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 in -1.46% downward trend, falling for three consecutive days on June 11, 2025
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where HSBC declined for three days, in of 239 cases, the price declined further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for HSBC moved out of overbought territory on May 21, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 46 similar instances where the indicator moved out of overbought territory. In of the 46 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on June 13, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on HSBC as a result. In of 82 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for HSBC turned negative on May 28, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 37 similar instances when the indicator turned negative. In of the 37 cases the stock turned lower in the days that followed. This puts the odds of success at .
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where HSBC advanced for three days, in of 333 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 363 cases where HSBC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
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 30, 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 steady price growth. HSBC’s price grows at a higher 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 (0.804) is normal, around the industry mean (0.958). P/E Ratio (6.896) is within average values for comparable stocks, (8.937). Projected Growth (PEG Ratio) (0.601) is also within normal values, averaging (2.643). Dividend Yield (0.078) settles around the average of (0.053) among similar stocks. P/S Ratio (2.445) is also within normal values, averaging (2.460).
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a major bank
Industry MajorBanks
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