Qifu Technology Stock (NASDAQ:QFIN), Trade Ideas

Qifu Technology

360 DigiTech

Qifu Technology Inc is a Credit-Tech platform in China. It provides credit services more accessible and personalized to consumers and SMEs through Credit-Tech services to financial institutions, whereby it deploys its technology solutions to help financial institutions identify the diversified needs of consumers and SMEs, effectively access prospective borrowers that are creditworthy through multi-channels, enhance credit assessment on prospective borrowers, and manage credit risks and improve collection strategies and efficiency, among others.

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FINV

QFIN

Key Takeaways:


	Lufax announced a massive special dividend of $2.42 per ADS, equal to about half of its Friday closing price of $4.48
	The company slashed the size of its loan portfolio by 45% last year, and expects to reduce it by another 32% this year as it focuses on higher quality borrowers


By Doug Young

Investors Unimpressed By Massive Dividend From Shrinking Lufax

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AMAT

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GLOB

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MOBV

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ZJYL

Shares of Dolby Laboratories, Inc. (NYSE: DLB) fell during Friday’s session following weak guidance.

Why Dolby Laboratories Shares Are Trading Lower By Around 8%? Here Are Other Stocks Moving In Friday&#39;s Mid-Day Session

CRBU

CRSP

ICVX

U.S. stocks traded mostly lower, with the Dow Jones falling over 20 points on Friday.

Ross Stores Reports Strong Earnings, Joins Buckle, Twist Bioscience And Other Big Stocks Moving Higher On Friday

Qifu Technology, Inc - American Depositary Shares

Qifu Technology Inc

Biotres Pro Is Also Capturing The Attention Of New Customers. The Initial Production Run Of Biotres Pro Has Sold Out, With Customers Placing Pre-orders For The Next Run, Which Is Scheduled To Ship To Customers By End Of May. 
&nbsp;

Health Care

BTCY

Biotricity Announces High Demand For Its LBiotres Pro, a 3-Channel Patch-like ECG, Biotres Pro Is Expected To Raise The Average Subscription Price By Over 32%, Translating To Revenue Increase Of Up To 10% From Sales To Existing Customers Throughout 2025

Snap Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNAP#NYSE">SNAP</a>) shares are skyrocketing in the<a target="_blank" href="https://www.benzinga.com/premarket" rel="noreferrer noopener">&nbsp;premarket session on Friday.</a>
Yesterday, the company&nbsp;reported its first-quarter financial results with quarterly earnings of 3 cents per share,&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/04/38445632/snap-shares-soar-on-better-than-expected-q1-results-daily-active-user-growth-q2-revenue-guidance" rel="noreferrer noopener">beating the analyst consensus estimate of a loss of 5 cents per share</a>.
Adjusted EBITDA was&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/04/b38443869/snap-inc-announces-first-quarter-2024-financial-results" rel="noreferrer noopener">$46 million, compared to $1 million in the prior year.</a>
While reporting quarterly results, Snap highlighted new tools, including new Creative Templates, the ability to post longer videos, and access to AI-powered AR Lens creation.
The company said it onboarded over 1,500 Snap Stars in the quarter, which has helped generate quarter-over-quarter growth in Story posts, Spotlight posts, and Stories time spent for Snap Stars globally.
Based on these strengths, quarterly sales clocked in at $1.195 billion, which beat the analyst consensus estimate of $1.12 billion by 6.74% and represents a 20.88% increase over sales&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">of $988.608 million from the same period last year.</a>
The company reported 422 million daily active users in the first quarter, an increase of 39 million, or 10%, year-over-year.
Snap sees second-quarter revenues between<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">&nbsp;$1.225 billion and $1.255 billion.&nbsp;</a>
&#8220;As we enter Q2, we anticipate continued growth of our global community, and as a result, our Q2 guidance&nbsp;is built&nbsp;on the assumption that DAU will be approximately 431 million in Q2,&#8221; the company said.&nbsp;
According to&nbsp;<a target="_blank" href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" rel="noreferrer noopener">Benzinga Pro</a>,&nbsp;SNAP stock has gained over 15% in the past year.&nbsp;Investors can gain exposure to the stock via&nbsp;Global X Social Media ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOCL#NASDAQ">SOCL</a>) and&nbsp;Fidelity Disruptive Communications ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FDCF#NASDAQ">FDCF</a>).
Price Action: SNAP shares are trading higher by 25.6% at $14.32 premarket at last check Friday.
Photo by Christopher Penler on Shutterstock

Equities

FDCF

SNAP

SOCL

Snap Gains Over 25% - What's Going On?

HC Wainwright &amp; Co. analyst Kevin Dede reiterates Argo Blockchain (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARBK#NASDAQ">ARBK</a>) with a Neutral.

Reiteration

Analyst Ratings

ARBK

HC Wainwright & Co. Reiterates Neutral on Argo Blockchain

WIIM

GOOG

GOOGL

Alphabet Board Authorized Repurchase Of Additional $70B Of Class A And Class C Shares. Also, multiple firms raised their respective price targets on the stock.

