HSBC Holdings plc provides banking and financial services worldwide. The company operates through Wealth and Personal Banking, Commercial Banking, and Global Banking and Markets segments. The Wealth and Personal Banking segment offers retail banking and wealth products, including current and savings accounts, mortgages and personal loans, credit and debit cards, and local and international payment services; and wealth management services comprising insurance and investment products, global asset management services, investment management, and private wealth solutions. This segment serves personal banking and high net worth individuals. The Commercial Banking segment provides credit and lending, treasury management, payment, cash management, commercial insurance, and investment services; commercial cards; international trade and receivables finance services; foreign exchange products; capital raising services on debt and equity markets; and advisory services. It serves small and medium sized enterprises, mid-market enterprises, and corporates. The Global Banking and Markets segment offers financing, advisory, and transaction services; and credit, rates, foreign exchange, equities, money markets, and securities services; and engages in principal investment activities. It serves government, corporate and institutional clients, and private investors. HSBC Holdings plc was founded in 1865 and is headquartered in London, the United Kingdom.

HSBC appears to be a large and profitable bank with a very strong asset base, but the current valuation already reflects a significant portion of positive expectations. Revenue and net income remain high, and a net profit margin of 58.89% looks very strong compared with the industry, which supports the quality of the business. At the same time, ROE of 5.92%, ROA of 0.36%, and ROI of 3.84% are noticeably below industry benchmarks, and the year-over-year trend in these metrics has deteriorated, which limits re-rating potential. Of particular concern is the drop in operating income and operating margin to zero in the latest period, indicating instability in operating efficiency. Valuation multiples also do not provide a convincing case for upside: P/E of 29.21, P/S of 9.02, and P/B of 1.73 are above the industry median, meaning the market is paying a premium for quality but not for clear undervaluation. The only notable exception is P/FCF of 4.47, which is below the industry median, indicating strong cash flow and partially offsetting the expensive earnings and revenue multiples. Debt burden is moderate, but debt/equity of 0.67 is above the median, and long-term debt has increased, so the balance sheet cannot be called risk-free. Liquidity is weak: the quick ratio is zero, and the current ratio is below 1, which is not always critical for a bank, but still warrants caution. Dividend yield has fallen to zero in TTM after higher levels previously, so the dividend factor is not supporting the valuation at present. At the same time, total assets and cash on hand are growing, and equity remains very large, confirming HSBC’s systemic resilience. Overall, the fundamentals are rather high quality, but not strong enough to justify an aggressive target increase; due to expensive multiples, weak profitability momentum, and deteriorating operating metrics, the valuation should be reduced slightly.

HSBC Holdings, plc.

Сильный индекс, без изменений. Быки крепко уверены в своих позициях.

Strong index, flat. The bulls are very confident in their positions.

Сильный индекс, без изменений. Рынок не поддерживает быков.

Strong index, flat. The market does not support the bulls.

Сильный индекс, значительно упал. Отток средств из лонгов на высоком уровне.

Strong index, significantly down. Outflow of funds from longs at a high level.

HSBC remains a profitable and large-scale bank, but expensive valuation multiples, weak profitability, and deteriorating operating momentum limit its re-rating potential.

