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

FUTU HOLDINGS LTD-ADR (NASDAQ:FUTU) was identified by our screener as a strong growth stock with a favorable technical setup. The company combines high growth metrics with solid profitability and a promising chart pattern, making it an interesting candidate for investors seeking growth opportunities.

Growth and Profitability

• Strong Earnings Growth: FUTU has demonstrated impressive earnings growth, with EPS increasing by 54.46% over the past year and an average annual growth of 90.12% over the last five years.
• Revenue Expansion: Revenue grew by 35.79% in the past year, with a five-year average growth rate of 66.52%. Future revenue is expected to rise by 20.67% annually.
• High Profit Margins: The company maintains a Profit Margin of 40.05%, outperforming 82.76% of its industry peers. Its Operating Margin of 48.72% is also among the best in the sector.

Financial Health and Valuation

• Solid Balance Sheet: FUTU has a Debt-to-Equity ratio of 0.30, indicating a conservative capital structure. Its Current Ratio of 1.19 suggests adequate liquidity.
• Reasonable Valuation: With a P/E ratio of 17.87, FUTU trades in line with industry averages. Its Forward P/E of 14.01 is below the S&P 500 average, suggesting potential upside.

Technical Setup

• Positive Trends: Both short-term and long-term trends are bullish, with the stock trading near the upper end of its 52-week range.
• Support and Resistance: Key support levels are found between $108.73-$109.91, while resistance sits near $116.31. A breakout above resistance could signal further upside.
• Low Volatility Consolidation: Recent price action shows consolidation with reduced volatility, often a precursor to a breakout.

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

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