FUTU(US:FUTU) ZACKS·2025-09-16 17:02Core Viewpoint - Futu Holdings Limited has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is based solely on a company's changing earnings picture, tracking the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - The Zacks rating upgrade for Futu Holdings indicates a positive outlook on its earnings, likely leading to increased buying pressure and a rise in stock price [4][6]. Impact of Earnings Estimates on Stock Prices - Changes in a company's future earnings potential, reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements [5]. - Institutional investors utilize earnings estimates to calculate the fair value of stocks, and changes in these estimates can lead to significant buying or selling activity, impacting stock prices [5]. Recent Performance of Futu Holdings - For the fiscal year ending December 2025, Futu Holdings is expected to earn $8.24 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 16.5% over the past three months [9]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions and potential for market-beating returns [10][11].