FUTU HOLDINGS LTD-ADR (NASDAQ:FUTU) – A Strong Contender for CANSLIM Investors

FUTU HOLDINGS LTD-ADR (NASDAQ:FUTU) stands out as a potential candidate for investors following the CANSLIM strategy. The company, a digitalized financial services provider, meets several key criteria of the CANSLIM system, including strong earnings growth, high relative strength, and solid profitability. Below, we examine why FUTU aligns with this approach.

Key CANSLIM Criteria Met by FUTU

• C – Current Earnings & Sales Growth: FUTU reported a 103.95% year-over-year EPS growth and an 86.77% revenue growth for the latest quarter, well above the CANSLIM minimum thresholds.
• A – Annual Earnings Growth: The company has a 3-year EPS growth rate of 28.79%, demonstrating consistent expansion.
• N – New Highs & Innovation: As a fintech firm, FUTU operates in a high-growth sector, benefiting from digital brokerage trends.
• L – Market Leadership: With a relative strength of 84, FUTU outperforms 84% of all stocks, indicating strong momentum.
• I – Institutional Sponsorship: Institutional ownership stands at 38.67%, leaving room for increased institutional interest.
• Financial Health: FUTU maintains a debt-to-equity ratio of 0.30, well below the CANSLIM-recommended maximum of 2.

Technical & Fundamental Overview

• Technical Rating (8/10): FUTU’s short and long-term trends are positive, and it trades near the upper end of its recent range. However, volatility suggests waiting for a consolidation before entry.
• Fundamental Rating (7/10): The company excels in profitability (ROE of 19.43%) and growth but has minor concerns regarding financial health.

For a deeper look, review the full technical analysis and fundamental report.

Our CANSLIM High Growth screener lists more stocks matching these criteria and is updated daily.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should conduct your own analysis before making investment decisions.