X FINANCIAL-ADR (NYSE:XYF) – A Strong Contender for CANSLIM Investors

X FINANCIAL-ADR (NYSE:XYF) stands out as a potential candidate for investors following the CANSLIM strategy. The stock meets several key criteria of the system, including strong earnings growth, high relative strength, and solid profitability metrics. Below, we examine why XYF aligns with the CANSLIM approach.

Key CANSLIM Criteria XYF Meets

• Earnings Growth (C & A):

  • Quarterly EPS growth (Q2Q) of 44.26%, well above the 20% minimum threshold.
  • Quarterly revenue growth (Q2Q) of 60.43%, indicating strong sales momentum.
  • Three-year EPS growth of 28.92%, demonstrating sustained profitability.

• Relative Strength (L):

  • A ChartMill Relative Strength score of 99.01, placing it among the top 1% of stocks in terms of price performance.

• Profitability (A):

  • Return on Equity (ROE) of 21.99%, reflecting efficient use of shareholder capital.
  • Operating margin of 62.29%, one of the highest in its industry.

• Debt Management (S):

  • A low debt-to-equity ratio of 0.34, indicating a conservative balance sheet.

• Institutional Sponsorship (I):

  • Institutional ownership is just 3.95%, suggesting room for increased institutional interest.

Technical Strength

XYF’s technical rating is a perfect 10/10, with both short-term and long-term trends positive. The stock recently hit a 52-week high, reinforcing its leadership position. However, the extended price movement suggests waiting for a pullback before entry.

Valuation

Despite its strong growth, XYF trades at a P/E ratio of 4.03, significantly below industry and S&P 500 averages. This makes it an attractively priced growth stock.

For a deeper look, review the full fundamental analysis and technical report.

Our CANSLIM High Growth screener lists more stocks meeting these criteria and is updated daily.

Disclaimer

This is not investment advice. Always conduct your own research before making investment decisions.