Jefferies Financial Group Inc. JEF is expanding its private credit footprint in Europe even as its Point Bonita platform faces renewed scrutiny following reported exposure of nearly $500 million to troubled iron ore trader Radiant World. The move highlights the growth opportunity in private credit while raising questions about whether Jefferies can scale the business without taking on excessive credit and reputational risks.
Jefferies Expands European Private Credit Capacity
Jefferies Credit Partners (JCP) announced on Sept. 9, 2026 that it had secured almost $4 billion of lending capacity for its European institutional direct-lending strategy. The inaugural European Direct Lending Fund is anchored by Allianz Global Investors, with additional commitments from the South Carolina Retirement System Investment Commission and other institutional investors. The fund has also been seeded with a diversified portfolio of recently originated European private-credit investments.
JCP launched its European direct-lending platform in late 2024 and has since deployed balance sheet capital. Including the new fund, two partnership accounts expected to close later in 2026 and balance sheet resources, Jefferies expects nearly $4 billion of near-term lending capacity for the strategy. The fund targets primarily sponsor-backed, senior-secured loans to middle-market and upper-middle-market companies across Europe and the United Kingdom.
The institutional backing is significant for Jefferies' asset-management ambitions as it provides a channel to grow fee-generating private-credit assets beyond the firm's balance sheet. The European strategy also allows Jefferies to leverage its existing sponsor and corporate relationships to source lending opportunities.
JEF’s Point Bonita Exposure Raises Risk Questions
The expansion comes at a time when a separate Jefferies-linked private-credit platform is dealing with significant challenges.
Point Bonita, a trade-finance platform managed through Jefferies' Leucadia Asset Management business, has already been under scrutiny following its exposure to bankrupt auto-parts supplier First Brands Group. Point Bonita had approximately $715 million of purported First Brands receivables, and Jefferies recorded a $30 million pre-tax loss related to its investment in the fund in the fourth quarter of fiscal 2025.
The latest issue involves Radiant World, an iron ore trader. LAM Trade Finance Group II, a fund managed by Jefferies' Point Bonita unit, has nearly $500 million of exposure to Radiant World, its founder and a related entity. The fund has accused Radiant World of misrepresenting receivables purportedly owed by major commodity traders and is pursuing legal action over the alleged fraud. Jefferies-linked entities have secured freezing orders against Radiant World and related parties in London and Singapore. Authorities in Singapore are investigating potentially invalid invoice submissions.
The reported exposure does not necessarily translate into an equivalent loss for Jefferies. Recovery will depend on the value and validity of the underlying receivables, legal proceedings and the ability to recover assets. Still, the case adds to concerns around collateral verification, receivables quality, counterparty due diligence and concentration risk within Point Bonita's trade-finance activities.
JEF’s Investor Confidence Could Shape Private-Credit Growth
The Point Bonita issues also create a potential investor-confidence challenge. Following the First Brands problems, Point Bonita investors requested redemptions. Payments will be spread over several quarters to allow Jefferies time to maximize portfolio recoveries and resolve First Brands-related receivables.
This matters for Jefferies because scaling private credit requires more than finding attractive lending opportunities. It also requires maintaining institutional confidence so that capital can be raised and retained through different credit cycles.
The new European fund nevertheless demonstrates that institutional demand for JEF’s private-credit capabilities remains present. The Allianz Global Investors-backed first close provides external validation of the European strategy, although the European direct-lending business is structurally different from Point Bonita's receivables-focused trade-finance activities.
However, the First Brands and Radiant World exposures highlight the importance of strong risk controls, as problems with underlying receivables can lead to financial losses, litigation, investor redemptions and reputational pressure. Jefferies has acknowledged lessons from First Brands and said it is strengthening its control regime.
The key test will be whether JEF can turn institutional demand for European private credit into sustained, fee-generating growth while maintaining rigorous underwriting, collateral verification and portfolio controls.
Over the past six months, JEF shares have gained 19.9% compared with the industry’s 6.9% growth.
6-Month Price Performance
Currently, JEF carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Restructuring Efforts by Other Financial Firms
This week, JPMorgan Chase & Co. JPM announced a strategic partnership with Qatar Investment Authority (QIA), with both signing a Memorandum of Understanding to establish a $20 billion investment framework across public and private markets. The partnership includes a $15 billion public equities mandate and a $5 billion private markets initiative focused on established U.S. middle-market companies, providing JPMorgan Asset Management with an opportunity to deepen its relationship with a major sovereign investor while expanding its institutional asset-management and private-markets capabilities.
JPMorgan’s broader private-capital strategy is supported by continued demand for financing, private-credit leverage and structured financing, along with significant private-equity dry powder and invested capital seeking liquidity. The partnership could support incremental recurring management and investment-related fees as capital is deployed, while JPMorgan’s integrated investment banking, markets, financing and asset-management capabilities could help deepen client relationships and capture additional private-capital activity.
Likewise, HSBC Holdings plc HSBC announced the expansion of its U.S. Premier offering with wealth, health, travel and international banking services to address the evolving needs of affluent customers with international lifestyles and cross-border wealth requirements. The initiative includes digital wealth-management capabilities, self-directed brokerage services, personalized financial planning and international banking benefits, supported by HSBC’s network of 21 U.S. Wealth Centers.
HSBC’s wealth franchise is already showing momentum, with wealth balances rising 7% year over year to $1.58 trillion and wealth revenues increasing 18% to $5.5 billion in the first half of 2026. While the enhanced U.S. Premier offering could deepen affluent-client relationships and support additional wealth and fee income, HSBC’s plans to simplify its organization and exit non-strategic businesses are expected to generate approximately $2 billion in annualized savings by the end of 2026, providing additional resources for priority growth initiatives.
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Can JEF Scale Private Credit While Managing Point Bonita Headwinds?

JPMorgan Chase & Co. JPM has announced a strategic partnership with Qatar Investment Authority (QIA), with both signing a Memorandum of Understanding to establish a $20 billion investment framework across public and private markets.
The partnership includes a $15 billion public equities mandate and a $5 billion private markets initiative focused on established middle-market companies in the United States.
The partnership provides JPMorgan Asset Management (JPMAM) with an opportunity to deepen its relationship with a major sovereign investor while expanding its institutional asset-management and private-market capabilities. It also aligns with JPMorgan’s broader strategy of pursuing organic growth by leveraging its global investment platform, research capabilities and extensive client relationships.
JPM Expands Public Equity and Private-Market Capabilities
JPMAM will manage customized global equity portfolios for QIA under the $15 billion public equities mandate. JPMorgan will leverage its active equity capabilities, global investment platform and research resources to support QIA’s long-term investment objectives. The mandate is expected to provide JPMAM with an opportunity to expand its institutional asset management business and generate incremental fee-based income as assets are deployed.
JPMorgan will also establish a $5 billion private markets initiative focused on providing senior financing to established U.S. middle-market companies across industrials, services, healthcare and technology. This will likely expand JPMorgan’s participation in private markets financing while complementing its existing capabilities across the private-capital ecosystem. The combination of the two mandates will likely support incremental recurring management and investment-related fees as capital is deployed.
JPM Sees Opportunities Across Private Capital and Financing
JPMorgan continues to view private capital as a significant organic growth opportunity. Management highlighted substantial invested capital seeking liquidity and significant private-equity dry powder, creating opportunities across financing, advisory and transaction-related activities.
The company is also expanding its relationships across the private-capital ecosystem by serving private-equity sponsors, portfolio companies, founders and owners. This enables JPMorgan to cross-sell and connect investment banking, markets, financing and asset management capabilities and potentially capture a broader share of client activity.
JPMorgan indicated that the private-credit market remains open for appropriate credits, sponsors and transactions, while institutional fundraising remains constructive. The company is also seeing increased demand for financing solutions, including private-credit leverage and structured financing.
This backdrop is supported by continued activity across JPMorgan’s Commercial and Investment Bank division. Management expects third-quarter investment banking fees to increase in the mid-to-high teens year over year. Strong client activity, financing demand and M&A opportunities could provide additional support to JPMorgan’s private capital strategy.
Our Take on JPMorgan & QIA Partnership
The partnership will likely provide JPMorgan with an additional avenue to expand its institutional asset-management and private-markets businesses. More importantly, the agreement fits the company’s broader strategy of using its investment, financing and advisory capabilities across the private-capital ecosystem. While the near-term financial contribution will depend on capital deployment, the scale of the mandates and JPMorgan’s existing private-capital franchise create scope for longer-term fee-based growth and deeper client engagement.
Over the past six months, JPM shares have gained 21.4% compared with the industry’s 18.7% growth.
Six-Month Price Performance
Currently, JPM carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Restructuring Efforts by Other Financial Firms
This week, HSBC Holdings plc HSBC announced the expansion of its U.S. Premier offering with wealth, health, travel and international banking services to address the evolving needs of affluent customers with international lifestyles and cross-border wealth requirements. The initiative includes digital wealth-management capabilities, self-directed brokerage services, personalized financial planning and international banking benefits, supported by HSBC’s network of 21 U.S. Wealth Centers.
HSBC’s wealth franchise is already showing momentum, with wealth balances rising 7% year over year to $1.58 trillion and wealth revenues increasing 18% to $5.5 billion in the first half of 2026. While the enhanced U.S. Premier offering could deepen affluent-client relationships and support additional wealth and fee income, HSBC’s plans to simplify its organization and exit non-strategic businesses are expected to generate approximately $2 billion in annualized savings by the end of 2026, providing additional resources for priority growth initiatives.
Earlier in this month, BGC Group BGC announced plans to advance its push toward AI-driven institutional trading with the launch of Fenics AI, which recently completed BGC’s first fully AI-brokered institutional trade in listed equity derivatives. The initiative supports BGC Group’s broader shift toward electronic and technology-enabled trading, while potentially allowing brokers to focus on higher-value client interactions and complex transactions.
Fenics AI will likely add another potential growth avenue to BGC Group’s expanding Fenics franchise. While near-term contributions from Fenics AI are expected to be limited during the initial commercialization phase, broader adoption is likely to increase transaction capacity, improve operating leverage and streamline trade processing.
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Will JPM's $20B QIA Partnership Strengthen Asset Management Business?

