FUTU HOLDINGS LTD-ADR (NASDAQ:FUTU) – A Strong Growth Stock with a Technical Breakout Pattern

FUTU HOLDINGS LTD-ADR (NASDAQ:FUTU) was identified by our screener as a strong growth stock with a favorable technical setup. The company combines solid fundamental growth metrics with a bullish chart pattern, making it worth a closer look.

Fundamental Strengths

• Strong Growth: FUTU has demonstrated impressive revenue and earnings growth, with revenue increasing by 35.79% over the past year and EPS growing by 26.28%. Long-term growth is even more notable, with a 66.52% annual revenue growth rate over the past five years.
• High Profitability: The company scores a 9/10 in profitability, with strong margins—82.01% Gross Margin and 48.72% Operating Margin, outperforming most peers in the Capital Markets industry.
• Reasonable Valuation: Despite strong growth, FUTU is not excessively priced. Its Forward P/E of 16.22 is below the S&P 500 average, and its PEG ratio suggests the stock is reasonably valued relative to expected earnings growth.

Technical Setup

• Bullish Trend: Both short-term and long-term trends are positive, with the stock trading near the upper end of its 52-week range.
• Breakout Potential: A bull flag pattern has formed, indicating a potential continuation of the upward trend. Resistance is minimal above current levels, while support sits near $111.75.
• Volume & Momentum: Recent consolidation has occurred on lower volume, a positive sign, and large players have shown increasing interest in the stock.

Our Strong Growth Stocks with Good Technical Setup Ratings screener lists more stocks with similar characteristics.
For a deeper dive, review the full fundamental report and technical analysis of FUTU.

Disclaimer

This is not investment advice. The observations are based on data available at the time of writing, and market conditions can change. Always conduct your own research before making investment decisions.