Here’s why Futu Holdings stock is on the verge of a rebound this week

Futu Holdings stock price jumped by over 7% on Tuesday. This rebound could continue this week as the company releases its earnings, which are expected to demonstrate strong revenue and profitability growth. It was trading at $153, down by 25% from its highest point in 2025.

Futu Holdings to publish financial results

Futu is a top Chinese fintech company that runs popular Robinhood-like Moomoo Financial, Futu Clearing, and Shensi Network. Most of its business is in the United States, Hong Kong, Mainland China, and Singapore.

Futu Holdings will publish its financial results on Thursday, and analysts expect them to show that its business continued thriving. Its most recent results showed that its funded account rose by 43% to over 3.1 million, while its brokerage accounts jumped to over 5.6 million.

The results also showed that other parts of its business are doing well. Its client accounts jumped by 79% to H$1.24 trillion or $158 billion. Also, its total trading volume soared by 104% to over H$3.9 trillion. 

The recent volatility in the stock market means that its business continued doing well in the fourth quarter. Data compiled by Yahoo Finance shows that analysts anticipate that its business did well in the fourth quarter.

The average estimate is that its revenue rose by 42% to HKD 6.3 billion. If this is accurate, then the annual revenue will be HKD 22.42 billion. Its guidance is expected to show that its first quarter revenue will be HKD 6.13 billion, up by 30% YoY.

Another bullish catalyst for the company is that its valuation has become a bargain. Data compiled by Seeking Alpha shows that its forward price-to-earnings (PE) ratio is 14, much lower than that of other similar companies. 

For example, Webull, another Chinese company, has a forward multiple of 29. Robinhood has a multiple of 31, while Coinbase has a multiple of 52. 

Other valuation multiples show that it is a bargain. For example, the company has a forward revenue growth of 65% and a net income margin of 51%. This figure gives it a rule-of-40 multiple of 116%.

Futu Holdings stock price technical analysis

The daily timeframe chart shows that the Futu stock price has been in a downward trend in the past few months. It retreated from a high of $203 in October last year to a low of $138, 

The stock has recently formed a triple-bottom pattern at $138. A triple-bottom is a common bullish reversal sign. It also formed a falling wedge pattern.

Futu Holdings has moved above the key resistance level at $153, the neckline of the head-and-shoulders pattern. Also, the Relative Strength Index (RSI) and the MACD have all pointed upwards.

Therefore, the stock will likely rebound after earnings. If this happens, the next key target to watch will be at $170. The bullish outlook will be invalidated if it moves below the support at $138.