HSBC Holdings HSBC is sharpening its growth strategy around businesses where it already has scale and competitive advantages, while using exits and simplification savings to fund expansion.
Last week, at the Barclays Global Financial Services Conference, chief financial officer Pam Kaur said that all four of HSBC’s businesses are growing and generating returns above the minimum targets set earlier this year. The company’s near-term investment priorities include Hong Kong, wealth management, data and AI, U.K. small and midsize enterprises, and wholesale transaction banking across foreign exchange, trade, payments and securities services.
Hong Kong, Wealth and Trade Drive HSBC’s Expansion
Hong Kong remains central to the bank’s expansion plan. HSBC’s franchise there continues to benefit from customer acquisition, cross-border flows and wealth activity. Pam Kaur mentioned new-to-bank customer additions in July and August remained around the first-half average, while second-quarter net new money in wealth reached $22 billion, equivalent to an annualized growth rate of 8%. This builds on HSBC’s already sizable Hong Kong franchise, where it added more than 1.1 million new-to-bank customers and opened five new Wealth Centers in 2025. The full ownership of Hang Seng Bank is likely to deepen that position. Management expects about $900 million of value creation from synergies, while Hang Seng’s new-to-bank customer flow doubled in the second quarter.
Trade finance is another expansion engine. HSBC said Asian export growth is supporting stronger demand for short-term commercial lending as clients adjust supply chains. Trade loans rose 30% year over year to $120 billion, while trade revenues increased 13% to $800 million in the second quarter. In the U.K., HSBC is focusing investment on SME banking, trade, international banking and technology-led customer journeys. The ring-fenced U.K. bank generated a 21% return on tangible equity, with revenue up 5%, lending up 7% and deposits up 4%.
Importantly, HSBC is trying to self-fund much of this expansion. The bank has announced 15 business or market exits since the start of 2025. Those businesses represent roughly $1.1 billion of costs and about $2 billion of revenue. Management intends to redeploy the released cost base into higher-return core businesses, though the revenue drag will arrive faster than some reinvestment benefits. HSBC also raised its organizational simplification savings target to $2 billion from $1.5 billion. The strategy is therefore less about broad geographic expansion and more about concentrating capital, technology and talent in franchises with stronger returns.
The financial backdrop supports that approach. HSBC reiterated its target for revenue growth to rise to 5% year over year by 2028 and for return on tangible equity of at least 17% through 2028, excluding notable items. It also lifted 2026 banking net interest income guidance to at least $46 billion.
Capital generation remains strong, giving HSBC considerable flexibility in how it deploys excess resources. Management has maintained a clear capital-allocation hierarchy, with a 50% dividend payout ratio as the first priority, followed by investment in organic growth opportunities that can generate attractive returns within the bank’s risk appetite. Beyond those needs, HSBC continues to favor share buybacks as its preferred method of returning surplus capital to shareholders, supporting both shareholder distributions and per-share value creation while preserving capacity to fund growth.
Can HSBC Shares Extend Their Rally?
HSBC’s shares have delivered a strong performance so far this year, gaining 31.2% and outperforming the industry’s 19.1% rise. The stock has also fared better than peers such as Barclays BCS and UBS Group AG UBS, which declined 0.6% and gained 10.2%, respectively, over the same period.
With HSBC closing within about 5% of its 52-week high in the latest trading session, some of the optimism surrounding its growth strategy may already be reflected in the share price.
Despite the impressive rally, HSBC’s valuation remains reasonable. The stock is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 10.93X, slightly below the industry average of 11.19X. The below-industry valuation suggests the stock’s strong year-to-date gains have not pushed its multiple significantly above sector levels, making the valuation supportive if operating momentum continues.
P/E F12M
Among its peers, Barclays trades at a forward 12-month P/E multiple of 7.84X, while UBS Group trades at 11.81X. Thus, HSBC commands a substantial premium to Barclays but remains less expensive than UBS Group.
The earnings outlook also remains supportive. The Zacks Consensus Estimate for HSBC’s 2026 earnings indicates a 13.4% year-over-year increase, while earnings in 2027 are expected to rise another 14.2%. Over the past 30 days, the consensus estimate for 2026 earnings has edged down to $8.56 per share, while the 2027 estimate has moved slightly higher to $9.77.
Earnings Estimates
Further upside in HSBC shares will likely depend on the bank’s ability to sustain wealth inflows, successfully integrate Hang Seng Bank and maintain healthy growth across trade finance and U.K. lending. Progress toward its cost-saving targets and evidence that investments in core businesses can offset revenues lost through market exits would further strengthen the earnings outlook.
At the same time, execution risks remain. HSBC faces potential pressure from interest-rate volatility, credit deterioration in selected portfolios and the timing gap between revenue lost through exits and returns from reinvestment. The strong rally in the stock also raises the bar for future results, making consistent delivery against management’s revenue growth, return and cost targets increasingly important.
Overall, HSBC’s operating momentum, earnings growth prospects and relatively reasonable valuation provide support to the investment case. However, with the shares already trading near their 52-week high, the next leg of the rally will likely depend on management translating its focused expansion strategy into sustained earnings growth while maintaining cost and capital discipline.
At present, HSBC carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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HSBC Targets Higher-Return Growth: Can the Stock Keep Climbing?

