Chart of the Day: Qifu Technology - Cracking the Chinese Market

Summary

• Qifu Technology (QFIN) has shown strong technical buy signals, gaining 22.36% since the Trend Seeker buy signal on 8/13, with consistent price appreciation.
• The company operates a credit-tech platform in China, providing various credit-driven services and loans to SMEs, consumers, and financial institutions.
• Barchart's indicators show 100% technical buy signals, a 50% gain in the last year, and a 30.22% increase in the last month.
• Analysts rate QFIN highly with 9 strong buys, a consensus price target of $28.79, and MorningStar's fair value at $30, indicating it is 14% undervalued.

The Chart of the Day belongs to the Chinese credit services company Qifu Technology (QFIN) . I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 8/13 the stock gained 22.36%.

Qifu Technology, Inc., together with its subsidiaries, operates credit-tech platform under the 360 Jietiao brand in the People's Republic of China. The company provides credit-driven services that matches borrowers with financial institutions to conduct customer acquisition, initial and credit screening, advanced risk assessment, credit assessment, fund matching, and other post-facilitation services; and platform services, including loan facilitation and post-facilitation services to financial institution partners under intelligence credit engine, referral services, and risk management software-as-a-service. It offers e-commerce loans, enterprise loans, and invoice loans to SME owners. It serves financial institutions, consumers, and small- and micro-enterprises. The company was formerly known as 360 DigiTech, Inc. and changed its name to Qifu Technology, Inc. in March 2023. Qifu Technology, Inc. was founded in 2016 and is headquartered in Shanghai, the People's Republic of China. 

Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.

Barchart Technical Indicators:

• 100% technical buy signals
• 67.73+ Weighted Alpha
• .61 - 60 month Beta
• 50.00% gain in the last year
• Trend Seeker buy signal
• Above its 20, 50 and 100 day moving averages
• 16 new highs and up 30.22% in the last month
• Relative Strength Index 79.51%
• Technical support level at $25.35
• Recently traded at $25.94 with 50 day moving average of $21.01

Fundamental Factors:

• Market Cap $4.14 billion
• P/E 6.18
• Dividend yield 4.14%
• Revenue expected to grow 2.00% this year and another 3.30% next year
• Earnings estimated to increase35.10% this year, an additional 7.00% next year and continue to compound at an annual rate of 2.99% for the next 5 years

Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:

• Wall Street analyst gave 9 strong buy,and 3 buy opinions on the stock
• Analysts' price targets are between 25 and $31 with a consensus of $28.79 about a 12% gain
• MorningStar rates the stock an average 3 star rating with Fair Value at $30 or 14% under valued
• 6,840 investors monitor the stock on Seeking Alpha

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.