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, demonstrates strong technical and fundamental characteristics, making it a candidate for further analysis by growth-focused investors.
Why FUTU Fits the Minervini Trend Template
Minervini’s strategy focuses on stocks in strong uptrends with clear technical strength. FUTU meets these criteria:
- Price Above Key Moving Averages: The stock trades at $123.13, well above its 50-day ($109.31), 150-day ($100.15), and 200-day ($98.47) moving averages.
- Upward-Trending Averages: The 50-day, 150-day, and 200-day moving averages are all rising, confirming sustained momentum.
- Relative Strength: With a ChartMill Relative Strength score of 94.85, FUTU outperforms nearly 95% of stocks in the market.
- Proximity to 52-Week High: The stock is trading within 6% of its 52-week high ($130.88), indicating strong bullish momentum.
- Volatility Contraction Pattern (VCP): The technical report notes a consolidation phase with reduced volatility, suggesting a potential breakout opportunity.
High Growth Fundamentals
FUTU’s financial performance supports its growth trajectory:
- Earnings Growth: EPS grew 54.5% year-over-year (TTM), with recent quarterly EPS growth exceeding 96%.
- Revenue Growth: Revenue increased 55.4% over the past year, with quarterly sales growth at 81.1%.
- Profit Margins: The company maintains strong profitability, with a trailing twelve-month profit margin of 45.7%.
- Estimate Beats: FUTU has beaten EPS estimates in 3 of the last 4 quarters, with an average beat of 9.2%.
Technical Outlook
The ChartMill Technical Report assigns FUTU a perfect 10/10 technical rating, citing:
- Strong long-term and short-term uptrends.
- A bullish flag pattern, suggesting potential continuation.
- Support levels at $120.32 and $88.19, providing downside protection.
- Resistance near $123.56, with a breakout above this level potentially signaling further upside.
For a deeper technical breakdown, review the full technical report here.
Our High Growth Momentum + Trend Template screener lists more stocks that meet these criteria.
Disclaimer
This is not investment advice. Always conduct your own research and consider risk management before making investment decisions.