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Bear of the Day: Futu Holdings (FUTU)

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With the way this market has been going, it’s been easy to beat up on certain industries. Among the most downtrodden, have to be anything related to China. If you’re a Chinese internet stock, chances are you have been beaten into oblivion lately. Perhaps, a good chunk of the bearishness is overdone. I agree with that. But, there may be stocks out there in that industry which are beaten up for good reason. And that reason is earnings going in the wrong direction.

One such stock is today’s Bear of the Day. It’s Zacks Rank # 5 (Strong Sell) Futu Holdings (FUTU - Free Report) . Futu Holdings Limited operates an online brokerage and wealth management platform in Hong Kong and internationally. The company provides trading, clearing, and settlement services; margin financing and securities lending services; and stock yield enhancement program. It also offers online wealth management services under the Futu Money Plus brand, which gives access to mutual funds, private funds, and bonds; market data and information services; and NiuNiu Community, which serves as an open forum for users and clients to share insights, ask questions, and exchange ideas.

Futu is in the Technology Services industry which ranks in the Bottom 33% of our Zacks Industry Rank. The growth numbers are strong here, but recently they have become a bit weaker. Over the last sixty days, two analysts have cut their numbers for next year. The bearish sentiment has cut our Zacks Consensus Estimate from $3.35 to $3.06. While number has dropped, it still represents 22% earnings growth for next year.

Investors looking for other stocks within the same industry have a few other names to checkout. AppLovin APP and LiveRamp RAMP are both Zacks Rank #1 (Strong Buy) stocks within the same industry.


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