Goldman Sachs analyst Toshiya Hari maintains Intel (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) with a Sell and lowers the price target from $39 to $34.

Price Target

INTC

Goldman Sachs Maintains Sell on Intel, Lowers Price Target to $34

CHTR

Charter Communications shares are trading lower after the company reported worse-than-expected Q1 results.

DA Davidson initiates coverage on NAPCO Security Techs (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NSSC#NASDAQ">NSSC</a>) with a Buy rating and announces Price Target of $52.

Initiation

NSSC

DA Davidson Initiates Coverage On NAPCO Security Techs with Buy Rating, Announces Price Target of $52

Oil States International (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OIS#NYSE">OIS</a>) reported quarterly losses of $(0.03) per share which missed the analyst consensus estimate of $(0.01) by 200 percent. This is a 200 percent decrease over earnings of $0.03 per share from the same period last year. The company reported quarterly sales of $167.262 million which missed the analyst consensus estimate of $190.075 million by 12.00 percent. This is a 14.75 percent decrease over sales of $196.199 million the same period last year.

Earnings

Earnings Misses

CORRECTION: Oil States International Q1 2024 Adj EPS $(0.03) Misses $(0.01) Estimate, Sales $167.262M Miss $190.075M Estimate

Needham analyst Quinn Bolton reiterates Intel (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) with a Hold.

Needham Reiterates Hold on Intel

APLS

Apellis Pharmaceuticals shares are trading higher after the European Medicines Agency resets Pegcetacoplan review for geographic atrophy to day 180 of initial assessment.

CLSA reinstates H World Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HTHT#NASDAQ">HTHT</a>) with a Buy and announces $47 price target.

HTHT

CLSA Reinstates Buy on H World Group, Announces $47 Price Target

Chipotle Mexican Grill Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMG#NYSE">CMG</a>) reportedly instructed its employees recently not to opt for chicken in their meals due to high demand but has now lifted the restriction.
Chipotle&nbsp;informed its U.S. employees through email&nbsp;about the reintroduction of chicken al pastor, citing challenges arising from its success,&nbsp;<a target="_blank" href="https://www.bloomberg.com/news/articles/2024-04-25/chipotle-tells-workers-to-skip-chicken-as-customer-demand-surges?srnd=industries-v2&amp;sref=TBDibEcD" rel="noreferrer noopener">reported&nbsp;</a>Bloomberg.
The message from Chief Restaurant Officer Scott Boatwright requested employees to abstain from ordering chicken, stating it was to preserve&nbsp;supply for customers, as per the report.
Chipotle clarified that the directive was a request, not a mandate, and announced employees could resume ordering chicken as usual within a week.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38437634/chipotle-mexican-grill-is-in-a-league-of-their-own-7-analysts-revise-forecasts-afte" rel="noreferrer noopener">Chipotle Mexican Grill Is In A &#8216;League Of Their Own&#8217;: 7 Analysts Revise Forecasts After Q1 Results</a>
CEO Brian Niccol confirmed to Bloomberg that it was a temporary supply crunch but assured that the issue had been resolved with no ongoing challenges.
Employees at&nbsp;Chipotle&#8217;s only unionized U.S. store in Michigan voiced concerns over the company&#8217;s policy enforcement and the need for a secure union contract.
Chicken al pastor&nbsp;was highlighted&nbsp;as a successful marketing initiative&nbsp;contributing&nbsp;to increased sales in the first quarter.
Earlier this week, Chipotle said first-quarter revenue increased 14.1% year-over-year to $2.702 billion, which beat the analyst&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/04/38417218/chipotle-mexican-grill-q1-earnings-revenue-beat-eps-beat-comparable-sales-up-7-and-more" rel="noreferrer noopener">consensus estimate of $2.675 billion</a>.
The fast-casual restaurant chain company reported adjusted earnings of $13.37 per share, which beat analyst estimates of $11.68&nbsp;per share.&nbsp;
Read Next:&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/04/38360106/chipotle-to-spice-up-kuwait-city-new-location-marks-decade-long-international-expansion" rel="noreferrer noopener">Chipotle To Spice Up Kuwait City: New Location Marks Decade-Long International Expansion</a>
Chipotle Mexican Grill stock gained over 54% in the last 12 months. Investors can gain exposure to the stock via&nbsp;Vanguard Total Stock Market ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTI#NYSE">VTI</a>) and&nbsp;Invesco Food &amp; Beverage ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PBJ#NYSE">PBJ</a>).
Price Action: CMG shares closed higher by 6.33% at $3,111.97 on Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

Media

Chipotle Requests Employees To Not Eat Chicken So They Can Sell More, Rescinds Soon

Biotech

European Medicines Agency Has Reset The Review Of Apellis Pharmaceuticals' Intravitreal Pegcetacoplan For Geographic Atrophy To The Last Phase Of The Initial Assessment (Day 180). Apellis Anticipates An Opinion From CHMP No Later Than July 2024

Needham analyst James Ricchiuti maintains Plexus (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLXS#NASDAQ">PLXS</a>) with a Buy and raises the price target from $107 to $114.