HSBC Holdings plc HSBC is enhancing its Premier offering in the United States to address the evolving needs of affluent customers, particularly those with international lifestyles and cross-border wealth requirements. The expanded proposition covers wealth, health, travel and international banking, strengthening the company’s efforts to deepen relationships with affluent customers.
The initiative comes as affluent investors increasingly diversify their investments across markets. HSBC’s Global Affluent Investor Snapshot 2026 showed that 40% of investors intend to maintain or increase their U.S. exposure over the next 12 months.
The research also showed that 45% of affluent and high-net-worth investors prioritize funding lifestyle goals, highlighting the opportunity for banks to offer services extending beyond traditional wealth management.
HSBC Enhances Wealth and International Banking Services
HSBC’s enhanced U.S. Premier offering combines digital wealth-management capabilities with services designed for internationally connected customers. Through the HSBC U.S. mobile app, Premier customers can open an HSBC Securities (USA) Inc. self-directed brokerage account, view portfolio holdings and trade mutual funds in real time. These capabilities complement personalized financial planning provided by HSBC Wealth Relationship Managers.
The offering also includes access to third-party health and wellness services, global travel support and benefits, credit card rewards, no foreign transaction fees, savings on hotels and dining, and points on travel purchases. Additionally, the bank is offering competitive foreign-exchange rates, no HSBC fees on international transfers, dedicated international support and pre-arrival account opening for customers coming to the United States.
The expanded proposition is supported by HSBC’s growing U.S. Wealth Center network. The bank has 21 Wealth Centers across the country, including locations in South Florida, Washington, D.C., New York, Los Angeles, San Francisco and Seattle. It also relaunched its Park Avenue Wealth Center in New York earlier this year and plans to relaunch its Cupertino, CA, Wealth Center this month.
HSBC’s broader wealth strategy is already showing momentum. In the first half of 2026, wealth balances increased 7% year over year to $1.58 trillion, while wealth revenues rose 18% to $5.5 billion.
Wealth Franchise: Robust Growth From a Leading Asia Position
Image Source: HSBC Holdings plc
HSBC’s wealth expansion extends beyond the United States. In Hong Kong, wealth balances grew 10% year over year in the first half of 2026 to approximately $0.5 trillion, highlighting the bank’s continued momentum in one of its key wealth markets.
Our Take on HSBC’s Business Expansion Efforts
HSBC’s greater emphasis on affluent customers will likely help deepen relationships and create additional opportunities for wealth management and other fee income. The United States is particularly important, given its position as a major destination for international investment and the growing mobility of affluent customers.
HSBC is also simplifying the organization and exiting non-strategic businesses, creating scope to redeploy resources toward priority areas. The company expects approximately $2 billion of annualized savings from structural simplification by the end of 2026, with additional savings being used to support growth initiatives. These savings could provide greater flexibility to invest in priority businesses, although HSBC will need to balance growth investments and technology spending with continued expense discipline.
Over the past year, HSBC shares have gained 45.5% compared with the industry’s 29% growth.
One-Year Price Performance
Image Source: Zacks Investment Research
Currently, HSBC carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Restructuring Efforts by Other Financial Firms
Earlier this month, Northern Trust Corporation NTRS announced the expansion of its Singapore unit trust capabilities through a strategic relationship with Perpetual (Asia) Limited. The partnership combines NTRS’ custody, fund administration and middle-office outsourcing services with Perpetual’s trustee and fiduciary capabilities. The tie-up provides investment managers with a more integrated solution for Singapore retail unit trusts while supporting NTRS’ broader APAC asset-servicing expansion.
The partnership adds to NTRS’ growing presence in the APAC asset-servicing market, where its assets under custody reached $1 trillion as of June 30, 2026, up 12% year over year. According to PwC insights, APAC assets under management are projected to reach $34.5 trillion by 2030 from $23.2 trillion in 2024. Continued growth in regional fund assets and investment activity could increase demand for custody, fund administration and related services, potentially helping NTRS deepen client relationships and drive service-related fee income.
Likewise, BGC Group BGC is advancing its push toward AI-driven institutional trading with the launch of Fenics AI, which recently completed BGC’s first fully AI-brokered institutional trade in listed equity derivatives. The initiative supports BGC’s broader shift toward electronic and technology-enabled trading, while potentially allowing brokers to focus on higher-value client interactions and complex transactions.
Fenics AI adds another potential growth avenue to BGC’s expanding Fenics franchise. Fenics revenues rose 14.3% year over year to $186.2 million in the second quarter of 2026. Fenics Growth Platforms revenues increased 22.9% to $33.4 million, supported by FMX, PortfolioMatch and Lucera. While near-term contributions from Fenics AI are expected to be limited during the initial commercialization phase, broader adoption could increase transaction capacity, improve operating leverage and streamline trade processing.
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Can HSBC's Enhanced U.S. Premier Offering Drive Wealth Growth?

