FUTU HOLDINGS LTD-ADR (NASDAQ:FUTU) - A High Growth Momentum Stock with Strong Technical Setup

FUTU HOLDINGS LTD-ADR (NASDAQ:FUTU) stands out as a high-growth momentum candidate with a strong technical setup, making it an interesting stock for investors seeking both earnings momentum and favorable chart patterns. The company, which provides digitalized financial services, has demonstrated impressive growth metrics while also exhibiting bullish technical characteristics.

Growth Momentum Highlights

FUTU’s High Growth Momentum Rating of 7 reflects strong earnings and revenue trends:

• EPS Growth (TTM): 26.3% year-over-year, with recent quarterly EPS growth exceeding 100%.
• Revenue Growth (TTM): 35.8%, with sales accelerating in recent quarters.
• Free Cash Flow Growth: A staggering 580.6% increase over the past year.
• Profit Margins: Consistently above 38%, with recent quarters showing expansion.
• Earnings Surprises: The company has beaten EPS estimates in three of the last four quarters, with an average surprise of 10.6%.

These metrics suggest FUTU is not only growing rapidly but also maintaining profitability and exceeding expectations—key traits for momentum investors.

Technical Strength & Setup Quality

FUTU’s technical profile is equally compelling, with a Technical Rating of 10 and a Setup Rating of 8. Key observations from the technical report include:

• Strong Uptrend: Both short-term and long-term trends are positive, with the stock outperforming 89% of the market over the past year.
• Consolidation Pattern: Prices have been consolidating recently, reducing volatility and forming a potential breakout setup.
• Support & Resistance: Multiple support levels exist below the current price, with resistance near $117.28. A breakout above this level could signal further upside.
• Bull Flag Pattern: The stock is currently forming a bull flag, a continuation pattern often seen before another leg higher.

Why This Combination Matters

High-growth stocks with strong technical setups often present attractive risk/reward opportunities. FUTU’s combination of accelerating earnings, expanding margins, and a bullish chart structure makes it a candidate worth monitoring.

For more high-growth momentum stocks with solid technical setups, check our High Growth Momentum Breakout Setups Screen.

Disclaimer

This is not investment advice. The observations here are based on data available at the time of writing. Always conduct your own research before making investment decisions.