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Will HSBC's Price Fall Continue on Revenue and Cost Concerns?
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Shares of HSBC Holdings plc (HSBC - Free Report) have lost 9.4% over the past three months compared with the industry’s fall of 7%. Muted revenue growth primarily led to the strained price performance. HSBC has been focused on growing the company’s market share and strengthening its digital capabilities. While, on one hand, this may bolster its revenues, on the other hand, it might result in elevated expenses.
Global economic concerns, including dismal European economic growth, continue to impede the company’s top-line growth. Further, demand for loans has been bleak, which has kept interest income under pressure. Elevated expenses resulting from restructuring efforts had also resulted in lower net revenues in the past.
Moreover, regulatory probes and litigations related to past business malpractices have affected the company’s financials. In addition, prevalent weakness in the financial sector has led to tightened regulatory norms and increased scrutiny, which will require HSBC to maintain an increased capital level. This may also significantly thwart its business growth.
Nonetheless, HSBC’s strong balance sheet and capital position should provide a competitive advantage over other banks in the long run.
Over the past 30 days, the Zacks Consensus Estimate for earnings has been revised 1.4% and 0.8% downward for 2018 and 2019, respectively. As a result, the stock currently carries a Zacks Rank #4 (Sell).
Over the last 60 days, the Zacks Consensus Estimate for BancFirst Corporation’s current-year earnings has moved 3.1% upward. Its share price has rallied 28.3% over the past year.
First Financial Bankshares’ earnings estimates for 2018 moved 2.8% north, in 60 days’ time. The stock has surged 51.2%, in a year’s time.
Over the last 60 days, BOK Financial Corporation’s 2018 earnings estimate moved up, marginally. Over the past year, its share price has appreciated 26%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
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Will HSBC's Price Fall Continue on Revenue and Cost Concerns?
Shares of HSBC Holdings plc (HSBC - Free Report) have lost 9.4% over the past three months compared with the industry’s fall of 7%. Muted revenue growth primarily led to the strained price performance. HSBC has been focused on growing the company’s market share and strengthening its digital capabilities. While, on one hand, this may bolster its revenues, on the other hand, it might result in elevated expenses.
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Global economic concerns, including dismal European economic growth, continue to impede the company’s top-line growth. Further, demand for loans has been bleak, which has kept interest income under pressure. Elevated expenses resulting from restructuring efforts had also resulted in lower net revenues in the past.
Moreover, regulatory probes and litigations related to past business malpractices have affected the company’s financials. In addition, prevalent weakness in the financial sector has led to tightened regulatory norms and increased scrutiny, which will require HSBC to maintain an increased capital level. This may also significantly thwart its business growth.
Nonetheless, HSBC’s strong balance sheet and capital position should provide a competitive advantage over other banks in the long run.
Over the past 30 days, the Zacks Consensus Estimate for earnings has been revised 1.4% and 0.8% downward for 2018 and 2019, respectively. As a result, the stock currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the finance space are BancFirst Corporation (BANF - Free Report) , First Financial Bankshares (FFIN - Free Report) and BOK Financial Corporation (BOKF - Free Report) . All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Over the last 60 days, the Zacks Consensus Estimate for BancFirst Corporation’s current-year earnings has moved 3.1% upward. Its share price has rallied 28.3% over the past year.
First Financial Bankshares’ earnings estimates for 2018 moved 2.8% north, in 60 days’ time. The stock has surged 51.2%, in a year’s time.
Over the last 60 days, BOK Financial Corporation’s 2018 earnings estimate moved up, marginally. Over the past year, its share price has appreciated 26%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>