PLXS

Needham Maintains Buy on Plexus, Raises Price Target to $114

Needham analyst Charles Shi reiterates KLA (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KLAC#NASDAQ">KLAC</a>) with a Hold.

KLAC

Needham Reiterates Hold on KLA

Newell Brands shares are trading higher after the company reported better than expected Q1 earnings and issued guidance.

Scotiabank analyst Patrick Colville initiates coverage on Tenable Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TENB#NASDAQ">TENB</a>) with a Sector Perform rating and announces Price Target of $47.

TENB

Scotiabank Initiates Coverage On Tenable Holdings with Sector Perform Rating, Announces Price Target of $47

Goldman Sachs analyst Kash Rangan maintains Microsoft (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) with a Buy and raises the price target from $450 to $515.

MSFT

Goldman Sachs Maintains Buy on Microsoft, Raises Price Target to $515

Scotiabank analyst Patrick Colville initiates coverage on Rapid7 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RPD#NASDAQ">RPD</a>) with a Sector Perform rating and announces Price Target of $46.

Scotiabank Initiates Coverage On Rapid7 with Sector Perform Rating, Announces Price Target of $46

AVTR

Avantor shares are trading lower after the company reported worse-than-expected Q1 sales results and reiterated FY24 guidance.

The financial industry is set for robust growth and profitability, fueled by easy accessibility to digital financial services, rising consumer spending, sustained demand, and widespread adoption of digital technology. Therefore, investors could consider buying fundamentally strong financial stocks Morningstar (MORN), Qifu Technology (QFIN), and Manhattan Bridge Capital (LOAN). Read more... The financial sector is poised for significant growth, driven by the easy accessibility of digital financial services, increasing consumer spending, and rapid technological evolution. The transformation of the financial sector is characterized by innovations such as online banking, mobile payments, and fintech.
Amid this backdrop, it could be wise to buy fundamentally strong financial stocks: Morningstar, Inc. (<a href="https://stocknews.com/stock/MORN/">MORN</a>), Qifu Technology, Inc. (<a href="https://stocknews.com/stock/QFIN/">QFIN</a>), and Manhattan Bridge Capital, Inc. (<a href="https://stocknews.com/stock/LOAN/">LOAN</a>).
Before diving deeper into the fundamentals of these stocks, let's discuss what's going on in the financial services industry.
Financial services include investment brokerage, insurance, real estate, banking, asset management services, wealth management, Buy Now Pay Later (BNPL), etc. The demand for financial services looks promising, and the financial sector seems well-positioned to remain resilient. It is expected to witness robust growth, driven by the strong demand for financial services amongst enterprises and individuals.
With digitization reshaping the financial industry's prospects, the financial services market is projected to grow at a <a href="https://www.thebusinessresearchcompany.com/report/financial-services-global-market-report">CAGR of 7.6%</a> to reach $44.93 trillion by 2026. Financial institutions are now enhancing user experiences through personalized services and fast transaction processing while adopting cloud, mobile, and blockchain technology.
By leveraging AI and Machine Learning, financial companies are transforming task automation, fraud detection, and customer support. On top of it, the shift towards digital payments and online transactions presents significant growth opportunities for consumer finance companies. As a result, the global consumer finance market is expected to reach <a href="https://www.blueweaveconsulting.com/report/consumer-finance-market">$1.96 trillion by 2029</a>, growing at a CAGR of 7.1%.
Furthermore, a rise in underlying inflation, a tight labor market, and a strong economy have prevented the Federal Reserve from cutting interest rates in March. With the central bank unclear on when it would start with its interest rate cuts, economists now believe that the borrowing costs could remain higher for longer.
This could be beneficial for financial companies as their revenues get a boost in a high-interest-rate environment. Investors' interest in financial stocks is evident from the Financial Select Sector SPDR ETF's (<a href="https://stocknews.com/stock/XLF/">XLF</a>) 25.4% returns over the past nine months.
Considering these conducive trends, let's analyze the fundamental aspects of the three financial stocks.
Morningstar, Inc. (<a href="https://stocknews.com/stock/MORN/">MORN</a>)
MORN provides independent investment insights internationally. The company operates in five segments: Morningstar Data and Analytics, PitchBook, Morningstar Wealth, Morningstar Credit, and Morningstar Retirement.
In terms of the trailing-12-month Capex/Sales, MORN's 5.84% is 184% higher than the 2.06% industry average. Its 4.15% trailing-12-month Return on Total Assets is 280.9% higher than the 1.09% industry average. Likewise, its 0.59x trailing-12-month <a href="https://www.investopedia.com/terms/a/assetturnover.asp">asset turnover ratio</a> is 180% higher than the industry average of 0.21x.
MORN's revenue for the fourth quarter ended December 31, 2023, increased 13.4% year-over-year to $538.70 million. Its adjusted operating income rose 70.2% year-over-year to $113 million. The company's net income rose significantly over the year-ago value to $73.50 million. In addition, its adjusted net income per share came in at $1.97, up 239.7% over the prior-year quarter.
