Jiayin Group: Sustainability Of Recent Earnings Growth Is Not Assured

MarketGyrations
3.15K Followers
(14min)

Summary

  • The Q1 FY2025 report included a doubling in earnings per share, which set off a rally in the stock to new multi-year highs.
  • A look at the charts suggests there is reason to refrain from jumping in on the rally even with all its momentum, at least in the short term.
  • Earnings are growing fast, and Jiayin Group is still available at low multiples, but long JFIN is not a slam dunk for a couple of reasons.
  • Long JFIN looks tempting, but it may be better to err on the side of caution to find out how sustainable the recent results are.

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Jiayin Group (NASDAQ:JFIN), a fintech company operating primarily in China, released its Q1 FY2025 report on June 4, which included, among other things, a whopping EPS increase of almost 100% QoQ. The outstanding results got a strong response from the

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