This banking stock hits new 10-year highs

HSBC (HSBC) is trading at 10-year highs and is characterized by 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.”

Worth $250 billion, HSBC (HSBC) is a major global banking and financial services company. HSBC has a global presence with operations and offices around the world.

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 at the moment is that it gives investors access to the growth in the wealth management industry in Asia.

I found today’s chart of the day using Barchart’s powerful screening functions to sort out stocks with the highest technical buy signals; Superior current momentum in both strength and direction; The trend finder signal is “buy”. I then used Barchart’s FlipCharts feature to review the charts to estimate a fixed price. HSBC checks those boxes. Since the trend seeker indicated a new “buy” on August 8, the stock has gained 13.04%.

HSBC price vs daily moving averages:

Editor’s note: The technical indicators below are updated live during the session every 20 minutes and therefore can change every day with market volatility. Therefore, the index numbers shown below may not match what you see on Barchart.com when reading this report. These technical indicators form Barchart’s opinion on a particular stock.

HSBC reached a 10-year high of $72.21 in intraday trading on October 3.

HSBC has a weighted alpha of +62.68.
It has a 100% “Buy” opinion from Barchart.
The stock has gained 56.91% over the past year.
HSBC has a sound trend signal “buy” signal.
It is trading above its 20, 50 and 100 day moving averages.
The stock made 11 new highs and gained 9.68% in the past month.
The relative strength index (RSI) is at 66.98.
There is a technical support level around $71.86.

$250 billion market capitalization.
10.05x trailing price ratio.
2.77% dividend yield
Revenue is expected to grow 2.45% this year and another 0.87% next year.
Earnings are estimated to increase 13.33% next year.

I don’t buy stocks because everyone else is, but I realize that if big companies and investors are dumping stocks, it’s hard to get money to swim against the tide.

Wall Street analysts appear to have positive but mixed opinions on HSBC.

Wall Street analysts tracked by Parchart have issued 6 “Strong Buy,” 2 “Moderate Buy,” and 6 “Hold” opinions on the stock with price targets between $67 and $68.50.
The Value Line gives the stock its “above average” rating.
CFRA’s MarketScope Advisor rates a “Hold” with a price target of $75.
Morningstar believes the stock is fairly valuable and comments: “HSBC has cost advantages and significant intangible assets in its core market of Hong Kong that help it generate strong profits there even when the local economy is weaker. HSBC benefits from growing trade links between Greater China and Southeast Asia. Wealth management provides a growth opportunity for HSBC in Asia.”
1,236 investors following the stock on the Motley Fool believe the stock will beat the market while 812 believe it will not.
1,680 investors are monitoring the stock on Seeking Alpha, which makes the stock a ‘Hold’ and comments: “The bank’s strategic focus on high-yield regions such as Hong Kong, India and the Middle East is expected to drive future growth, supported by a rebound in IPO activity and enhanced wealth management services.”

HSBC provides exposure to Asian wealth management growth, but investors should note the volatility of the stock and employ disciplined risk management.

The day of the day chart was written Jim Van Merten. Read previous editions of our daily newsletter here.

Additional disclosure: Barchart of the Day highlights stocks that are seeing exceptional appreciation at current prices. They are not intended to be buy recommendations as these stocks are highly volatile and speculative. If you decide to add one of these stocks to your investment portfolio, it is highly suggested that you follow a pre-determined diversification and drive discipline that goes along with your personal investment risk tolerance.

On the date of publication, Jim Van Meerten had no positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article are only for informational purposes. This article was originally published on barchart.com

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