Truist Financial Corporation TFC is exiting the near-prime auto lending business as new CEO Mike Lyons accelerates a broader review of businesses and portfolios that do not align with the bank’s strategic priorities or profitability goals.
Truist has agreed to sell $5.5 billion of near-prime auto loans, representing substantially all the assets of its Regional Acceptance Corporation (RAC) subsidiary. The transaction is expected to be closed in late third-quarter 2026 or early fourth-quarter 2026, subject to customary closing conditions.
The sale reflects Truist’s efforts to prioritize businesses that leverage its core strengths, generate attractive economics and deepen client relationships. Chief financial officer Mike Maguire said at the Barclays Global Financial Services Conference that RAC was a “loan-only, loan-first” national business, offering limited opportunities to build broader client relationships.
RAC Exit to Improve TFC’s Credit Profile & Capital Position
RAC was approximately break-even through the first half of 2026, despite its relatively high asset yields. Maguire noted that yields of roughly 12%, combined with funding costs of around 4% and loss experience in the 7%-8% range, resulted in limited economic value for TFC.
The transaction is expected to generate $5.2 billion of net proceeds and a $535 million loan-loss reserve recapture. It is also expected to create approximately $945 million, or 22 basis points (bps), of Common Equity Tier 1 (CET1) capital. Truist plans to use the proceeds to repay wholesale borrowings, while repositioning of certain available-for-sale securities will likely offset the capital created by the transaction.
The exit is also expected to improve Truist’s credit profile, with non-performing loans projected to decline by more than 10 bps and annualized net charge-offs (NCOs) to decrease by about 10 bps. Maguire said this would represent an improvement of roughly 20% in annualized NCOs, based on Truist’s 55-bps 2026 guidance.
Truist expects these strategic actions to result in modest earnings and Return on Tangible Common Equity (ROTCE) accretion in 2027, while its $5 billion 2026 share-repurchase target remains unchanged.
Lyons Brings Greater Discipline to TFC’s Portfolio Review
The RAC exit follows Truist’s earlier decision to cease originations in marine and recreational vehicle lending and reduce originations in certain prime and non-prime auto businesses. Maguire said these actions reflect a common framework under Lyons: evaluating whether businesses fit Truist’s strategy and, if not, whether their economic contribution justifies retaining them.
Maguire said Lyons has brought a “fresh, external perspective” and greater urgency to the strategic review that began earlier in 2026. The review is focused on fewer businesses that can leverage Truist’s strengths, support its deposit franchise and complement its wholesale businesses.
While additional portfolio changes remain a possibility, the objective is not simply to shrink the balance sheet. Instead, Truist intends to redeploy resources toward profitable growth, including core commercial and middle-market banking, payments, credit cards, home equity and mortgage products.
The company continues to expect modest net interest margin (NIM) improvement in the second half of 2026, although the RAC exit is expected to reduce reported NIM by roughly 4-5 basis points net of the securities repositioning.
Our Take on TFC’s Business Streamlining Plan
Overall, the RAC exit marks an early and tangible step in Lyons’ effort to sharpen Truist’s strategic focus. The broader review will likely allow the bank to redirect capital and resources from less strategic, lower-return activities toward core relationships and businesses with greater potential to support profitable growth.
Over the past year, TFC’s shares have gained 11.1% compared with the industry’s 28.6% growth.
One-Year Price Performance
Currently, Truist carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Similar Steps Taken by Other Financial Firms
HSBC Holdings plc HSBC is winding down its transaction services business in Germany, affecting approximately 320 positions by 2028. The move is part of the company’s broader simplification strategy to reduce exposure to lower-priority operations and redirect resources toward core franchises and higher-growth markets.
The restructuring affects around 300 positions at HSBC Transaction Services GmbH and 20 at HSBC Service Company Germany GmbH. The business provides securities processing, administration, and custody services, while HSBC’s earlier exit from private banking in Germany and planned carve-out of custody and fund administration businesses reduced the domestic processing volumes supporting the operation.
BlackRock, Inc. BLK plans to explore the sale of BlackRock TCP Capital Corp.’s TCPC remaining $671 million loan portfolio, potentially helping reduce exposure to stressed legacy assets and streamline its private-credit operations. The move follows credit quality concerns, portfolio markdowns and valuation pressure at TCPC.
The potential sale follows TCPC’s recent divestment of approximately $523 million of investments across 78 portfolio companies, which strengthened its balance sheet and reduced leverage. For BlackRock, exiting the remaining portfolio could limit further losses from weaker assets while allowing greater focus on its broader private-credit platform following the HPS Investment Partners acquisition.
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Will Truist's Prime Auto Lending Exit Strengthen Its Profitability?

