Should you consider FUTU HOLDINGS LTD-ADR (NASDAQ:FUTU) for growth investing?

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 course 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.

What matters for canslim investors.

• The EPS of FUTU has exhibited growth from one quarter to another (Q2Q), with a 104.0% increase. This underscores the company's ability to generate higher earnings and improve its financial standing.
• FUTU has achieved significant quarter-to-quarter (Q2Q) revenue growth of 86.77%, signaling its ability to capture market opportunities and drive top-line expansion. This growth underscores the company's effective execution and its potential for continued success.
• FUTU has experienced 28.79% growth in EPS over a 3-year period, demonstrating its ability to generate sustained and positive earnings momentum.
• The Return on Equity (ROE) of FUTU stands at 19.43%, reflecting the company's strong profitability and effective utilization of shareholder equity. This metric signifies the company's ability to generate returns for its investors.
• The Relative Strength (RS) of FUTU has been consistently solid, with a current 96.6 rating. This highlights the stock's ability to exhibit sustained price strength and signifies its competitive advantage.
• A Debt/Equity ratio of 0.3 indicates that FUTU is leveraging debt effectively without excessive risk.
• FUTU demonstrates a balanced ownership structure, with institutional shareholders at 38.67%. This indicates a diverse investor base, which can contribute to price stability and potential future growth.

Technical Analysis Observations

Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 6 out of 10 to FUTU. This is due to a consistent overall performance, although we see some doubts in the very recent evolution. In the medium time frame things are still looking good.

• When comparing the yearly performance of all stocks, we notice that FUTU is one of the better performing stocks in the market, outperforming 96% of all stocks.
• FUTU is part of the Capital Markets industry. There are 224 other stocks in this industry. FUTU outperforms 98% of them.
• The short term trend is negative, but the long term trend is still positive. So although the long term is still positive, this may be a trend turning.
• FUTU is currently trading in the middle of its 52 week range. This is in line with the S&P500 Index, which is also trading in the middle of its range.

Check the latest full technical report of FUTU for a complete technical analysis.

How does the complete fundamental picture look for FUTU?

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

Overall FUTU gets a fundamental rating of 6 out of 10. We evaluated FUTU against 224 industry peers in the Capital Markets industry. FUTU scores excellent on profitability, but there are 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

More growth stocks can be found in our CANSLIM screen.

Disclaimer

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.