Qifu Technology, Inc. (QFIN) Upgraded to Strong Buy: Here's What You Should Know

Core Viewpoint - Qifu Technology, Inc. (QFIN) has received an upgrade to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is primarily driven by changes in a company's earnings picture, specifically the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - The Zacks rating upgrade for Qifu Technology indicates a positive outlook on its earnings, which could positively affect its stock price [4][6]. Impact of Earnings Estimates on Stock Prices - There is a strong correlation between changes in earnings estimates and near-term stock price movements, with institutional investors playing a role in this relationship [5]. - Rising earnings estimates and the subsequent rating upgrade suggest an improvement in Qifu Technology's underlying business, which should lead to higher stock prices [6]. Importance of Earnings Estimate Revisions - Empirical research supports the idea that tracking earnings estimate revisions can be beneficial for investment decisions, highlighting the effectiveness of the Zacks Rank stock-rating system [7]. - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. Specifics on Qifu Technology's Earnings Estimates - Qifu Technology is projected to earn $7.11 per share for the fiscal year ending December 2025, with no year-over-year change expected [9]. - Over the past three months, the Zacks Consensus Estimate for Qifu Technology has increased by 2.6% [9]. Conclusion on Zacks Rating System - The Zacks rating system maintains a balanced distribution of "buy" and "sell" ratings across its universe of over 4,000 stocks, with only the top 5% receiving a "Strong Buy" rating [10]. - The upgrade of Qifu Technology to a Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [11].