HSBC Holdings plc HSBC is winding down its transaction services business in Germany, with approximately 320 positions expected to be phased out by 2028. The move is part of the bank’s broader simplification strategy to reduce exposure to lower-priority operations and redirect resources toward core franchises and higher-growth markets.
HSBC Streamlines Germany Operations to Improve Efficiency
Approximately 300 positions at HSBC Transaction Services GmbH and 20 at HSBC Service Company Germany GmbH will be affected. The transaction services business provides securities processing, administration, and custody services.
The current restructuring follows HSBC’s earlier exit from other businesses in Germany. The bank sold its German private banking business to BNP Paribas in 2024 and agreed to carve out its custody and fund administration businesses. These actions reduced the domestic processing volumes supporting the German transaction-services infrastructure.
The Germany wind-down is part of HSBC’s wider simplification program. By the first half of 2026, the bank had actioned $1.7 billion of annualized savings, with $1.4 billion of restructuring costs incurred. The company has raised its end-2026 annualized savings target to approximately $2 billion while maintaining its original $1.8 billion restructuring cost budget.
Simplification Savings & Restructuring Cost Trajectory
Image Source: HSBC Holdings plc
Over the medium term, management expects to reallocate approximately $1.8 billion of savings from non-strategic operations toward higher-returning businesses. This includes around $0.3 billion of cost synergies realized from the privatization of Hang Seng Bank.
HSBC Redirects Resources Toward Core Growth Businesses
The Germany exit does not signal a retreat from transaction banking. HSBC continues to invest in its global Wholesale Transaction Banking (WTB) franchise, which includes Global Payments Solutions, Global Trade Solutions, Securities Services and foreign exchange.
WTB fee and other income increased 4% year over year on a constant-currency basis to $6.1 billion in the first half of 2026.
WTB Fee & Other Income by Product Stream
Image Source: HSBC Holdings plc
Our Take on HSBC’s Business Simplification Plan
The Germany transaction-services wind-down is a positive step in HSBC’s portfolio optimization strategy. While the immediate financial benefit is difficult to quantify because it has not separately disclosed restructuring costs or savings from the Germany exit, the broader simplification program is already generating meaningful savings.
HSBC is combining cost discipline with investment in high-growth businesses, particularly the Asia region. The bank is expanding its Asian wealth business, targeting high- and ultra-high-net-worth clients. In China, it is growing through wealth centers, Citigroup’s retail wealth acquisition, digital upgrades and hiring. In India, HSBC is adding 20 branches and expanding Premier Banking. It has launched Global Private Banking and completed the buyout of L&T Investment Management.
These actions suggest that the resources freed through portfolio simplification are being directed toward franchises with stronger growth and return potential. HSBC continues to target annualized RoTE of at least 17% through 2026-2028 and constant-currency revenue growth of 5% by 2028.
Over the past year, shares of HSBC have soared 50%, outperforming the industry's rally of 32.5%.
One-Year Price Performance
At present, HSBC carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Restructuring Efforts by Other Global Banks
Citigroup Inc. C is reshaping its China operations around institutional banking and capital markets, following the sale of its China consumer banking business to HSBC in 2024. The proposed wholly owned brokerage platform (approval likely coming later this month) would provide A-share brokerage, underwriting, research, and principal trading capabilities. This is aimed at deepening existing client relationships and capturing a larger share of domestic financial activity.
The China brokerage expansion also supports Citigroup’s OneCiti strategy of increasing wallet share across client relationships. By combining corporate banking, cash management, trade finance and securities services, the bank can offer a broader range of products to institutional clients.
The Goldman Sachs Group, Inc. GS has been restructuring its business mix toward higher-growth, capital-light businesses, with the Asset & Wealth Management division a key focus. In sync with this, earlier this week, the company announced a strategic collaboration with IG Wealth Management to expand its presence in Canada’s wealth management market.
Additionally, Goldman has expanded its investment management capabilities through the acquisition of Innovator Capital Management, while agreeing to acquire NEOS Investments and LCN Capital Partners. These moves broaden the company’s ETF, alternatives, and real estate capabilities and strengthen its ability to attract third-party assets.
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Can HSBC's Germany Pullback Support Profitability and Efficiency?

Citigroup Inc. C is moving closer to establishing a wholly owned brokerage business in China, with final regulatory approval potentially coming in September 2026, according to a Reuters report published on MSN. C applied for the brokerage license in 2021, and in May 2026, the China Securities Regulatory Commission (“CSRC”) completed its review, clearing a major regulatory hurdle. The bank also plans to roughly double the unit’s headcount to about 100 employees by 2026-end through internal transfers and external hiring.
The proposed brokerage platform would expand C’s capabilities in China beyond its existing investment-banking operations, which primarily help Chinese companies access overseas capital markets. Once approved, the securities unit is expected to offer A-share brokerage, underwriting, research and principal trading. These services would give the company greater access to domestic equity and mergers and acquisitions (M&As) activity, creating additional fee opportunities and strengthening its onshore capital markets franchise.
The bank enters this expansion with an established corporate and commercial banking franchise in China. The bank already serves onshore clients through foreign exchange, cash management and trade finance, giving it existing relationships that can be leveraged to introduce securities and capital-markets services. This creates an opportunity to deepen client relationships and capture a larger share of their overall financial activity as domestic markets become a bigger part of C’s China offering.
The expansion also fits Citigroup’s OneCiti strategy of connecting businesses and products to increase wallet share across client relationships. By combining its existing banking capabilities with domestic brokerage and capital-markets services, C could pursue more opportunities across the client lifecycle, from financing and cash management to equity issuance, M&A and securities trading. This could support its broader objective of increasing investment-banking wallet share from 4.7% in 2025 to more than 6% in the near term, a key target outlined at its 2026 Investor Day.
The brokerage push is also consistent with C’s broader repositioning of its China business toward institutional banking and capital markets. The bank sold its China consumer banking business to HSBC Holdings plc HSBC in 2024, allowing it to concentrate resources on institutional clients. Rather than rebuilding its former consumer franchise, the proposed securities platform would deepen C’s institutional presence by adding domestic-market capabilities to its existing corporate and investment-banking relationships. Overall, the China brokerage license could enable Citigroup to deepen existing client relationships, capture a larger share of domestic capital markets activity and unlock new fee opportunities.
How Are Other Firms Positioned in China?
Not only Citigroup, but also other global players like JPMorgan JPM and Goldman Sachs GS have strengthened their presence in China’s securities market through wholly owned onshore platforms.
JPMorgan has built a strong securities presence in China, receiving CSRC approval in August 2021 to fully own J.P. Morgan Securities (China), making it the first foreign bank to fully own a securities venture in the country. JPMorgan’s broader China franchise includes a wholly owned futures business and China International Fund Management, while its strong global investment-banking position is reflected in a 9.3% wallet share in the first half of 2026.
Goldman Sachs has similarly strengthened its China franchise, receiving approval in October 2021 to fully own Goldman Sachs Gao Hua Securities and consolidate its onshore businesses under one entity. The strong global investment-banking franchise of Goldman Sachs further supports this positioning, with investment-banking fees rising 52% year over year to $6.2 billion in the first half of 2026, while its backlog reached a five-year high.
C’s Price Performance & Zacks Rank
Over the past six months, shares of Citigroup have gained 29.2% compared with the industry’s growth of 24.9%.
Citigroup currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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C Nears China Brokerage License: Can Onshore Expansion Boost Growth?