Analysts expect MORN's EPS and revenue for the fiscal year 2024 to increase 28.9% and 13% year-over-year to $6.60 and $2.30 billion, respectively. Over the past nine months, the stock has gained 46.2% to close the last trading session at $298.25.
MORN's positive outlook is reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. It has an overall rating of B, equating to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
It is ranked #7 out of 99 stocks in the <a href="https://stocknews.com/category/enterprise-financial-services/">Financial Services (Enterprise)</a> industry. It has an A grade for Sentiment and a B for Growth and Stability. To access MORN's grades for Value, Momentum, and Quality, <a href="https://stocknews.com/stock/MORN/">click here</a>.
Qifu Technology, Inc. (<a href="https://stocknews.com/stock/QFIN/">QFIN</a>)
Headquartered in Shanghai, the People's Republic of China, QFIN and its subsidiaries operate a credit-tech platform under the 360 Jietiao brand in the People's Republic of China. It provides credit-driven services and platform services.
In terms of the trailing-12-month EBIT margin, QFIN's 50.02% is 128.6% higher than the 21.88% industry average. Likewise, its 50.56% trailing-12-month EBITDA margin is 141.7% higher than the industry average of 20.92%. Additionally, its 8.79% trailing-12-month Return on Total Assets is 707.3% higher than the industry average of 1.09%.
QFIN's net revenue for the fiscal third quarter that ended September 30, 2023, increased 3.3% year-over-year to RMB4.28 billion ($594.62 million). Its non-GAAP income from operations rose 18.6% over the prior-year quarter to RMB1.43 billion ($198.67 million).
For the same quarter, the company's non-GAAP net income attributable to shareholders of QFIN and non-GAAP net income per ADS attributable to ordinary shareholders of QFIN came in at RMB1.19 ($165.33 million) and RMB7.20, respectively, up 13.7% and 11.1% year-over-year.
Street expects QFIN's revenue for the quarter ended December 31, 2023, to increase 5.9% year-over-year to $594.12 million. Its EPS for the fiscal year ended December 31, 2024, and it is expected to increase 14.2% year-over-year to $4.29. Over the past month, the stock has gained 10.7% to close the last trading session at $15.90.
It's no surprise that QFIN has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.
It has a B grade for Value, Momentum, Sentiment, and Quality. Within the B-rated <a href="https://stocknews.com/category/consumer-finance/">Consumer Financial Services</a> industry, it is ranked first out of 46 stocks. In total, we rate QFIN on eight different levels. Beyond what we stated above, we also have given QFIN grades for Growth and Stability. Get all the QFIN ratings <a href="https://stocknews.com/stock/QFIN/">here</a>.
Manhattan Bridge Capital, Inc. (<a href="https://stocknews.com/stock/LOAN/">LOAN</a>)
LOAN is a real estate finance company that originates, services, and manages a portfolio of first mortgage loans in the United States. The company offers short-term, secured, and non-banking loans to real estate investors to fund their acquisition, renovation, rehabilitation, or development of residential or commercial properties.
In terms of the trailing-12-month gross profit margin, LOAN's 100% is 66.8% higher than the 59.95% industry average. Its 7.33% trailing-12-month Return on Total Assets is 573.3% higher than the 1.09% industry average. Additionally, its 12.37% trailing-12-month Return on Common Equity is 14.2% higher than the 10.83% industry average.
For the third quarter that ended September 30, 2023, LOAN's total revenues increased 15.5% year-over-year to $2.43 million, and its interest income from loans rose 18.8% over the prior-year quarter to $1.99 million. Also, the company's net income was $1.45 million and $0.13 per common share, up 16.9% and 18.2% year-over-year, respectively.
For the quarter ended December 31, 2023, LOAN's EPS is expected to increase 20% year-over-year to $0.12. It surpassed the consensus EPS estimates in three of the trailing four quarters. Over the past three months, the stock has gained marginally to close the last trading session at $4.71.
LOAN's strong fundamentals are reflected in its POWR Ratings. It has an overall rating of A, equating to a Strong Buy in our proprietary rating system.
It has a B grade for Stability, Sentiment, and Quality. It is ranked first in the Financial Services (Enterprise) industry. To see LOAN's Growth, Value, and Momentum ratings, <a href="https://stocknews.com/stock/LOAN/">click here</a>.
What To Do Next?
Discover 10 widely held stocks that our proprietary model shows have tremendous downside potential. Please make sure none of these "death trap" stocks are lurking in your portfolio:
<a href="https://report.stocknews.com/free-report/10-stocks-to-sell/?formplacement=artbotad_10sell">10 Stocks to SELL NOW! &gt;</a>
&nbsp;

<hr />
MORN shares were trading at $298.65 per share on Monday morning, up $0.40 (+0.13%). Year-to-date, MORN has gained 4.49%, versus a 7.77% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Abhishek Bhuyan</h2> <img src='https:/wp-content/uploads/2023/07/ABhuyan.jpg' style="float:left; padding:5px;width:125px;">Abhishek embarked on his professional journey as a financial journalist due to his keen interest in discerning the fundamental factors that influence the future performance of financial instruments.<a href="https://stocknews.com/authors/?author=abhishek-bhuyan">More...</a>The post <a href=https://stocknews.com/news/morn-qfin-loan-boost-your-bottom-line-with-these-3-financial-stocks/>Boost Your Bottom Line With These 3 Financial Stocks</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

