FUTU HOLDINGS LTD-ADR (NASDAQ:FUTU) – A Strong Growth Stock Meeting Minervini’s Criteria

FUTU HOLDINGS LTD-ADR (NASDAQ:FUTU) has been identified as a high-growth momentum stock that aligns with Mark Minervini’s Trend Template. The company, which provides digitalized financial services through its online brokerage platform, demonstrates strong technical and fundamental characteristics that make it a compelling candidate for growth-focused investors.

Why FUTU Fits the Minervini Trend Template

Minervini’s strategy focuses on stocks exhibiting strong uptrends, supported by key technical criteria. FUTU meets these requirements:

• Price Above Key Moving Averages:

  • Current price ($111.50) is above the 50-day ($98.57), 150-day ($97.43), and 200-day ($94.18) moving averages.
  • The 50-day MA is above both the 150-day and 200-day MA, confirming bullish momentum.
  • The 200-day MA is trending upward, reinforcing long-term strength.

• Strong Relative Strength:

  • FUTU’s relative strength (88.8) indicates it outperforms nearly 89% of stocks in its sector (Capital Markets).

• Price Near 52-Week High:

  • The stock is trading within 15% of its 52-week high ($130.88) and is up 56.9% over the past year.

• Support and Resistance Levels:

  • Support zones are well-defined, with the nearest at $109.91, providing a clear stop-loss level.
  • Resistance is seen around $116.31, with potential for further upside if breached.

High Growth Fundamentals

FUTU’s growth metrics make it attractive for momentum investors:

• Earnings Growth:

  • EPS (TTM) stands at $6.24, up 54.5% year-over-year.
  • Quarterly EPS growth is strong at 96.4% compared to the same quarter last year.

• Revenue Expansion:

  • Revenue (TTM) grew 35.8% year-over-year.
  • Quarterly sales growth surged 81.1%, indicating accelerating demand.

• Profitability:

  • Profit margins remain robust at 42.2% in the latest quarter, up from 38.4% in the prior quarter.
  • Free cash flow per share ($28.21) has increased by 580.6% over the past year.

• Positive Revisions:

  • Analysts have raised next-year EPS estimates by 4.1% and revenue forecasts by 17.7% over the past three months.

Technical Outlook

FUTU’s technical rating of 10/10 reflects its strong uptrend, while the setup score of 8/10 suggests a consolidation phase with potential for a breakout. The stock has shown resilience, trading near the upper end of its recent range ($100.50–$118.52).

For a deeper technical breakdown, review the full technical report here.

Our High Growth Momentum + Trend Template screener lists more high-growth stocks meeting these criteria.

Disclaimer

This is not investment advice. Always conduct your own analysis before making investment decisions.