Barclays PLC’s BCS expansion across U.S. consumer banking, U.K. lending and Investment Banking is strengthening its revenue-generating capabilities. The company’s income increased 11% year over year to £16.5 billion in the first half of 2026, reflecting growth across its major businesses and continued investment in areas with opportunities for revenue expansion.
Barclays expects total income to reach approximately £31.5 billion in 2026 and witness a CAGR of more than 5% between 2025 and 2028. The positive revenue outlook is also reflected in the Zacks Consensus Estimate, which projects sales increases of 9.6% and 4.1% year over year for 2026 and 2027, respectively.
Sales Estimate
Consumer Expansion Supports Barclays’ Revenue Growth
Barclays is strengthening its U.S. consumer-finance franchise through the acquisition of Best Egg, completed on May 1, 2026, for approximately £0.6 billion. The transaction adds a digital direct-to-consumer personal-lending platform focused on prime borrowers and expands Barclays’ origination and servicing capabilities. This supports the bank’s efforts to build scale in U.S. consumer lending and create additional revenue opportunities.
U.S. Consumer Bank (USCB) generated £2.1 billion of income in the first half of 2026, up 26% year over year, with net interest income (NII) increasing 18% and net fee, commission and other income rising 53%. The half-year numbers included approximately £225 million gain from the American Airlines portfolio exit.
Barclays is also increasing lending capacity across its U.K. businesses to capture loan growth opportunities. U.K. lending balances increased 5% year over year in the first half of 2026, while Barclays UK’s NII rose 8% to £4.0 billion and total income increased 8% to £4.5 billion. Since 2024, Barclays has delivered £25 billion of its planned approximately £30 billion increase in U.K. risk-weighted assets (RWA), including £3 billion in the first half of 2026. The additional capacity provides scope for further lending growth and supports recurring NII expansion.
Strengthening the U.K. lending Franchise
BCS’ Business Expansion Broadens Revenue Base
Barclays is strengthening its Investment Bank by leveraging its capabilities across Global Markets and Investment Banking. The division generated £8.0 billion of income in the first half of 2026, up 11% year over year. The increase was supported by higher Global Markets income, particularly in Prime Financing and Equity Derivatives, as well as stronger Investment Banking fees and underwriting income.
Continued investment in these businesses is expected to help Barclays capture higher client activity and expand its revenue opportunities across capital markets and financing. The growth also complements the bank’s expansion in consumer and U.K. banking, helping broaden its overall revenue base.
The bank is also broadening its U.K. customer franchise through the planned acquisition of GoHenry, a money-management platform for children and young people. Announced in June 2026, the acquisition is expected to close in the fourth quarter of 2026. Once completed, GoHenry could contribute to Barclays’ revenue growth by expanding its customer base and enabling the bank to establish relationships with younger customers earlier in their financial lives.
Our Take on Barclays’ Expansion Efforts
Barclays’ expansion across high-growth, core operations will likely support sustained top-line growth as it broadens its revenue-generating capabilities. Continued expansion across core businesses, along with contributions from the pending GoHenry buyout, will likely provide multiple avenues for growth and strengthen the company’s overall revenue base.
Over the past year, BCS shares have gained 30.3%, underperforming the industry’s 33.8% growth.
One-Year Price Performance
Currently, Barclays carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Expansion Efforts by BCS’ Peers
The Goldman Sachs Group, Inc.’s GS expansion in Asset & Wealth Management is broadening its fee-based revenue streams. The LCN Capital Partners and NEOS Investments acquisitions will likely strengthen its real estate and exchange-traded fund offerings. These deals add scale, diversify products, and expand Goldman’s client reach. They should support recurring fee income and long-term revenue growth.
Goldman’s Asset & Wealth Management business continued to expand in the first half of 2026. Assets under supervision exceeded $4 trillion, while alternative assets under supervision reached $459 billion. Goldman also raised $85 billion across third-party alternatives during the first half. Continued expansion is expected to support asset gathering, recurring fee income and long-term revenue growth.
HSBC Holdings plc’s HSBC acquisitions and strategic investments across Asia are strengthening its wealth management franchise and expanding fee-generating opportunities. The acquisition of Citigroup’s retail wealth business in China, along with the expansion of Premier and Global Private Banking in India, is helping the company capture rising wealth across key markets. Wealth balances increased 18% year over year in the first half of 2026, supporting growth in wealth fees and other income.
The privatization of Hang Seng Bank will likely further enhance HSBC’s ability to capture revenue and cost synergies across businesses. At the same time, the bank’s focus on high-net-worth and ultra-high-net-worth clients, combined with digital upgrades and expanded product offerings, is expected to drive higher client assets and recurring fees.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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This article originally published on Zacks Investment Research (zacks.com).

Will Barclays' Expansion Initiatives Accelerate Top-Line Growth?