Boost Your Bottom Line With These 3 Financial Stocks

Forget About Growth. Qifu Shows It's All About Giving Back To Shareholders

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
Finding <a href="https://investorplace.com/stock-types/undervalued-stocks/">undervalued stocks</a> in today&rsquo;s market can be like searching for a needle in a haystack. With stocks regularly hitting new highs, it seems everything has already been bid up to nosebleed valuations. Determining a stock&rsquo;s fair value requires art as much as science &ndash; and predicting the unpredictable whims of Mr. Market is a fool&rsquo;s errand.



However, by taking a long-term view and focusing on fundamentals, it&rsquo;s possible to identify stocks trading at tempting discounts. For investors seeking market-trouncing returns, these undervalued stocks could supercharge portfolio performance. At the same time, their beaten-down prices provide a margin of safety that adds ballast in stormy seas. As investing legends like Warren Buffett and Benjamin Graham preached, buying high-quality companies at bargain prices is one of the surest paths to wealth creation.



With that in mind, here are seven undervalued stocks trading under $20 to look into:



<h2>Undervalued Stocks: Qurate Retail (QRTEA)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/03/qrtea-stock-1-300x169.jpg" alt="A magnifying glass zooms in on the Qurate Retail, Inc. (QRTEA) logo"><div>Source: Pavel Kapysh / Shutterstock.com</div></div>Qurate Retail Group (NASDAQ:<a href="https://investorplace.com/stock-quotes/qrtea-stock-quote/">QRTEA</a>) specializes in video commerce and advertising across various platforms. We&rsquo;ve been witnessing a seismic shift in how digital advertising is executed as the world transitions away from televisions to mobile and computer screens. This explains why companies have dumped substantial amounts of money into the internet-driven digital realm. Firms like Qurate Retail stand out in this space.



What differentiates Qurate Retail is its focus on live shows featuring product demonstrations and exclusive sales to entice customers to purchase items. Management has also expanded the business into mobile apps and online commerce to keep the company relevant in today&rsquo;s marketplace.



However, Qurate Retail has faced immense pressure in recent years, as evidenced by the admittedly ugly stock chart. I believe a turnaround is brewing though, and getting in now could easily generate multibagger returns in the coming months or over the next few years if this turnaround proves successful.



The stock has plunged 93% over the past five years, but the bleeding has slowed and shares have traded sideways for over a year near $1. The primary problem is the $7.3 billion debt load causing substantial interest payments due to rate hikes, leading to rapid balance sheet erosion in recent years. Revenue declines due to scaled-back expansion have also impacted the top line, but helped stabilize the situation by improving profits. Losses are currently not at critical levels, and analysts actually expect <a href="https://seekingalpha.com/symbol/QRTEA/earnings/estimates">EPS of 66 cents for 2024</a>, putting the forward price-to-earnings ratio at just 1.7x. The stock also trades at 0.04x forward sales. I believe once rates inevitably decline, the company would be able to power out of the storm with massive cash flow that can then fund further top-line growth.



<h2>The Goodyear Tire &amp; Rubber Company (GT)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/04/gt_goodyear1600-300x169.png" alt="Sign for Goodyear (GT) tire shop. The Goodyear Tire &amp; Rubber Company is an American tire manufacturing company."><div>Source: Roman Tiraspolsky / Shutterstock.com</div></div>The Goodyear Tire &amp; Rubber Company (NASDAQ:<a href="https://investorplace.com/stock-quotes/gt-stock-quote/">GT</a>) is a global leader in tire and rubber product manufacturing, operating across various regions worldwide. Their primary business involves developing, producing, distributing, and selling tires for diverse applications. Like many auto-related firms, Goodyear has faced challenges in recent years. While not as distressed as QRTEA, Goodyear faces headwinds nonetheless. However, I believe this stock is also gradually recovering and can generate multibagger gains moving forward.



Goodyear is deleveraging its balance sheet, which has $8.65 billion in debt against just $902 million in cash. Still, the company is keeping losses manageable despite substantial interest payments and rate hikes depressing car sales and the broader tire industry. Analysts foresee massive margin expansion in coming years. <a href="https://seekingalpha.com/symbol/GT/earnings/estimates">EPS is projected at $1.24 for 2024</a>, equating to a forward P/E of just 10x. EPS is expected to nearly double from 2024 to 2026. Revenue is also projected to stop declining in 2025 and resume modest but steady growth. I&rsquo;m focused on margins now. Once rate cuts commence, I expect Goodyear&rsquo;s business to make a rapid turnaround.



