HSBC (HSBC) closed the most recent trading day at $30.39, moving -0.49% from the previous trading session. This change was narrower than the S&P 500's daily loss of 1.13%. Meanwhile, the Dow lost 1.01%, and the Nasdaq, a tech-heavy index, lost 0.13%.
Coming into today, shares of the bank had lost 3.72% in the past month. In that same time, the Finance sector lost 5.01%, while the S&P 500 lost 7.59%.
HSBC will be looking to display strength as it nears its next earnings release. On that day, HSBC is projected to report earnings of $1.08 per share, which would represent year-over-year growth of 27.06%. Our most recent consensus estimate is calling for quarterly revenue of $13.58 billion, up 11.31% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.51 per share and revenue of $52.82 billion, which would represent changes of +13.23% and +5.44%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for HSBC. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.43% higher. HSBC is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, HSBC is holding a Forward P/E ratio of 8.71. Its industry sports an average Forward P/E of 8.15, so we one might conclude that HSBC is trading at a premium comparatively.
Investors should also note that HSBC has a PEG ratio of 0.44 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. The Banks - Foreign industry currently had an average PEG ratio of 0.8 as of yesterday's close.
The Banks - Foreign industry is part of the Finance sector. This group has a Zacks Industry Rank of 71, putting it in the top 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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