Futu’s 117.8% YTD Surge Outpaces Sector Despite 386th Market Activity Rank and Analyst Upgrades

On August 18, 2025, Futu (FUTU) closed with a 0.76% decline, trading at a daily volume of $0.25 billion, ranking 386th in market activity. Analysts highlight its Zacks Rank of #2 (Buy), driven by a 20% upward revision in full-year earnings estimates over 90 days. The stock has surged 117.8% year-to-date, outperforming the -0.3% average return of the Business Services sector. Institutional ownership stands at 20.8%, with recent upgrades from Bank of America and Daiwa Capital raising price targets to $143.90 and $190.00, respectively.

Institutional activity intensified as Townsquare Capital LLC increased its stake by 28.6% in Q1, holding $723,000 in shares. Analyst sentiment remains cautiously optimistic, with six "Buy" ratings and one "Strong Buy" from Daiwa America. However, risk metrics show a beta of 0.86, indicating lower volatility than the S&P 500. Recent earnings reports exceeded expectations, with $1.96 per share in Q2, reflecting 41.74% net margins and 23.07% return on equity.

A backtest of a high-volume trading strategy (2022–2025) showed a 6.98% compound annual growth rate, though a 15.46% maximum drawdown in mid-2023 underscores risks in volume-driven approaches. The strategy’s steady growth aligns with Futu’s technical indicators, including a 9.10 price-to-sales ratio and 16.17 P/E ratio, suggesting moderate valuation pressures amid strong institutional confidence.