360 DigiTech, Inc.: Following the Big Money
So, what’s Big Money? That’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.
Smart money managers are always looking for the next hot stock. And 360 DigiTech has many fundamental qualities that are attractive.
This sets up well for the stock going forward. But how the stock trades is what points to more upside. The Big Money has been crazy about the shares this past year.
You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.
That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all of the big money signals QFIN has made the last year.
The last few days has seen Big Money activity, too. Each green bar signals big trading volumes as the stock ramped in price:
Source: www.mapsignals.com, End of day data sourced by Tiingo.com
In 2021 alone, QFIN made 22 of these rare signals. Generally speaking, that means more upside is ahead.
Now, let’s check out a few technicals grabbing my attention:
- 1 year outperformance vs. market (+222% vs. SPY)
- 1 year outperformance vs. Financials ETF (+197% vs. XLF)
Outperformance is huge for leading stocks.
Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, 360 DigiTech has been growing sales at a breakneck pace. Take a look:
- 3-year revenue growth rate (+504.91%)
- 3-year earnings growth rate (-761%)
Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.
In fact, 360 DigiTech has been a top-rated stock at my research firm, MAPsignals, multiple times the last year. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
QFIN has been a constant Big Money favorite since 2021. And since its first appearance on this report, it’s up +129%:
Source: www.mapsignals.com, End of day data sourced from Tiingo.com
Let’s tie this all together.
360 DigiTech continues to fire on all cylinders technically and fundamentally. With many high-quality growth stocks beginning to breakout with Big Money, I like the long-term story of the stock.
The Bottom Line
The QFIN rally likely has further upside. Big money buying in the shares is signaling to take notice. Shares could be positioned for a bounce soon. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a growth-oriented portfolio.
Disclosure: the author holds no position in QFIN at the time of publication.
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Learn more about the MAPsignals process here.