FUTU HOLDINGS LTD-ADR (NASDAQ:FUTU) – A Strong CANSLIM Candidate with Impressive Growth Metrics

FUTU HOLDINGS LTD-ADR (NASDAQ:FUTU) stands out as a compelling candidate for investors following the CANSLIM strategy. The company, which provides digitalized financial services through its Futu NiuNiu platform, meets several key criteria of the CANSLIM system, including strong earnings growth, high relative strength, and solid profitability.

Why FUTU Fits the CANSLIM Strategy

• Earnings Growth (C & A Criteria): FUTU reported a 96.4% year-over-year EPS growth for the most recent quarter, far exceeding the CANSLIM minimum of 20%. Revenue growth was equally strong at 81.1%. Over the past three years, EPS has grown at an annualized rate of 28.8%, well above the 25% threshold.
• Relative Strength (L Criteria): With a ChartMill Relative Strength score of 83.8, FUTU outperforms 83% of all stocks, indicating strong market leadership.
• Profitability (A Criteria): The company’s Return on Equity (ROE) stands at 19.4%, reflecting efficient use of shareholder capital.
• Debt Management (S Criteria): FUTU maintains a low debt-to-equity ratio of 0.30, suggesting a conservative balance sheet.
• Institutional Sponsorship (I Criteria): Institutional ownership is at 38.7%, leaving room for further institutional accumulation.

Technical and Fundamental Highlights

• Technical Rating (8/10): FUTU’s long-term trend remains positive, though short-term momentum has weakened recently. The stock is consolidating near key support levels, which could present an opportunity if the broader market remains favorable.
• Fundamental Rating (7/10): FUTU excels in growth and profitability but has minor concerns regarding financial health, particularly its Altman-Z score.

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 investment advice. Always conduct your own research before making investment decisions.