Is NASDAQ:FUTU suited for CANSLIM investing?

In this article we will dive into FUTU HOLDINGS LTD-ADR (NASDAQ:FUTU) as a possible candidate for growth investing. Investors should always do their own research, but we noticed FUTU HOLDINGS LTD-ADR showing up in our CANSLIM growth screen, which makes it worth to investigate a bit more.

Some of the canslim metrics of NASDAQ:FUTU highlighted

• FUTU HOLDINGS LTD-ADR has shown positive momentum in its earnings per share (EPS) on a quarter-to-quarter (Q2Q) basis, with a 20.05% increase. This reflects the company's successful execution of its business strategies and its commitment to delivering improved financial results.
• 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.
• Over the past 3 years, FUTU HOLDINGS LTD-ADR has demonstrated 69.04% growth in EPS, signifying its positive financial trajectory and potential 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 93.04 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 current Debt-to-Equity ratio at 0.23, FUTU HOLDINGS LTD-ADR showcases its disciplined capital structure. The company's prudent management of debt obligations contributes to its financial stability and long-term sustainability.
• The ownership composition of FUTU HOLDINGS LTD-ADR reflects a balanced investor ecosystem, with institutional shareholders owning 36.4%. This indicates a broader market participation and potential for increased trading liquidity.

Technical Analysis Observations

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

Overall FUTU gets a technical rating of 9 out of 10. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, FUTU is showing a nice and steady performance.

• Both the short term and long term trends are positive. This is a very positive sign.
• Looking at the yearly performance, FUTU did better than 93% of all other stocks. On top of that, FUTU also shows a nice and consistent pattern of rising prices.
• FUTU is part of the Capital Markets industry. There are 222 other stocks in this industry. FUTU outperforms 95% of them.
• In the last month FUTU has a been trading in the 73.40 - 97.23 range, which is quite wide. It is currently trading near the high of this range.
• Volume is considerably higher in the last couple of days, which is what you like to see during a strong movement up.
• FUTU is currently trading in the middle of its 52 week range. The S&P500 Index however is trading in the upper part of its 52 week range, so FUTU is lagging the market slightly.
• Prices have been rising strongly lately, it may be a good idea to wait for a consolidation or pullback before considering an entry.

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

Zooming in on the fundamentals.

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

Overall FUTU gets a fundamental rating of 6 out of 10. We evaluated FUTU against 222 industry peers in the Capital Markets industry. FUTU scores excellent on profitability, but there are concerns on its financial health. FUTU is not overvalued while it is showing excellent growth. This is an interesting combination.

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

More growth stocks can be found in our CANSLIM screen.

Keep in mind

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.