Chinese Fintech Stock Qifu Hits Buy Point As Profit Growth Accelerates

Blockhead
28 Nov 2024

Chinese fintech leader Qifu Technology (QFIN) recently found support at a key level and is rebounding above a new buy point and into new highs. The China stock is one of the best names to buy and watch on Investor's Business Daily's Stock Spotlight screen.

Qifu is a leading credit technology platform in China. It connected 162 financial institutional partners and 254.3 million consumers with potential credit needs as of Sept. 30.

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In its latest quarterly report, issued Nov. 19, Qifu said it earned $1.76 per share on sales of $622.7 million, year-over-year increases of 78% and 6%, respectively. The sales growth increase was in line with the previous quarter, while earnings growth ramped up for a second straight quarter. Accelerating quarterly earnings growth is a hallmark of stock market winners.

"As a tech-driven company, we are committed to leveraging AI (artificial intelligence) and large language models to empower our business and improve both the user experience and operational efficiency" Chief Executive Haisheng Wu said on the earnings call with analysts. "We upgraded our efficiency-focused AI co-pilot system, achieving a recall rate of 96.3% and an accuracy rate of 98.8% in key information extraction for loan collection."

Wu continued, "This AI co-pilot system has been deployed across various collection scenarios, including user information identification and case tracking, enabling our collection team to more effectively pinpoint critical information and promptly follow up on cases."


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China Stock Hits Buy Point

In mid-November, shares of Qifu Technology pulled back to their 10-week moving average where they found decisive support. Now, the China stock is moving past a 35.23 buy point in a short consolidation. The 5% buy zone runs up to 36.99, so Qifu stock is moving out of buy range.

The stock's relative strength line is at new highs, reiterating the China stock as a market leader. The RS line measures a stock's price action vs. the S&P 500.

IBD Stock Checkup shows that Qifu stock shows a near-perfect 98 IBD Composite Rating. That makes the China stock one of the best names to buy and watch right now.

Be sure to follow Scott Lehtonen on X at @IBD_SLehtonen for more on the Dow Jones Industrial Average, the stock market today and the best stocks to buy and watch.

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