HSBC (HSBC) Stock Sinks As Market Gains: What You Should Know
HSBC (HSBC) closed the most recent trading day at $26.58, moving -0.37% from the previous trading session. This change lagged the S&P 500's 1.97% gain on the day. Meanwhile, the Dow gained 1.88%, and the Nasdaq, a tech-heavy index, added 0.25%.
Coming into today, shares of the bank had lost 13.71% in the past month. In that same time, the Finance sector lost 9.76%, while the S&P 500 lost 9.93%.
HSBC will be looking to display strength as it nears its next earnings release. In that report, analysts expect HSBC to post earnings of $1.08 per share. This would mark year-over-year growth of 27.06%. Meanwhile, our latest consensus estimate is calling for revenue of $13.58 billion, up 11.31% from the prior-year quarter.
HSBC's full-year Zacks Consensus Estimates are calling for earnings of $3.51 per share and revenue of $52.82 billion. These results would represent year-over-year changes of +13.23% and +5.44%, respectively.
Investors should also note any recent changes to analyst estimates for HSBC. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.43% higher within the past month. HSBC is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that HSBC has a Forward P/E ratio of 7.61 right now. Its industry sports an average Forward P/E of 7.46, so we one might conclude that HSBC is trading at a premium comparatively.
It is also worth noting that HSBC currently has a PEG ratio of 0.39. 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 0.77 based on yesterday's closing prices.
The Banks - Foreign industry is part of the Finance sector. This group has a Zacks Industry Rank of 64, putting it in the top 26% 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.
To follow HSBC in the coming trading sessions, be sure to utilize Zacks.com.
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