NASDAQ:QFIN, a strong growth stock, setting up for a breakout.

In this article we will dive into QIFU TECHNOLOGY INC (NASDAQ:QFIN) as a possible candidate for growth investing. Investors should always do their own research, but we noticed QIFU TECHNOLOGY INC showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

Assessing Growth for NASDAQ:QFIN

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:QFIN has achieved a 8 out of 10:

• The Earnings Per Share has grown by an impressive 24.11% over the past year.
• Looking at the last year, QFIN shows a quite strong growth in Revenue. The Revenue has grown by 9.80% in the last year.
• QFIN shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 29.65% yearly.
• The Earnings Per Share is expected to grow by 20.77% on average over the next years. This is a very strong growth
• QFIN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.18% yearly.
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Evaluating Health: NASDAQ:QFIN

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:QFIN has earned a 7 out of 10:

• The Debt to FCF ratio of QFIN is 0.14, which is an excellent value as it means it would take QFIN, only 0.14 years of fcf income to pay off all of its debts.
• QFIN's Debt to FCF ratio of 0.14 is amongst the best of the industry. QFIN outperforms 94.12% of its industry peers.
• A Debt/Equity ratio of 0.05 indicates that QFIN is not too dependend on debt financing.
• The Debt to Equity ratio of QFIN (0.05) is better than 86.27% of its industry peers.
• QFIN has a Current Ratio of 2.45. This indicates that QFIN is financially healthy and has no problem in meeting its short term obligations.
• QFIN's Current ratio of 2.45 is fine compared to the rest of the industry. QFIN outperforms 76.47% of its industry peers.
• A Quick Ratio of 2.45 indicates that QFIN has no problem at all paying its short term obligations.
• With a decent Quick ratio value of 2.45, QFIN is doing good in the industry, outperforming 78.43% of the companies in the same industry.

Looking at the Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:QFIN scores a 8 out of 10:

• QFIN has a better Return On Assets (10.21%) than 92.16% of its industry peers.
• QFIN has a better Return On Equity (21.26%) than 84.31% of its industry peers.
• QFIN has a better Return On Invested Capital (15.97%) than 92.16% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for QFIN is significantly above the industry average of 7.38%.
• With an excellent Profit Margin value of 28.08%, QFIN belongs to the best of the industry, outperforming 92.16% of the companies in the same industry.
• QFIN has a better Operating Margin (35.21%) than 94.12% of its industry peers.
• With an excellent Gross Margin value of 83.44%, QFIN belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.

How do we evaluate the setup for NASDAQ:QFIN?

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NASDAQ:QFIN exhibits a 7 setup rating, indicating its consolidation status in recent days and weeks.

QFIN has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

Check the latest full fundamental report of QFIN for a complete fundamental analysis.

Check the latest full technical report of QFIN for a complete technical analysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.