Valuation in Focus: X Financial (:XYF)

Honing in on the valuation of X Financial (:XYF), we can take a look at several ratios. One of the quickest ways to determine the projected value of a stock is the price to earnings growth, or PEG ratio. This formula was popularized by Peter Lynch and according to his calculations, a stock which is fairly valued will have a price to earnings ratio equal to its rate of growth. Simply put, a stock with a PEG ratio of 1 would be considered fairly valued.

A stock with a ratio of under 1.0 would be undervalued and a stock with a PEG over 1.0 would be considered over valued. X Financial currently has a PEG ratio of 0.10.Traders may already have a favorite method for applying technical analysis. Active traders are typically concerned with shorter-term price movements when trading shares. Entry and exit points tend to be way more important for traders who are looking to capitalize on stock market trends. Some traders may opt to only use technical analysis when picking stocks, while others will also incorporate company fundamentals when doing research. Of course, there is no one foolproof method for trading the markets. Many technical investors will still opt to familiarize themselves with the fundamentals before diving deeper into the technical signals. Longer-term investors might not be as concerned with day to day price fluctuations while short-term traders may not want to miss out on any significant price swings. Whatever trading strategy is applied, investors may still want to try to get a sense of the overall picture before making the trade.

Most importantly investors want to know where the stock is headed from here. In order to get a sense of Wall Street sentiment, we can look to equity research analyst estimates. On a one to five ratings scale where 1.0 indicates a Strong Buy, 2.0 indicates a Buy, 3.0 a Hold, 4.0 a Sell and 5.0 a Stong Sell. X Financial (:XYF) currently has an average analyst recommendation of 3.00 according to analysts. This is the average number based on the total brokerage firms taken into consideration by Beta Systems Research. The same analysts have a future one-year price target of $6.50 on the shares.

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In addition to sell-side rational, we can also take a look at some technical indicators. The stock is currently -6.86% away from its 50-day simple moving average and -42.92% away from the 200 day average. Based on a recent trade, the shares are -73.59% away from the 52-week high and 5.67% from the 52-week low. The RSI (Relative Strength Index), which shows price strength by comparing upward and downward close to close movements.

An RSI approaching 70 is typically deemed to be nearing overbought status and could be ripe for a pullback. Alternatively an RSI nearing 30 indicates that the stock could be getting oversold and might be considered undervalued. The RSI for X Financial(:XYF) currently stands at 41.52.

Stock Performance
X Financial has posted trailing 12 months earnings of $0.86 per share. The company has seen a change of 158.20% earnings per share this year. Analysts are predicting 37.77% for the company next year. The firm is yielding 17.90% return on assets and 26.60% return on equity.

Technical investors generally rely heavily on price charts to help spot potential trades. Chartists will often try to interpret past movements with the goal of trying to gauge the future share price movements. Some charts can be extremely complex while others may be quite simple. Many traders will spend countless hours studying the signals to try to spot optimal entry and exit points. There are many different indicators that technical analysts can follow. Some traders will use standalone signals, and others will use a robust combination. Getting into the nitty-gritty of charting can be overwhelming for the beginner. Taking the time to completely understand what the charts are saying can be the difference between a big win and a major loss.