Bullish Signal on Hong Kong Fintech Firm has High Probability of Success
With current market conditions and with lockdowns around the globe, more and more people are working from home. It also appears more and more people are trading from home. The number of short-term traders and the hype around certain stocks is starting to remind me of 1999 and 2000. I hope the outcome is different this time around, but the demand for financial technology that helps people trade online is growing.
One firm in Hong Kong has seen tremendous earnings and revenue growth as a result of the trend. Futu Holdings (FUTU) and its subsidiaries provide investing services for Hong Kong, US and China Connect stocks, to individual investors through its proprietary one-stop digital platform, Futubull.
The company has seen earnings grow by 111% per year over the last three years while revenue has grown by 96% per year. Earnings jumped 1,800% in the third quarter as revenue jumped 276%. The stock itself is up over 300% so far in 2020, and that’s after a 20% pullback in the last month. The recent pullback brought the stock down to a support level in the $40.50 area—the high from earlier this year.
The stock fell to the support in early December and then bounced a little before dropping back down to retest the support. Now it looks as if the stock is turning higher again and Tickeron’s Trend Prediction Engine received a bullish signal on the stock on December 17. The signal shows that the odds of success are 90% for a bullish move over the next month.
The strong revenue growth has given Futu a high SMR Rating on Tickeron’s fundamental ratings and the huge jump in earnings has created a great P/E Growth Rating. The SMR Rating is a 16 and P/E Growth Rating is a 7. That means the company is in the top 16th percentile and the 7th percentile in these two categories.
On the technical side, the daily stochastic indicators were in oversold territory for a few days before making a bullish crossover and moving out of oversold territory on December 17. The stock also got a bullish signal from the Momentum Indicator on December 18.
The full outlook from Tickeron shows there are some concerns on both the fundamental and technical sides.
FUTU sees MACD Histogram just turned negative
FUTU saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on July 03, 2025. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 41 instances where the indicator turned negative. In of the 41 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for FUTU moved out of overbought territory on June 17, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 31 similar instances where the indicator moved out of overbought territory. In of the 31 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 49 cases where FUTU's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on July 01, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on FUTU as a result. In of 83 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where FUTU declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
FUTU broke above its upper Bollinger Band on June 16, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
Following a +1 3-day Advance, the price is estimated to grow further. Considering data from situations where FUTU advanced for three days, in of 312 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 182 cases where FUTU Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. FUTU’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 67, placing this stock slightly better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.522) is normal, around the industry mean (5.755). P/E Ratio (14.521) is within average values for comparable stocks, (35.318). FUTU's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (2.610). FUTU has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.031). P/S Ratio (6.207) is also within normal values, averaging (82.424).
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General Information
a technology company, which engages in online brokerage services and margin financing services for clients in Hong Kong and China
Industry InvestmentBanksBrokers
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