Momentum investing centers around the idea of capitalizing on a stock’s recent price trends. This can involve buying stocks that are on an upward trajectory, hoping to sell them at an even higher price. The key principle is that once a stock establishes a clear trend, it’s more likely to continue moving in that direction. This strategy aims for timely and profitable trades. While many investors seek momentum stocks, defining it accurately can be challenging. The Zacks Momentum Style Score addresses this by providing a comprehensive assessment of momentum indicators.
Qifu Technology, Inc. (QFIN), currently holds a Momentum Style Score of ‘B’, indicating strong potential. The score considers factors like price change and earnings estimate revisions. It’s worth noting that this Style Score complements the Zacks Rank, a stock rating system with a proven track record of success. QFIN also holds a Zacks Rank of #1 (Strong Buy), suggesting it could outperform the market. Our research demonstrates that stocks with Zacks Rank #1 or #2 and Style Scores of A or B tend to outperform the market in the following month.
Positive Momentum Signals for QFIN:
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Strong Short-Term Price Activity:
QFIN shares have increased by 5.88% over the past week, outperforming the Zacks Technology Services industry, which saw a decline of 0.76%. Looking at a longer timeframe, the stock’s monthly price change of 31.23% significantly outperforms the industry’s 0.22%.*
Positive Long-Term Performance:
QFIN has experienced a remarkable 27.19% increase in share price over the past quarter, and a 48.35% gain in the last year. This outpaces the S&P 500’s performance of 5.01% and 23.98% respectively.*
Elevated Trading Volume:
QFIN’s 20-day average trading volume is currently 1,694,773 shares. A rising stock with above-average volume generally indicates bullish sentiment.*
Positive Earnings Estimates:
Over the past two months, 2 earnings estimates for QFIN have moved higher for the full year, while none have moved lower. This has boosted the consensus estimate for QFIN from $4.10 to $4.94 in the past 60 days. For the next fiscal year, 2 estimates have moved upward, with no downward revisions.
Key Takeaways:
The combination of positive price movement, rising earnings estimates, and above-average trading volume makes QFIN a compelling momentum play. It’s a #1 (Strong Buy) stock with a Momentum Score of ‘B’, suggesting strong potential for near-term gains. If you are seeking momentum-driven opportunities, QFIN is worth adding to your watchlist.
