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Is NASDAQ:FUTU suited for growth investing?

By Mill Chart

Last update: Sep 5, 2023

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if FUTU HOLDINGS LTD-ADR (NASDAQ:FUTU) is suited for growth investing. Investors should of couse do their own research, but we spotted FUTU HOLDINGS LTD-ADR showing up in our CANSLIM growth screen, so it may be worth spending some more time on it.

Some of the canslim metrics of NASDAQ:FUTU highlighted

  • The quarterly earnings of FUTU HOLDINGS LTD-ADR have shown a 115.0% increase compared to the previous quarter, as revealed in the recent financial report. This growth signifies positive momentum in the company's financials, pointing towards a promising upward trend
  • FUTU HOLDINGS LTD-ADR has achieved 44.36% growth in its revenue over the previous quarter, signaling positive momentum in its financial performance and potential market opportunities.
  • Over the past 3 years, FUTU HOLDINGS LTD-ADR has demonstrated 403.0% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
  • FUTU HOLDINGS LTD-ADR has achieved an impressive Return on Equity (ROE) of 15.97%, showcasing its ability to generate favorable returns for shareholders.
  • The Relative Strength (RS) of FUTU HOLDINGS LTD-ADR has consistently been strong, with a current 95.52 rating. This indicates the stock's ability to exhibit relative price outperformance and reflects its competitive strength. FUTU HOLDINGS LTD-ADR demonstrates promising potential for sustained price momentum.
  • Maintaining a Debt-to-Equity ratio of 0.15, FUTU HOLDINGS LTD-ADR demonstrates a conservative financial approach. This signifies the company's focus on minimizing debt burdens while preserving a solid equity position.
  • FUTU HOLDINGS LTD-ADR exhibits a favorable ownership structure, with an institutional shareholder ownership of 22.9%. This signifies a diverse investor base, which can contribute to a more stable and efficient market for the stock.

Zooming in on the technicals.

Every day, ChartMill assigns a Technical Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various technical indicators and properties.

We assign a technical rating of 8 out of 10 to FUTU. Although FUTU is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

  • Both the short term and long term trends are positive. This is a very positive sign.
  • FUTU is one of the better performing stocks in the Capital Markets industry, it outperforms 97% of 208 stocks in the same industry.
  • FUTU is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so FUTU is lagging the market slightly.
  • In the last month FUTU has a been trading in the 46.66 - 66.08 range, which is quite wide. It is currently trading near the high of this range.
  • Volume is considerably higher in the last couple of days, which is what you like to see during a strong movement up.
  • When comparing the yearly performance of all stocks, we notice that FUTU is one of the better performing stocks in the market, outperforming 95% of all stocks. However, this relatively good performance is mostly due to a recent big move.
  • Prices have been rising strongly lately, it may be a good idea to wait for a consolidation or pullback before considering an entry.

Our latest full technical report of FUTU contains the most current technical analsysis.

What is the full fundamental picture of NASDAQ:FUTU telling us.

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

FUTU gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 208 industry peers in the Capital Markets industry. While FUTU has a great profitability rating, there are some minor concerns on its financial health. FUTU is growing strongly while it is still valued neutral. This is a good combination!

For an up to date full fundamental analysis you can check the fundamental report of FUTU

Our CANSLIM screen will find you more ideas suited for growth investing.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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FUTU HOLDINGS LTD-ADR

NASDAQ:FUTU (7/9/2024, 8:14:39 PM)

Premarket: 67.52 -0.09 (-0.13%)

67.61

+1.96 (+2.99%)

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