<h2>StoneCo (STNE)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/04/stne-1600-300x169.jpg" alt="Cellphone with logo of Brazilian fintech business Stone Company (StoneCo) on screen in front of website"><div>Source: T. Schneider / Shutterstock.com</div></div>StoneCo (NASDAQ:<a href="https://investorplace.com/stock-quotes/stne-stock-quote/">STNE</a>) is a Brazilian fintech company (operates more like a bank) that boasts solid top-line growth, unlike the previous two turnaround plays. Revenue is expected to <a href="https://seekingalpha.com/symbol/STNE/earnings/estimates">climb from $2.6 billion in 2024 to $4 billion in 2027</a>, with accelerating growth, plus 20% average annual EPS expansion over the same period. Although the stock sits 82% off its 2021 peak, it has traded sideways for nearly two and a half years, an ideal setup for a discounted fintech stock at just 13x forward earnings. <a href="https://investorplace.com/industries/financial/fintech/">Fintech stocks</a> broadly face pressure amid an unattractive financial sector, but I foresee improvement in the coming years as the economy normalizes.



Notably, Brazil has been more successful with rate hikes and cuts, responding to inflation earlier. Ongoing rate cuts provide tailwinds, with the business already recovering. The guidance calls for a <a href="https://investors.stone.co/news-releases/news-release-details/stoneco-reports-fourth-quarter-and-fiscal-year-2023-results">31% net income CAGR</a> from 2024-2027. This is along with a staggering 90% credit portfolio CAGR. I believe the higher profits will fund expanding growth.



Revenue growth is far below the triple-digit rates seen just two years ago. However, rekindling 30%+ annual growth could prompt a major rerating. With $2.5 billion in cash against $1.1 billion in debt, StoneCo has ample capital to fund this growth when conditions allow. Thus, it is one of the must undervalued stocks, in my opinion.



<h2>PagSeguro (PAGS)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/12/pags1600-300x169.jpg" alt="UOL Pagseguro credit and debit card machine called Minizinha."><div>Source: rafastockbr / Shutterstock.com</div></div>PagSeguro (NYSE:<a href="https://investorplace.com/stock-quotes/pags-stock-quote/">PAGS</a>) is another Brazilian fintech playing in many developing countries with immense potential for fintech growth. Its stock chart somewhat mirrors StoneCo&rsquo;s. However, PAGS has nearly doubled from its November 2023 trough, and I foresee further upside as the business prospers in a more favorable environment. Analysts anticipate <a href="https://seekingalpha.com/symbol/PAGS/earnings/estimates">7-8% annual revenue growth</a> moving forward, plus 15-20% average annual EPS expansion. This is terrific growth for a stock trading at just 11x forward earnings. With $597 million in cash against only $67 million in debt, the balance sheet appears very healthy too.



Brazil&rsquo;s rate cuts are morphing into growth tailwinds, evidenced by <a href="https://seekingalpha.com/article/4675126-pagseguros-pags-stock-solid-q4-earnings-favorable-guidance-attractive-valuations">PagSeguro&rsquo;s 11.8% TPV growth in Q4</a>. Furthermore, micro-merchant TPV grew 14% YoY in Q4, now benefiting from a mobile tap-on-phone solution. Combined with TPV in merchant acquiring, this led to a record R$27.6 billion in deposits, up 33% year-over-year. To me, these metrics point to a very bright future for PagSeguro. It also demonstrates that rate cuts are having a profoundly positive effect on Brazil&rsquo;s fintech sector. As cuts continue, I anticipate PagSeguro&rsquo;s share price will climb higher.



<h2>Qifu Technology (QFIN)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/10/strong-buy-stocks-300x169.jpg" alt='A tickerboard of various stocks, all rated "Strong Buy"'><div>Source: Shutterstock</div></div>Qifu Technology (NASDAQ:<a href="https://investorplace.com/stock-quotes/qfin-stock-quote/">QFIN</a>) is a Chinese Credit-Tech platform delivering comprehensive tech services to aid financial institutions, consumers, and SMEs throughout the loan lifecycle. Offerings range from borrower acquisition and initial credit evaluation to fund matching and post-funding services. Before you run away from this stock given China concerns, let&rsquo;s examine the fundamentals. Although shares are down 57% from the 2021 peak, they are essentially flat compared to March 2022 levels. I believe the latest spike could spur a breakout. The stock trades at a bit above $18 as of writing, and may break above $20 by the time you read this. I apologize if that turns out to be the case.



QFIN posted strong <a href="https://www.google.com/finance/quote/QFIN:NASDAQ">Q4 results</a>, with 15% YoY revenue growth beating estimates by 5.55%. That&rsquo;s alongside a 25% net margin. Qifu also unveiled a new $350 million buyback program starting in April 2024. Bearish China sentiment leaves shares at just 4.4x forward earnings. With $590 million in cash versus $113 million in debt, the balance sheet looks solid too. QFIN also pays a 4.4% dividend and churns out substantial profits. I expect this shareholder-friendly stock to appreciate further as analysts forecast ongoing double-digit EPS expansion. That makes it one of the most undervalued stocks you can buy right now.



