(QD) Qudian - Ratings and Ratios

Qudian Inc. is a Chinese fintech company that has evolved beyond its origins as a consumer finance platform. It now offers a diverse range of services, including credit facilitation, transaction services, and innovative ventures such as ready-to-cook meal sales and educational services. This diversification strategy aims to leverage its existing user base and technological capabilities to drive growth.

The companys core business remains centered around providing installment credit services to consumers, which is reflected in its classification under the Consumer Finance sub-industry. Its ability to adapt and expand its service offerings is a testament to its agility and responsiveness to market opportunities.

Analyzing the technical data, QDs stock has shown resilience with its last price at $2.93, above its short-term and long-term moving averages (SMA20: $2.67, SMA50: $2.66, SMA200: $2.46). The Average True Range (ATR) of 0.14 indicates a relatively stable trading environment, with a volatility of around 4.90%. Given the current trend and the fact that the stock is trading above its 200-day moving average, theres a potential for continued upward momentum.

From a fundamental perspective, Qudian Inc.s market capitalization stands at $449.14M USD, with a P/E ratio of 38.86 and a forward P/E of 3.81. The significant disparity between the current and forward P/E ratios suggests expectations of substantial earnings growth. The Return on Equity (RoE) of 0.87% indicates that the company is not highly profitable relative to its equity, but this metric should be considered in the context of its growth stage and industry.

Forecasting QDs stock performance involves integrating both technical and fundamental analyses. Given the upward trend indicated by its moving averages and the potential for earnings growth suggested by its P/E ratios, theres a plausible case for QDs stock to continue its upward trajectory. However, the relatively high current P/E ratio and low RoE suggest that the stocks valuation is sensitive to growth expectations. Therefore, a forecast of $3.50 within the next 6-12 months is plausible, assuming the company continues to execute on its diversification strategy and maintains a stable financial performance. This represents a potential upside of approximately 19.5% from its current price.