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Trade-Ideas LLC identified
) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified HDFC Bank as such a stock due to the following factors:
- HDB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $58.7 million.
- HDB has traded 113,062 shares today.
- HDB is up 3.8% today.
- HDB was down 5.4% yesterday.
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More details on HDB:
HDFC Bank Limited, together with its subsidiaries, provides a range of banking and financial services to individuals and businesses in India, as well as in Bahrain and Hong Kong. The company operates in four segments: Retail Banking, Wholesale Banking, Treasury, and Other Banking Operations. The stock currently has a dividend yield of 0.6%. HDB has a PE ratio of 33.1. Currently there are 2 analysts that rate HDFC Bank a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for HDFC Bank has been 743,600 shares per day over the past 30 days. HDFC has a market cap of $42.9 billion and is part of the financial sector and banking industry. Shares are up 57.6% year-to-date as of the close of trading on Monday.
rates HDFC Bank as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, impressive record of earnings per share growth, compelling growth in net income and solid stock price performance. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 4.7%. Since the same quarter one year prior, revenues rose by 17.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Commercial Banks industry and the overall market, HDFC BANK LTD's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- HDFC BANK LTD has improved earnings per share by 31.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, HDFC BANK LTD increased its bottom line by earning $1.83 versus $1.56 in the prior year. This year, the market expects an improvement in earnings ($2.12 versus $1.83).
- The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Commercial Banks industry average. The net income increased by 32.9% when compared to the same quarter one year prior, rising from $352.13 million to $467.84 million.
- Powered by its strong earnings growth of 31.81% and other important driving factors, this stock has surged by 61.81% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- You can view the full HDFC Bank Ratings Report.