- HSBC (HSBC) is trading at new 10-year highs and boasts strong technical momentum.
- Shares are up nearly 57% over the past year.
- The stock boasts a 2.8% dividend yield and has fundamentals that support its technical strength.
- Analyst sentiment is positive but mixed, with most ratings between “Strong Buy” and “Hold.”
Today’s Featured Stock
Valued at $250 billion, HSBC (HSBC) is a major global banking and financial services firm. HSBC has a global presence with operations and offices all around the globe.
The company is involved in wealth and personal banking, commercial and corporate banking, and global banking. One of the most interesting aspects of its business right now is that it gives investors access to growth in the wealth management industry in Asia.
What I’m Watching
I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. HSBC checks those boxes. Since the Trend Seeker signaled a new “Buy” on Aug. 8 the stock has gained 13.04%.
HSBC Price vs. Daily Moving Averages:
Barchart Technical Indicators for HSBC
Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.
HSBC hit a 10-year high of $72.21 in intraday trading on Oct. 3.
- HSBC has a Weighted Alpha of +62.68.
- It has an 100% “Buy” opinion from Barchart.
- The stock gained 56.91% over the past year.
- HSBC has its Trend Seeker “Buy” signal intact.
- It is trading above its 20-, 50-, and 100-day moving averages.
- The stock made 11 new highs and gained 9.68% in the last month.
- Relative Strength Index (RSI) is at 66.98.
- There’s a technical support level around $71.86.
Don’t Forget the Fundamentals
- $250 billion market capitalization.
- 10.05x trailing price-earnings ratio.
- 2.77% Dividend yield
- Revenue is projected to grow 2.45% this year and another 0.87% next year.
- Earnings are estimated to increase 13.33% next year.
Analyst and Investor Sentiment on HSBC
I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping stock, it’s hard to make money swimming against the tide.
It looks like Wall Street analysts have positive but mixed opinions on HSBC.
- The Wall Street analysts tracked by Barchart have issued 6 “Strong Buy,” 2 “Moderate Buy” and 6 “Hold” opinions on the stock with price targets between $67 and $68.50.
- Value Line gives the stock its “Above Average” rating.
- CFRA’s MarketScope Advisor rates it a “Hold” with a price target of $75.
- Morningstar thinks the stock is fairly valued and comments: “HSBC has cost advantages and significant intangible assets in its core market of Hong Kong that help it generate strong earnings there even when the local economy is weaker. HSBC benefits from growing trade linkages between Greater China and Southeast Asia. Wealth management offers a growth opportunity for HSBC in Asia.”
- 1,236 investors following the stock on Motley Fool think the stock will beat the market while 812 think it won’t.
- 1,680 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold” and comments: “The bank’s strategic focus on high-return regions like Hong Kong, India, and the Middle East is expected to drive future growth, supported by a rebound in IPO activity and strengthened wealth management services.”
The Bottom Line on HSBC
HSBC offers exposure to Asian wealth management growth, but investors should note the stock’s volatility and employ disciplined risk management.
Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.
Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.
