Blog

Red Cat Holdings, Inc. (NASDAQ:RCAT) is one of the stocks Jim Cramer was focused on recently. When a caller asked about the stock during the lightning round, Cramer said:

“Okay, so this is a Ben Stoto favorite, not really. It’s a drone company. We are on the fence about buying drone companies that aren’t making money.”

Pixabay/Public Domain

Red Cat Holdings, Inc. (NASDAQ:RCAT) develops drone systems and control technologies for military, government, and commercial use. During the February 18 episode, Cramer mentioned the stock and remarked:

“This one just happens to be a personal favorite of our chief scientist, Ben Stoto. We talk about Red Cat a lot. It’s a data analytics company, and you know what? I’m going to tell you, you can buy it. You really can. Because if it doubled, you’d feel like an idiot for not buying Red Cat.”

It is worth noting that since the above comment was made, the company’s stock gained around 65%.

While we acknowledge the potential of RCAT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

Futu Holdings (NasdaqGM:FUTU) shares have seen a steady climb this year, with the stock up over 100% year-to-date. Many investors are now reviewing its recent performance and growth numbers for insights into what might come next.

See our latest analysis for Futu Holdings.

Futu Holdings has enjoyed sustained momentum, with a 105.8% year-to-date share price return. This reflects renewed investor confidence and optimism around its growth story. Over the past year, its total shareholder return reached 79.4%, underscoring long-term performance beyond just recent gains.

If you’re weighing what else might be showing breakout momentum, this is a great moment to broaden your search and discover fast growing stocks with high insider ownership

With shares surging so impressively, the central question becomes whether Futu Holdings is still undervalued at current levels, or if the market is already accounting for the company’s future growth potential and leaving little room for upside.

Compared to Futu Holdings’ last close price of $163.53, the most widely followed narrative estimates a fair value of $207.27. The picture that emerges is of a company with catalysts that some see as transformative, and a valuation that challenges the market’s current view.

The rapid growth in funded accounts, especially from international markets such as Singapore, the U.S., Malaysia, and Japan, signals ongoing global expansion and diversification of Futu’s user base. This positions the company to capture rising middle-class wealth and digital financial adoption in Asia, supporting long-term revenue and AUM growth.

Read the complete narrative.

What is driving that bold upside call? This narrative is built on expectations of relentless customer growth, a resilient business model, and margin strength usually reserved for industry leaders. The surprising mix of ambitious projections and global expansion creates a valuation thesis you will not want to miss.

Result: Fair Value of $207.27 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, risks remain, as heightened competition in key Asian markets and regulatory hurdles could quickly turn investor optimism into caution for Futu Holdings.

Find out about the key risks to this Futu Holdings narrative.

While many focus on analyst price targets, compare Futu Holdings’ current price-to-earnings ratio of 22.4x against the industry average of 25.4x and a peer average of 22.2x. However, the fair ratio for Futu is estimated at 21.4x, suggesting that shares could be slightly expensive. This is an important detail for those weighing potential returns or risks.

See what the numbers say about this price — find out in our valuation breakdown.

If the narrative above doesn’t reflect your perspective, why not take a closer look at the figures yourself and craft your own in just a few minutes using Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Futu Holdings.

Don’t let great opportunities pass you by. Expand your watchlist with high-potential stocks you may have missed. Use these targeted screens to stay one step ahead:

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include FUTU.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com