revenue growth to more than double in the upcoming year. This is expected to flow down into an impressive return on equity of 50.9% over the next couple of years. LX’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of LX’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the consumer finance industry, LX is also trading below its peers, relative to earnings generated. This supports the theory that LX is potentially underpriced.
For LexinFintech Holdings, I’ve put together three key aspects you should further research:
- Historical Performance: What has LX’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of LX? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.