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

Zacks Equity Research

Qudian (QD) closed the most recent trading day at $7.51, moving +0.13% from the previous trading session. This change lagged the S&P 500's 0.77% gain on the day. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq gained 1.06%.

Heading into today, shares of the online micro-lending company had gained 10.78% over the past month, outpacing the Finance sector's gain of 4.26% and the S&P 500's gain of 5.12% in that time.

Investors will be hoping for strength from QD as it approaches its next earnings release. On that day, QD is projected to report earnings of $0.39 per share, which would represent year-over-year growth of 14.71%.

QD's full-year Zacks Consensus Estimates are calling for earnings of $1.75 per share and revenue of $1.13 billion. These results would represent year-over-year changes of +52.17% and -2.17%, respectively.

Investors should also note any recent changes to analyst estimates for QD. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. QD is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note QD's current valuation metrics, including its Forward P/E ratio of 4.29. This valuation marks a discount compared to its industry's average Forward P/E of 7.74.

The Financial - Consumer Loans industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 16, which puts it in the top 7% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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