<h2>Rush Street Interactive (RSI)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2021/05/bank-lending-capital-1600-300x169.jpg" alt="hands at desk near laptop computer, with one hand holding a pile of hundred dollar bills. Bank stocks"><div>Source: shutterstock.com/CC7</div></div>Rush Street Interactive (NYSE:<a href="https://investorplace.com/stock-quotes/rsi-stock-quote/">RSI</a>) has also been rangebound for nearly two years after initially sliding when the post-Covid boom subsided. However, I foresee significant upside ahead. RSI provides real-money online casino, online and retail sports betting, and social gaming services across the U.S., Canada, Mexico, and Latin America. Gambling and betting are booming &ndash; slower growth perhaps, but remarkable expansion as more states legalize it thanks to intense lobbying efforts. RSI is positioned to capitalize on this megatrend.



Shares have already recovered 90% over the past year, and I anticipate this trajectory will persist. <a href="https://seekingalpha.com/symbol/RSI/earnings/estimates">Revenue growth of 15% is expected in 2024</a>, while the stock trades at just 0.56x forward sales. It also goes for 30x 2025 EPS, a steal given further 31% projected growth in 2026 and ongoing rapid expansion thereafter. RSI trounced EPS estimates by 46% in 2023, and positive EPS is expected by mid-to-late 2024.



<h2>Super Group (SGHC)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/01/sports-betting-stocks-300x169.jpg" alt="sports betting stocks man celebrating winning bet on match, bookmaker app"><div>Source: Motortion Films / Shutterstock.com</div></div>Super Group (NYSE:<a href="https://investorplace.com/stock-quotes/sghc-stock-quote/">SGHC</a>) is another online sports betting and gaming operator via its Betway and Spin brands. It benefits from the same tailwinds as Rush Street, so there&rsquo;s little to add except that SGHC is another turnaround candidate that could quickly break its two-year sideways trend. Based in Guernsey, it is expanding globally. As a SeekingAlpha <a href="https://seekingalpha.com/article/4655761-super-group-canada-is-a-growth-catalyst">analyst noted</a>, SGHC should have no trouble accelerating growth to the ~10% industry rate as Canada opens online gambling.



While analysts <a href="https://seekingalpha.com/symbol/SGHC/earnings/estimates">forecast nearly 100% EPS growth over 2024-2028</a>, I believe SGHC could dramatically outdo expectations with more jurisdictions approving online betting and gambling. It exceeded EPS projections by 322% in 2023.



On the date of publication, Omor Ibne Ehsan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank">Publishing Guidelines.</a>
<div>Omor Ibne Ehsan is a writer at InvestorPlace. He is a self-taught investor with a focus on growth and cyclical stocks that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as cryptocurrencies and penny stocks. You can follow him on <a href="https://www.linkedin.com/in/omor-ibne-ehsan-56068022b/">LinkedIn</a>.</div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/03/the-7-most-undervalued-stocks-to-buy-if-you-only-have-20/">The 7 Most Undervalued Stocks to Buy if You Only Have $20</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

The 7 Most Undervalued Stocks to Buy if You Only Have $20

Warning: QFIN is at high risk of cutting its dividend

FinVolution Q4 2023: Striking A Balance Between Growth And Shareholder Returns

Qifu Technology, Inc (QFIN) has released an update. Qifu Technology, a leading Chinese Credit-Tech platform, has nearly completed its 2023 Share Re...

