Is NASDAQ:FUTU a Fit for Growth Investing Strategies?

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if FUTU HOLDINGS LTD-ADR (NASDAQ:FUTU) is suited for growth investing. Investors should of course do their own research, but we spotted FUTU HOLDINGS LTD-ADR showing up in our CANSLIM growth screen, so it may be worth spending some more time on it.

Some of the canslim metrics of NASDAQ:FUTU highlighted

• In the most recent financial report, FUTU HOLDINGS LTD-ADR reported a 20.05% increase in quarterly earnings compared to the previous quarter. This notable growth indicates positive momentum in the company's financials, suggesting an upward trend
• FUTU HOLDINGS LTD-ADR has demonstrated strong q2q revenue growth of 29.65%, suggesting a favorable trend in the company's financials and indicating the potential for continued expansion.
• The 3-year EPS growth of FUTU HOLDINGS LTD-ADR (69.04%) highlights the company's ability to consistently improve its earnings performance and suggests a positive outlook for future profitability.
• FUTU HOLDINGS LTD-ADR has a healthy Return on Equity(ROE) of 17.43%. This demonstrates the company's efficient utilization of capital and indicates its commitment to driving profitability.
• FUTU HOLDINGS LTD-ADR has exhibited strong Relative Strength(RS) in recent periods, with a current 88.18 rating. This indicates the stock's ability to outperform the broader market and reflects its competitive position. FUTU HOLDINGS LTD-ADR shows promising potential for continued price momentum.
• With a Debt-to-Equity ratio at 0.23, FUTU HOLDINGS LTD-ADR showcases its prudent financial management. The company's balanced approach between debt and equity reflects its commitment to maintaining a stable capital structure.
• With institutional shareholders at 27.17%, FUTU HOLDINGS LTD-ADR demonstrates a healthy ownership distribution. This reflects a mix of institutional and individual investors, creating a market environment that may foster increased trading activity and price discovery.

Insights from Technical Analysis

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple technical indicators and properties.

Taking everything into account, FUTU scores 5 out of 10 in our technical rating. In the last year, FUTU was one of the better performers, but we do observe some doubts in the very recent evolution.

• FUTU is one of the better performing stocks in the Capital Markets industry, it outperforms 82% of 220 stocks in the same industry.
• The short term trend is negative, but the long term trend is still positive. So although the long term is still positive, this may be a trend turning.
• Looking at the yearly performance, FUTU did better than 88% of all other stocks. However, this overall performance is mostly based on the strong move around 7 months ago.
• FUTU is currently trading in the middle of its 52 week range. The S&P500 Index however is currently trading near new highs, so FUTU is lagging the market.

Our latest full technical report of FUTU contains the most current technical analsysis.

What is the full fundamental picture of NASDAQ:FUTU telling us.

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.

Overall FUTU gets a fundamental rating of 6 out of 10. We evaluated FUTU against 220 industry peers in the Capital Markets industry. While FUTU has a great profitability rating, there are quite some concerns on its financial health. FUTU is not overvalued while it is showing excellent growth. This is an interesting combination.

Check the latest full fundamental report of FUTU for a complete fundamental analysis.

More ideas for growth investing can be found on ChartMill in our CANSLIM screen.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.