HSBC (HSBC) closed the most recent trading day at $38.47, moving +0.63% from the previous trading session. The stock outpaced the S&P 500’s daily loss of 0.45%. Meanwhile, the Dow lost 0.04%, and the Nasdaq, a tech-heavy index, added 3.58%.
Coming into today, shares of the bank had gained 1.08% in the past month. In that same time, the Finance sector gained 1.96%, while the S&P 500 gained 5.01%.
Investors will be hoping for strength from HSBC as it approaches its next earnings release. In that report, analysts expect HSBC to post earnings of $1.50 per share. This would mark year-over-year growth of 11.11%. Our most recent consensus estimate is calling for quarterly revenue of $15.87 billion, up 20.77% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.42 per share and revenue of $67.16 billion. These totals would mark changes of +73.51% and +21.36%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for HSBC. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 7.76% lower within the past month. HSBC is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, HSBC is currently trading at a Forward P/E ratio of 5.95. For comparison, its industry has an average Forward P/E of 7.32, which means HSBC is trading at a discount to the group.
Investors should also note that HSBC has a PEG ratio of 0.32 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. Banks – Foreign stocks are, on average, holding a PEG ratio of 1.01 based on yesterday’s closing prices.
The Banks – Foreign industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 113, which puts it in the top 45% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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HSBC Holdings plc (HSBC) : Free Stock Analysis Report
