We recently compiled a list of the 12 Hot Stocks to Buy According to Analysts. In this article, we are going to take a look at where Futu Holdings Limited (NASDAQ:FUTU) stands against the other hot stocks.
What’s the US Stock Market Like in 2025?
While the stock market in the United States remained closed on January 20 for Martin Luther King, Jr. Day, the day was happening with Donald Trump’s inauguration on the same date. Previously, the stock market enjoyed a rally following Trump’s win as the election uncertainty dissolved and the investor sentiment experienced a boost, looking forward to a pro-business environment.
As reported by Kiplinger, LPL’s chief technical strategist, Adam Turnquist, pointed towards plenty of reasons to be optimistic for the future, considering that the economy is doing well and that earnings are expected to grow again in the new year by double digits while AI simultaneously drives market enthusiasm. Turnquist referred to the Trump admin potentially having a ‘pro-growth agenda, less regulatory oversight, and potentially lower taxes’. Chief Investment Officer at UBS Global Wealth Management, reiterated the optimism, stating:
“The solid U.S. economy bodes well for corporate profits, the Fed remains on an easing path, and AI investment and monetization should continue to lead growth. We rate U.S. equities and quality bonds as Attractive.”
Although lower Fed rates, slowing inflation, and economic growth are factors building optimism, the uncertainty regarding policies, especially potential tariffs on imports from President-elect Trump, could impact the stock market rally. While the new admin is expected to impose up to 20% on all imports, this could depress the profits of American companies having robust sales abroad and hurt stocks. According to Federal Reserve Bank of New York research, Trump’s tariffs during his first term negatively impacted U.S. equities exposed to countries where tariffs were targeted, for instance, a negative shift was witnessed in equity prices on the days Trump tariffs were announced, while the effect was the most on businesses exposed to China. Thus, the past implies tariffs being implemented on Donald Trump’s second term’s day one could act as a downside catalyst for the S&P 500, Dow, and the Nasdaq.
Our Methodology:
In order to compile a list of the 12 hot stocks to buy according to analysts, we first used a stock screener to create a list of stocks that had gained over 30% over the past 6 months. Moving on, we shortlisted the top 12 stocks from our list which had the highest average upside potential, as of January 17. The 12 hot stocks to buy according to analysts have been arranged in ascending order of their average upside potentials.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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Futu Holdings Limited (NASDAQ:FUTU)
Average Upside Potential: 30.97%
Gain Over Past 6 Months: 40.79%
Futu Holdings Limited (NASDAQ:FUTU) serves as an advanced fintech company that provides fully digital financial services in multiple markets. FUTU offers investment services such as trade execution and clearing, margin financing and securities lending, as well as wealth management, through its proprietary digital platforms, Futubull, and moomoo.
The leading tech-driven online brokerage and wealth management platform, FUTU, boasts solid client momentum. In the first nine months of the preceding year, the firm acquired 487,000 paying clients, driven by strong momentum in newer markets and robust growth in established markets. While client acquisition has accelerated in Hong Kong and Singapore, Malaysia was another top contributor of new paying clients with FUTU elevating its brand image in the country and becoming the first broker in Malaysia to offer U.S. options trading.
The financials remain robust for Futu Holdings Limited (NASDAQ:FUTU) as the company closed the third quarter of 2024 with a total revenue of HK$3.4 billion, up 30% over the year. Brokerage commission and handling charge income was up 51.5% over the year, driven by the 74.7% year-over-year rise in total trading volume, partially offset by the decline in the blended commission rate.
Overall FUTU ranks 10th on our list of the hot stocks to buy according to analysts. While we acknowledge the potential of FUTU as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than FUTU but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article is originally published at Insider Monkey.
