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Is Futu Holdings (FUTU) Stock Undervalued Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Futu Holdings (FUTU - Free Report) . FUTU is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 14.66. This compares to its industry's average Forward P/E of 21.77. Over the past 52 weeks, FUTU's Forward P/E has been as high as 26.04 and as low as 10.30, with a median of 14.22.
We also note that FUTU holds a PEG ratio of 0.80. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. FUTU's PEG compares to its industry's average PEG of 1.13. Over the last 12 months, FUTU's PEG has been as high as 1.66 and as low as 0.45, with a median of 0.78.
Another valuation metric that we should highlight is FUTU's P/B ratio of 3.97. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 6.05. Over the past 12 months, FUTU's P/B has been as high as 4.86 and as low as 2.22, with a median of 3.21.
Finally, investors should note that FUTU has a P/CF ratio of 20.32. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 43.23. Within the past 12 months, FUTU's P/CF has been as high as 31.19 and as low as 14.15, with a median of 19.29.
These are just a handful of the figures considered in Futu Holdings's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that FUTU is an impressive value stock right now.
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Is Futu Holdings (FUTU) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Futu Holdings (FUTU - Free Report) . FUTU is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 14.66. This compares to its industry's average Forward P/E of 21.77. Over the past 52 weeks, FUTU's Forward P/E has been as high as 26.04 and as low as 10.30, with a median of 14.22.
We also note that FUTU holds a PEG ratio of 0.80. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. FUTU's PEG compares to its industry's average PEG of 1.13. Over the last 12 months, FUTU's PEG has been as high as 1.66 and as low as 0.45, with a median of 0.78.
Another valuation metric that we should highlight is FUTU's P/B ratio of 3.97. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 6.05. Over the past 12 months, FUTU's P/B has been as high as 4.86 and as low as 2.22, with a median of 3.21.
Finally, investors should note that FUTU has a P/CF ratio of 20.32. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 43.23. Within the past 12 months, FUTU's P/CF has been as high as 31.19 and as low as 14.15, with a median of 19.29.
These are just a handful of the figures considered in Futu Holdings's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that FUTU is an impressive value stock right now.