Introduction: Is QFIN Stock a Good Buy in 2025?
QFIN stock, representing 360 DigiTech, Inc. (NASDAQ: QFIN), is drawing growing attention from investors interested in China’s fast-evolving fintech sector. The company, a data-driven technology platform, connects financial institutions with borrowers and leverages artificial intelligence for credit decision-making. With its expanding loan facilitation services and strong revenue growth, many are asking: Is QFIN stock a good buy in 2025?
This article explores the company’s business fundamentals, financial performance, growth potential, and associated risks to help you decide whether QFIN deserves a spot in your portfolio this year.
1. Company Overview & Business Model
360 DigiTech operates as a leading Chinese fintech company offering loan facilitation, risk management, and post-loan services. Its AI-based credit scoring models and strong partnerships with institutional lenders set it apart. QFIN has two primary revenue models:
- Loan facilitation services
- Credit-driven services (capital-heavy model)
Its tech infrastructure also supports new ventures such as SaaS-based financial solutions for small banks and consumer finance arms.
2. Recent Financial Performance (FY 2023 Highlights)
Qifu Technology delivered strong results for the full year ended December 31, 2023, showcasing its operational excellence and continued business growth:
- Total Revenue: RMB 16.7 billion (~USD 2.31 billion), up 11.5% year-over-year
- Net Income (Non-GAAP): RMB 5.0 billion (~USD 692 million)
- Diluted EPS (Non-GAAP): RMB 31.23 (~USD 4.32), indicating solid shareholder returns
- Operating Margin: 41.8%, reflecting efficient cost management
- Loan Volume Facilitated: RMB 317.6 billion (~USD 43.8 billion)
QFIN’s strong profitability, consistent top-line growth, and improved operating efficiency reaffirm its position as a leading fintech platform in China. Despite a dynamic regulatory environment, the company has shown robust adaptability and continued to gain traction among both institutional partners and consumers.
3. Stock Performance & Valuation Metrics
- Current Price: $20.35
- 52-Week Range: $17.76 – $48.94
- 52-Week High Chg:-6.27%
- 52-Week Low Chg: +158.28%
- S&P 500 52-Week Chg: 8.94%
- Market Cap: $3.28 billion
- P/E Ratio: 8.08
When compared to competitors like FinVolution (FINV) and LexinFintech (LX), QFIN stock looks attractively priced, with a compelling valuation, solid dividend, and strong fundamentals.
4. Growth Drivers for QFIN Stock in 2025
- Expansion in AI-driven lending
QFIN continues to expand its AI-powered credit scoring and loan approval system, which reduces default risk and boosts scalability. - Strategic partnerships with financial institutions
The company maintains close collaboration with over 120 financial institutions, providing it a deep credit supply pipeline. - Growth in consumption-based lending in China
As China’s middle class grows and consumption rebounds post-pandemic, QFIN is well-positioned to benefit. - Shareholder value creation
With a history of buybacks and a healthy dividend payout, QFIN stock is a potential value play in 2025.
5. Analyst Ratings & Price Predictions
Wall Street Sentiment: Analyst Ratings Remain Bullish on QFIN
Analyst confidence in Qifu Technology (QFIN) continues to remain strong in 2025, with leading investment banks reaffirming their bullish outlook:
- On March 26, 2025, Emma Xu of BofA Securities maintained a Buy rating, raising the price target from $50.66 to $52.70, signaling continued upside based on the company’s strong fundamentals and earnings momentum.
- On November 21, 2024, Judy Zhang of Citigroup reiterated a Buy rating, increasing the price target from $31.44 to $37.50, reflecting confidence in QFIN’s consistent revenue growth and improving margins
With an average target price showing double-digit upside, these updates suggest Wall Street views QFIN stock as undervalued and a strong candidate for long-term gains in the fintech space.
QFIN Stock Price Forecast: What to Expect in the Next 2 Weeks
Based on recent predictive modeling:
- Closed Price: $45.87 (as of 2 weeks ago), reflecting a slight dip of -0.33%.
- Predicted Price (2 Weeks Ahead): $48.98 — indicating a potential upside of 6.77%.
- Upper Price Estimate: $51.18 — a possible gain of 11.57%, suggesting bullish momentum under favorable conditions.
- Lower Price Estimate: $46.97 — a more conservative forecast reflecting a 2.39% increase from current levels.
These projections highlight short-term growth potential for QFIN stock, reinforcing the view that it may be poised for an upward trend based on current market dynamics and investor sentiment.
6. Risks & Challenges
- Regulatory risks in China. Like all Chinese fintechs, QFIN operates under evolving financial regulations. Sudden policy shifts could impact growth.
- Geopolitical uncertainty. Ongoing U.S.-China tensions and risks of delisting from U.S. exchanges present headwinds for international investors.
- Dependency on macroeconomic trends. A slowdown in consumer lending or rising defaults in China could pressure revenue.
7. Investor Sentiment Analysis for QFIN
Investor sentiment around Qifu Technology, Inc. (QFIN) has shown notable improvement across all timeframes, reflecting growing optimism in the market.
- One-Week Sentiment: The current sentiment score stands at 66.67, based on insights from 11 social media posts, 1 news article, and 1 opinion piece. This marks an increase of 6.67 points from last week’s score of 60, with sentiment fluctuating between 51.67 and 72.73.
- One-Month Sentiment: Over the past month, QFIN’s sentiment score has surged to 66.04, up 51.75 points from 14.29. This metric is based on 39 social media mentions, 12 news articles, and 1 opinion article, with sentiment ranging between 14.29 and 66.75.
- Six-Month Sentiment: Over the longer term, sentiment has steadily strengthened. The score now sits at 60.29, up 13.04 points from 47.25 six months ago. This is based on 145 social media posts, 25 news articles, and 4 opinion pieces, with a range of 46.68 to 60.45.
These rising sentiment scores suggest increasing confidence among retail and institutional investors in QFIN’s growth trajectory and market position.
8. Institutional Ownership Insights
Institutional investors show a strong vote of confidence in Qifu Technology, Inc. (QFIN), with approximately 70.09% of outstanding shares held by financial institutions.
Among the top stakeholders:
- Banque Cantonale Vaudoise holds 206,000 shares, valued at around $3.80 million, representing a 0.13% stake in the company.
- Tiger Pacific Capital LP maintains a significantly larger position, owning 2.28 million shares worth roughly $41.97 million, translating to a 1.42% stake.
This level of institutional backing highlights the broader market’s positive sentiment and long-term conviction in QFIN’s growth potential.
The Verdict: Should You Buy, Hold, or Sell QFIN Stock in 2025?
Bullish Case:
- Strong earnings and profit margins
- Low P/E ratio and high dividend yield
- Expanding AI-driven fintech solutions
Bearish Case:
- Regulatory and delisting risks
- Exposure to macroeconomic cycles
Final Recommendation:
- Buy: For investors seeking undervalued fintech stocks with strong fundamentals and generous dividend yield.
- Hold: If you’re already in and waiting for the stock to break past resistance levels.
- Avoid: If you’re risk-averse or hesitant about Chinese regulatory exposure.
Conclusion
So, is QFIN stock a good buy in 2025? With robust financials, attractive valuation metrics, and positive analyst sentiment, 360 DigiTech offers strong upside for investors who can manage geopolitical and regulatory risks. It stands out as a potentially undervalued gem in the global fintech space.
