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Qudian (QD) Gains But Lags Market: What You Should Know


Qudian (QD) closed the most recent trading day at $7.03, moving +0.43% from the previous trading session. The stock lagged the S&P 500′s daily gain of 0.89%. Elsewhere, the Dow gained 0.84%, while the tech-heavy Nasdaq added 0.97%.

Heading into today, shares of the online micro-lending company had gained 14.75% over the past month, outpacing the Finance sector’s loss of 1.7% and the S&P 500′s loss of 1.68% in that time.

QD will be looking to display strength as it nears its next earnings release, which is expected to be May 20, 2019. On that day, QD is projected to report earnings of $0.39 per share, which would represent year-over-year growth of 143.75%.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.75 per share and revenue of $1.13 billion. These totals would mark changes of +52.17% and -2.17%, respectively, from last year.

Any recent changes to analyst estimates for QD should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. QD currently has a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that QD has a Forward P/E ratio of 4 right now. This represents a discount compared to its industry’s average Forward P/E of 7.92.

The Financial – Consumer Loans industry is part of the Finance sector. This group has a Zacks Industry Rank of 25, putting it in the top 10% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow QD in the coming trading sessions, be sure to utilize Zacks.com.

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