Qifu Technology Announces Share Buyback Achievements and Plans

American Express Company (AXP) will publish its first-quarter earnings on April 19. After missing the earnings and revenue expectations in the previous quarter, will the credit card giant be able to surpass the first quarter expectations? Read on to learn my view... American Express Company (<a href="https://stocknews.com/stock/AXP/">AXP</a>) will unveil its first-quarter results on April 19. Wall Street anticipates the credit card giant to post higher revenue and earnings in the first quarter. With AXP's earnings expected shortly, I have discussed why waiting for an opportune entry point in the stock could be wise.
For the first quarter, AXP's EPS and revenue are expected to increase 24.2% and 10.5% year-over-year to $2.98 and $15.79 billion, respectively. The company achieved record revenues and profits in 2023 and added 12.2 million new proprietary cards last year, bringing the total number of cards-in-force issued on its global network to over 140 million.
For fiscal 2024, AXP has guided revenue growth of 9% to 11% and expects EPS of between $12.65 and $13.15. The company aims to continue achieving revenue growth of 10% plus and mid-teens EPS growth in the future. AXP's stock has gained 41% over the past six months and 33% over the past year, closing the last trading session at $217.67.
Here's what you might want to consider ahead of its upcoming earnings release:
Robust Financials
AXP's total revenues net of interest expense for the fiscal fourth quarter ended December 31, 2023, rose 11.4% year-over-year to $15.80 billion. Its net interest income rose 30.7% over the prior-year quarter to $3.60 billion. The company's net income attributable to common shareholders increased 23.2% year-over-year to $1.90 billion. Also, its EPS came in at $2.62, representing an increase of 26.6% year-over-year.
For the fiscal year ended December 31, 2023, AXP's total revenues net of interest expense increased 14.5% year-over-year to $60.52 billion. Its net interest income rose 32.7% over the prior-year period to $13.13 billion. The company's net income attributable to common shareholders increased 11.5% year-over-year to $8.25 billion. Also, its EPS came in at $11.21, representing an increase of 13.8% year-over-year.
Favorable Analyst Estimates
Analysts expect AXP's fiscal 2024 EPS and revenue to increase 14.2% and 9.4% year-over-year to $12.81 and $66.22 billion, respectively. Its fiscal 2025 EPS and revenue are expected to increase 15% and 8.6% year-over-year to $14.73 and $71.92 billion, respectively.
Similarly, analysts expect AXP's EPS and revenue for the quarter ending June 30, 2024, to increase 12% and 9.8% year-over-year to $3.24 and $16.53 billion, respectively.
Mixed Profitability
AXP's 15.06% trailing-12-month net income margin is 36% lower than the 23.52% industry average. Its 55.04% trailing-12-month gross profit margin is 7.7% lower than the 59.66% industry average.
On the other hand, AXP's 31.28% trailing-12-month Return on Common Equity is 187.7% higher than the 10.87% industry average. Furthermore, the stock's 3.21% trailing-12-month Return on Total Assets is 195.3% higher than the industry average of 1.09%. Also, its 0.23x trailing-12-month asset turnover ratio is 7.5% higher than the industry average of 0.21x.
Mixed Valuation
In terms of forward non-GAAP <a href="https://www.investopedia.com/terms/p/pegratio.asp">PEG</a>, AXP's 1.29x is 6.1% higher than the 1.21x industry average. Its 17x forward non-GAAP P/E is 72.1% higher than the 9.88x industry average. Likewise, its 5.04x forward Price/Book is 406.8% higher than the 0.99x industry average.
On the other hand, in terms of forward Price/Sales, AXP's 2.37x is 0.8% lower than the 2.39x industry average.
POWR Ratings Reflect Uncertainty
AXP has an overall rating of C, equating to a Neutral in our POWR Ratings system. The <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> are calculated by considering 118 different factors, each weighted to an optimal degree.
Our proprietary rating system also evaluates each stock based on eight distinct categories. AXP has a C grade for Value, which is consistent with its mixed valuation. It has a C grade for Stability, in sync with its 1.23 beta.
AXP's mixed profitability justifies its C grade for Quality.
AXP is ranked #19 out of 45 stocks in the <a href="https://stocknews.com/category/consumer-finance/">Consumer Financial Services</a> industry. <a href="https://stocknews.com/stock/AXP/">Click here</a> to access AXP's Growth, Momentum, and Sentiment ratings.
Bottom Line
After ending fiscal 2023 on a solid note, AXP remains firmly positioned to achieve its long-term annual revenue growth of more than 10% and mid-teens EPS growth. As consumer spending continues to remain robust, the company is expected to see strong growth in billings, new account acquisitions, and processed volumes in the first quarter.
However, loans and cardmember receivables are expected to moderate through the rest of the year. Net interest income growth is also expected to moderate in fiscal 2024. Moreover, as credit card delinquencies continue to rise, write-offs are expected to increase along with higher reserve build-ups.
Given its mixed profitability, valuation, and stability, it could be wise to wait for a better entry point in the stock.
How Does American Express Company (AXP) Stack Up Against Its Peers?
AXP has an overall POWR Rating of C, equating to a Neutral rating. You may check out these A and B-rated stocks within the <a href="https://stocknews.com/category/consumer-finance/">Consumer Financial Services</a> industry: Qifu Technology, Inc. (<a href="https://stocknews.com/stock/QFIN/">QFIN</a>), Atlanticus Holdings Corporation (<a href="https://stocknews.com/stock/ATLC/">ATLC</a>), and EZCORP, Inc. (<a href="https://stocknews.com/stock/EZPW/">EZPW</a>). For exploring more Buy-rated Comsumer Financial Services stocks, <a href="https://stocknews.com/category/consumer-finance/">click here</a>.
What To Do Next?
Discover 10 widely held stocks that our proprietary model shows have tremendous downside potential. Please make sure none of these "death trap" stocks are lurking in your portfolio:
<a href="https://report.stocknews.com/free-report/10-stocks-to-sell/?formplacement=artbotad_10sell">10 Stocks to SELL NOW! &gt;</a>

<hr />
AXP shares were unchanged in premarket trading Thursday. Year-to-date, AXP has gained 16.93%, versus a 5.64% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Dipanjan Banchur</h2> <img src='https:/wp-content/uploads/2021/11/Dipanjan-Banchur_headshots_3.jpg' style="float:left; padding:5px;width:125px;">Since he was in grade school, Dipanjan was interested in the stock market. This led to him obtaining a master's degree in Finance and Accounting. Currently, as an investment analyst and financial journalist, Dipanjan has a strong interest in reading and analyzing emerging trends in financial markets.<a href="https://stocknews.com/authors/?author=dipanjan-banchur">More...</a>The post <a href=https://stocknews.com/news/axp-qfin-atlc-ezpw-american-express-axp-earnings-announcement-will-credit-card-giant/>American Express (AXP) Earnings Announcement - Will Credit Card Giant Surpass Expectations?</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

American Express (AXP) Earnings Announcement - Will Credit Card Giant Surpass Expectations?

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