Key Points
Alibaba looks cheap, but its earnings are falling sharply while AI and instant-commerce spending drain cash.
Cloud growth is promising, but it isn’t yet big enough to offset those costs.
For me, that makes BABA a risky turnaround story, not a once-in-a-decade bargain.
Alibaba (NYSE: BABA) closed below $115 on Aug. 31, putting it about 60% below its all-time closing high of $298.65 set in October 2020. The math on that drawdown may look like a gift. I do not think it is one, and here are three reasons why.
Reason No. 1: The earnings base is collapsing while revenue grows
This is the part that breaks the "cheap stock" framing. In the June quarter, Alibaba grew revenue 8.6% to RMB 268.95 billion. But net income excluding extra items fell 75.6% to RMB 10.54 billion from RMB 43.12 billion a year earlier. Basic earnings per share (EPS) dropped from RMB 18.57 to RMB 4.51.
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Profit margins compressed from 14.8% to 7%. When you buy a stock 60% off its high, you are implicitly assuming that the earnings that justified the old price still exist. Here, they have been cut by three-quarters. Adjust the multiple for that, and the discount shrinks fast.
Reason No. 2: The AI build-out consumes cash rather than generating it
Capital expenditure hit RMB 67.7 billion in the quarter, up 75% year over year. Free cash flow swung to an outflow of RMB 44.67 billion. Alibaba has spent RMB 190 billion of an RMB 380 billion three-year plan, so it is halfway through, and the spending is not linear.
Management was candid about the trade-off. The CFO said that at current margins, keeping cloud growth below 33% would generate positive cash flow, but the company is choosing to make aggressive investments instead. Break-even on AI capex takes three years at current gross margins, potentially 2.5 years if margins improve.
The cloud business is genuinely good. External revenue grew 45%, a 22-quarter high, with EBITDA margin at 12% and AI product revenue at an RMB 49.5 billion annual run rate. But it is not yet large enough to offset the group drag. The stock fell about 9% the day these results landed, despite that acceleration.
Reason No. 3: The instant commerce war has no clean exit
In 2025, HSBC (NYSE: HSBC) estimated that Alibaba lost as much as RMB 87 billion in instant retail over 12 months. The company incurs roughly RMB 2 to 5 per order. It treats this as customer acquisition cost rather than operational failure, and maybe that framing is right. However, it means a second uncapped spending program running alongside the AI build-out, funded by the same balance sheet.
There is a bigger point here that bulls tend to skip. Alibaba is fighting an expensive, grinding war for a domestic market it already knows well, against a competitor that will not fold. Meituan cut its quarterly operating loss from RMB 16.1 billion to RMB 6.5 billion and still holds roughly 70% of orders with an average value above RMB 30, where the margin actually lives.
Meanwhile, the market that people imagine Alibaba eventually cracking is close. Amazon (NASDAQ: AMZN) holds roughly 37.6% to 40.5% of the United States e-commerce market, with Walmart (NASDAQ: WMT) a distant second near 6.4%. Add Shopify's (NASDAQ: SHOP) 14%, and those two platforms account for about half of all United States online spending. Alibaba does not register in that table. It never has, and the combination of logistics density, Prime lock-in, and political sensitivity around Chinese platforms means it never will, in my opinion.
What the setup actually is
Alibaba has lots of cash reserves and can absorb this. Cloud growth is accelerating, AI products carry higher gross margins than the rest of the portfolio, and management targets RMB 100 billion in external cloud revenue by 2030 at 20% gross margins.
That is a credible long-term story. It is not a once-in-a-decade setup. A once-in-a-decade setup is a healthy business priced for disaster. This is a business voluntarily suppressing its earnings on two fronts simultaneously, with no committed end date for either, while free cash flow is negative.
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Alibaba Is Down 60% From Its All-Time High. Is This the Once-in-a-Decade Setup That Patient Investors Wait For?

For Immediate Release
Chicago, IL – August 31, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: NVIDIA Corp. NVDA, ExxonMobil Holdings Corp. XOM and HSBC Holdings plc HSBC
Here are highlights from Friday’s Analyst Blog:
Top Stock Reports for NVIDIA, ExxonMovil and HSBC
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including NVIDIA Corp., ExxonMobil Holdings Corp. and HSBC Holdings plc. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today's research reports here >>>
Today's Featured Research Reports
Shares of NVIDIA have gained +22.4% over the year-to-date period against the Zacks Semiconductor - General industry's gain of +28.5%. The company continues to benefit from broad demand for accelerated computing as customers build AI factories across hyperscalers, AI clouds, enterprises and sovereign buyers. Blackwell Ultra is supporting growth while Vera Rubin broadens the platform across GPUs, CPUs, networking and software.
Customer diversification, rising system content and recurring usage-linked opportunities extend the long-term runway, while cash generation supports substantial capital returns.
However, the investment case carries greater balance-sheet and execution exposure as NVIDIA expands supply commitments, customer credit support and long-dated guarantees. China remains largely closed to data center compute, while customer concentration, rising operating investment and competition add uncertainty. These offsetting forces support a balanced risk-reward profile.
(You can read the full research report on NVIDIA here >>>)
ExxonMobil's shares have gained +32.9% over the year-to-date period against the Zacks Oil and Gas - Integrated - International industry's gain of +33.4%. The company's investment case remains balanced between advantaged upstream growth and persistent market risk. Record Permian output, continued Guyana development and LNG expansion support long-duration production and cash flow, while structural cost savings and low leverage strengthen financial flexibility and shareholder returns.
However, earnings remain exposed to volatile oil, gas, refining and chemical markets, with Middle East disruptions adding operating uncertainty. The pause of the Baytown blue hydrogen project due to insufficient demand also highlights weaker commercial visibility for emerging businesses and greater policy sensitivity.
Product Solutions results can swing sharply with market conditions, while returns from newer investments depend on execution, customer adoption and durable demand over time.
(You can read the full research report on ExxonMobil here >>>)
Shares of HSBC have outperformed the Zacks Banks - Foreign industry over the year-to-date period (+36.6% vs. +19.6%). The company's second-quarter 2026 results were aided by higher revenues. Wealth momentum in Asia continues to benefit from higher customer activity, rising balances and net new money, while the completed Hang Seng Bank privatization and ongoing business divestitures will simplify operations and support medium-term efficiency.
A robust capital position and global footprint will likely support its financials. However, the company has guided for higher expected credit losses (ECL) this year because of overlays tied to Middle East events and absorption of an idiosyncratic fraud-related charge.
Operating expenses are expected to remain elevated as the company invests in technology and distribution capabilities. Further, revenue visibility will depend on volatile rates and activity.
(You can read the full research report on HSBC here >>>)
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
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This article originally published on Zacks Investment Research (zacks.com).

HSBC Holdings, plc.

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