HSBC (HSBC, $41.36) misses 2018 expectations, gears up for 2019
London headquartered HSBC, Europe’s largest bank, recently published its full-year report revealing several forecast misses primarily due to a challenging fourth quarter.
The bank’s pre-tax profit for 2018 stood at $19.89 billion, 15.9% higher than the previous year, versus a forecast of a 23.8% jump to $21.26 billion. Reported revenue was 4.5% higher than 2017 to $53.78 billion versus a forecast of 6.28% higher to $54.674 billion.
Other financial metrics include: Net interest margin, a measure of lending profitability, stood at 1.66% as of December 31, 2018 – higher than the 1.63% seen in 2017; earnings per share for 2018 was $0.63 compared to $0.48 in 2017; and common equity tier 1 ratio — a proportion of the bank's core capital to assets — as on December 31 2018 stood at 14 % compared to 14.5% at end-2017. The bank’s Hong Kong listed shares also fell by 2% on Tuesday. It also missed its positive revenue ‘jaws’ target for 2018 recorded at minus 1.2%.
Despite these results, the bank’s CFO is satisfied, as the last quarter was particularly challenging which led to trading revenue losses in many banking groups. He is optimistic for 2019 as the bank is well-prepared for any outcome related to Brexit, and is yet to experience any dramatic slowdown in its business in China as a result of trade disputes between Washington and Beijing. However, wealth management strategists consider exactly these factors to become headwinds for the bank ahead in the market.
HSBC's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for HSBC turned positive on June 17, 2026. Looking at past instances where HSBC's MACD turned positive, the stock continued to rise in of 40 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 17, 2026. You may want to consider a long position or call options on HSBC as a result. In of 81 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
HSBC moved above its 50-day moving average on June 11, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where HSBC advanced for three days, in of 364 cases, the price rose further within the following month. The odds of a continued upward trend are .
HSBC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 413 cases where HSBC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where HSBC declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 23, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. HSBC’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.682) is normal, around the industry mean (1.888). P/E Ratio (15.952) is within average values for comparable stocks, (15.498). HSBC's Projected Growth (PEG Ratio) (0.954) is slightly lower than the industry average of (1.721). HSBC has a moderately high Dividend Yield (0.039) as compared to the industry average of (0.025). P/S Ratio (4.649) is also within normal values, averaging (4.002).
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a major bank
Industry MajorBanks
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