HSBC Holdings (LSE:HSBA) shares have moved moderately in recent days, and investors are watching for clues about the next direction. The current price action comes as there is continued interest in the banking sector’s performance over the past month.

See our latest analysis for HSBC Holdings.

HSBC Holdings’ share price momentum has picked up meaningfully in 2024, with a 26.9% year-to-date gain and a robust 9.2% rise over the past three months, suggesting growing investor optimism around the bank’s earnings and outlook. Notably, long-term investors have been well rewarded: the total shareholder return stands at 56.3% over the last year, and a massive 335% over five years, which is an impressive track record that puts recent short-term fluctuations in context.

If you’re keeping an eye on how financial stocks are trending, this could be the perfect moment to broaden your search and discover fast growing stocks with high insider ownership

With shares near analysts’ price targets and strong recent gains, the key question remains: is HSBC Holdings undervalued at these levels, or has the market already priced in the bank’s growth prospects for the years ahead?

The most widely followed narrative suggests HSBC Holdings is trading almost exactly in line with its fair value, given a last close of £9.94 and an estimated fair value of £9.85. With bullish and bearish cases balanced, the current share price reflects where the consensus sees sustainable growth and risk for the future.

The strategic shift away from underperforming and non-core businesses in Europe and the Americas, and redeployment of capital into high-return businesses in Asia and the Middle East, is expected to improve overall net interest margins and boost group return on equity through better allocation of resources.

Read the complete narrative.

Is one region really powering all of HSBC’s upside and premium pricing? The narrative’s formula mixes regional pivots, digital bets, and a bold reset of profit margins. How much of the bank’s future is already priced in, and what is hiding in the assumptions? Discover the numbers and logic behind this calculated consensus.

Result: Fair Value of £9.85 (ABOUT RIGHT)

Have a read of the narrative in full and understand what's behind the forecasts.

However, there are still concerns that a prolonged downturn in Hong Kong’s property market or persistent global rate uncertainty could undermine HSBC’s projected growth momentum.

Find out about the key risks to this HSBC Holdings narrative.

While analysts believe HSBC Holdings is fairly valued based on its current share price and projected earnings, our DCF model offers a very different perspective. It suggests the stock is trading at a substantial discount, about 35% below its fair value of £15.31. Could the market be overlooking long-term potential, or are there risks not captured in growth forecasts?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day ( check out HSBC Holdings for example ). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows . If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

If you’d rather draw your own conclusions or test a different angle, you can piece together your own view from the data here in just a few minutes, and Do it your way

A great starting point for your HSBC Holdings research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

Don’t limit yourself to just one opportunity. The smartest investors always have an edge by searching for tomorrow’s winners before the crowd catches on.

Boost your income strategy with market leaders offering attractive payouts when you scan these 19 dividend stocks with yields > 3% .

Seize the potential of the next tech wave by spotting the innovators shaping artificial intelligence; start with these 24 AI penny stocks .

Position yourself ahead of value seekers by uncovering hidden gems trading below their worth through these 898 undervalued stocks based on cash flows .

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include HSBA.L .

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

HSBC Holdings (LSE:HSBA) shares have moved moderately in recent days, and investors are watching for clues about the next direction. The current price action comes as there is continued interest in the banking sector’s performance over the past month.

See our latest analysis for HSBC Holdings.

HSBC Holdings’ share price momentum has picked up meaningfully in 2024, with a 26.9% year-to-date gain and a robust 9.2% rise over the past three months, suggesting growing investor optimism around the bank’s earnings and outlook. Notably, long-term investors have been well rewarded: the total shareholder return stands at 56.3% over the last year, and a massive 335% over five years, which is an impressive track record that puts recent short-term fluctuations in context.

If you’re keeping an eye on how financial stocks are trending, this could be the perfect moment to broaden your search and discover fast growing stocks with high insider ownership

With shares near analysts’ price targets and strong recent gains, the key question remains: is HSBC Holdings undervalued at these levels, or has the market already priced in the bank’s growth prospects for the years ahead?

The most widely followed narrative suggests HSBC Holdings is trading almost exactly in line with its fair value, given a last close of £9.94 and an estimated fair value of £9.85. With bullish and bearish cases balanced, the current share price reflects where the consensus sees sustainable growth and risk for the future.

The strategic shift away from underperforming and non-core businesses in Europe and the Americas, and redeployment of capital into high-return businesses in Asia and the Middle East, is expected to improve overall net interest margins and boost group return on equity through better allocation of resources.

Read the complete narrative.

Is one region really powering all of HSBC’s upside and premium pricing? The narrative’s formula mixes regional pivots, digital bets, and a bold reset of profit margins. How much of the bank’s future is already priced in, and what is hiding in the assumptions? Discover the numbers and logic behind this calculated consensus.

Result: Fair Value of £9.85 (ABOUT RIGHT)

Have a read of the narrative in full and understand what's behind the forecasts.

However, there are still concerns that a prolonged downturn in Hong Kong’s property market or persistent global rate uncertainty could undermine HSBC’s projected growth momentum.

Find out about the key risks to this HSBC Holdings narrative.

While analysts believe HSBC Holdings is fairly valued based on its current share price and projected earnings, our DCF model offers a very different perspective. It suggests the stock is trading at a substantial discount, about 35% below its fair value of £15.31. Could the market be overlooking long-term potential, or are there risks not captured in growth forecasts?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day ( check out HSBC Holdings for example ). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows . If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

If you’d rather draw your own conclusions or test a different angle, you can piece together your own view from the data here in just a few minutes, and Do it your way

A great starting point for your HSBC Holdings research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

Don’t limit yourself to just one opportunity. The smartest investors always have an edge by searching for tomorrow’s winners before the crowd catches on.

Boost your income strategy with market leaders offering attractive payouts when you scan these 19 dividend stocks with yields > 3% .

Seize the potential of the next tech wave by spotting the innovators shaping artificial intelligence; start with these 24 AI penny stocks .

Position yourself ahead of value seekers by uncovering hidden gems trading below their worth through these 898 undervalued stocks based on cash flows .

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include HSBA.L .

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day ( check out HSBC Holdings for example ). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows . If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

If you’d rather draw your own conclusions or test a different angle, you can piece together your own view from the data here in just a few minutes, and Do it your way

A great starting point for your HSBC Holdings research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

Don’t limit yourself to just one opportunity. The smartest investors always have an edge by searching for tomorrow’s winners before the crowd catches on.

Boost your income strategy with market leaders offering attractive payouts when you scan these 19 dividend stocks with yields > 3% .

Seize the potential of the next tech wave by spotting the innovators shaping artificial intelligence; start with these 24 AI penny stocks .

Position yourself ahead of value seekers by uncovering hidden gems trading below their worth through these 898 undervalued stocks based on cash flows .

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include HSBA.L .

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com