QFIN Gains 117% in a Year and Outpaces Industry: Time to Buy the Stock?

Core Insights - Qifu Technology, Inc. (QFIN) stock has experienced remarkable growth of 117% over the past year, significantly outperforming the industry growth of 52.8% and the Zacks S&P 500 composite's rise of 12.3% [1][4] - The company has also outperformed its competitors, Priority Technology (PRTH) and Acuity (AYI), which gained 90.8% and 6.9% respectively during the same period [4] Performance Analysis - In the past six months, QFIN has gained 11.6%, surpassing the industry's marginal growth, while PRTH and AYI have decreased by 10% and 15.23% respectively [4] - QFIN's stock trades at a forward earnings multiple of 5.6X, well below the industry's average of 24.3X [7][12] AI Integration and Growth Strategy - Qifu Technology leverages AI for user acquisition and volume growth, with 74% of graphics and 27% of videos generated by AI technology, resulting in a 10% reduction in average cost per credit line user and a 9% improvement in ROI [6][9] - The company's AI-Plus credit strategy, launched in early 2025, aims to enhance core credit processes through an AI agent platform [9] Financial Position - QFIN reported strong cash reserves of $1.9 billion and low current debt of $168 million, resulting in a current ratio of 3.08, which exceeds the industry average of 1.84 [10] - The Zacks Consensus Estimate for QFIN's 2025 revenues is $2.6 billion, indicating a 7.6% growth from the previous year, with earnings estimated at $7.09 per share, reflecting a 25.3% increase [14] Investment Recommendation - Given the company's strong performance, robust liquidity position, and discounted valuation, it is recommended for investors to consider adding QFIN shares to their portfolios [15][16]