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 Holdings, plc.

Key Points
Analysts have been downgrading BYD's full-year delivery forecast.
BYD is currently on pace to fall short of 2025 delivery estimates.
BYD is facing a challenging Chinese market amid a brutal price war.
Over the past few years, BYD investors have been spoiled. The Chinese electric vehicle (EV) juggernaut swept through the country's domestic EV market with relative ease and then applied tremendous pricing pressure with a long list of highly affordable and compelling EV vehicle options. While BYD has been a no brainer winner over the past five years with its stock trading nearly 380% higher over that time, it might finally be showing signs of slowing down.
Time to jump off the BYD hype train?
BYD's monthly sales and deliveries have stagnated over the summer months, which are traditionally slower selling months, providing fresh challenges for China's EV giant. Not only is BYD dealing with slowing sales, but it's also being reprimanded vocally by the Chinese government for applying so much pressure on pricing that it's caused a race to the bottom, slowly but surely eating away at industry margins. BYD slashed prices by as much as 34% in May, causing increased government scrutiny on the industry.
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In fact, in what would be a rare miss for the top Chinese EV maker, the company looks like it's going to fall short of its annual sales target for 2025. BYD would need to sell roughly 560,000 units monthly through December to hit its sales target, which would be more vehicles sold in one month than it ever has in its history -- BYD sold just short of 515,000 vehicles last December.
And now analysts are stumbling over themselves to downgrade BYD's annual sales estimates. In fact, Deutsche Bank AG said it now expects BYD to deliver 5 million in wholesales, which is simply deliveries to dealer networks, which breaks down into 4 million domestic deliveries and 1 million overseas as the company continues its global expansion.
Morgan Stanley lowered its delivery projection to 5.3 million last month, noting that a smaller number of new models would be a drag on company deliveries. Perhaps even worse yet, Bloomberg Intelligence's Joanne Chen said BYD will be forced to sacrifice some profits, while maintaining large incentives and discounting, if it wants to stay on track and have a chance at reaching its delivery estimates.
"Regulatory scrutiny will temper direct cuts to vehicle sticker prices but competition isn't going away and retail promotions are still needed to sustain sales momentum," Chen said, according to Automotive News. "New model roll outs and steady tech upgrade are also crucial."
Global expansion
Further, when you back out BYD's global expansion and the estimated deliveries overseas, investors will see that BYD's domestic car deliveries in China are shrinking. In June, domestic deliveries slipped 8%, compared to the prior year. HSBC data shows that Geely was the largest gainer of market share during the first half of 2025, while BYD was one of the biggest losers.
Back to looking at BYD's global expansion, while the company is on pace to reach its forecast of 800,000 overseas deliveries, it still faces challenges in two emerging markets: Saudi Arabia and India. Both markets are potentially huge, but Saudi Arabia has EV market share of just 1% of total sales and faces high costs, charging infrastructure challenges, and extreme temperatures that make EV adoption slower in the region. India, the world's third largest automotive market, has similar problems and substantial tariff headwinds that can increase the cost of imported vehicles by 100% in some cases.
Ultimately, investors should prepare for an inevitable slowdown in BYD's expansion after years of rocketing higher in deliveries and stock price. That said, eventually it's likely that BYD and other Chinese automakers will enter the U.S. market, and that could provide the company's next massive boost in deliveries and financials -- but when that will happen is anyone's guess. Long-term investors should stay the course because even if BYD slows down from its rapid rise it's still in an incredible position to thrive globally in the years ahead.
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HSBC Holdings is an advertising partner of Motley Fool Money. Daniel Miller has no position in any of the stocks mentioned. The Motley Fool recommends BYD Company and HSBC Holdings. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is It Finally Time to Jump Off the BYD Bandwagon?

ICICI Bank Ltd.’s IBN net income for the first quarter of fiscal 2025 (ended June 30) was INR127.7 billion ($1.5 billion), up 15.5% from the prior-year quarter.
Results were driven by a rise in net interest income (NII), non-interest income and growth in loans. However, higher operating expenses, decline in deposits and provisions were the headwinds.
IBN’s NII & Fee Income Up, Expenses Rise
NII grew 10.6% year over year to INR216.3 billion ($2.5 billion). The net interest margin was 4.34%, down 2 basis points.
Non-interest income was INR72.6 billion ($847 million), up 13.7% year over year. Fee income increased 7.5% year over year to INR59 billion ($688 million).
In the reported quarter, IBN recorded a treasury income of INR12.4 billion ($145 million) compared with a treasury gain of INR6.1 billion ($71 million) in the prior-year quarter.
Operating expenses totaled INR113.9 billion ($1.33 billion), up 8.2% year over year.
ICICI Bank’s Loans Increase & Deposits Decrease
As of June 30, 2025, ICICI Bank’s total advances were INR13,641.5 billion ($159.1 billion), up 1.7% sequentially. Growth was primarily driven by a solid rise in business banking loans.
Total deposits declined marginally on a sequential basis to INR16,085.2 billion ($187.6 billion).
IBN’s Credit Quality: Mixed Bag
As of June 30, 2025, the net non-performing assets (NPA) ratio was 0.41%, which declined from 0.43% in the prior-year quarter. Recoveries and upgrades (excluding write-offs and sales) of NPAs were INR32.11 billion ($374 million) in the reported quarter.
In the fiscal first quarter, there were net additions of INR30.34 billion ($354 million) to gross NPA. Further, gross NPA additions were INR62.45 billion ($728 million), while gross NPA written-off was INR23.59 billion ($275 million).
Provisions (excluding provision for tax) increased 36.2% year over year to INR18.1 billion ($212 million). As of June 20, 2025, the bank held a total contingency provision of INR 131 billion ($1.5 billion).
Capital Ratios Strong for ICICI Bank
In compliance with the Reserve Bank of India's guidelines on Basel III norms, ICICI Bank's total capital adequacy was 16.97%. Tier-1 capital adequacy was 16.31% as of June 30, 2025. Both ratios were well above the minimum requirements.
Our Take on IBN
Increased consumer loan demand and growth in NII and non-interest income are anticipated to continue supporting ICICI Bank’s financials. However, elevated expenses, decreasing deposit balances and weak asset quality amid macroeconomic uncertainties are near-term challenges.
ICICI Bank Limited Price, Consensus and EPS Surprise
ICICI Bank currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Release Dates of Other Foreign Banks
HSBC Holdings plc HSBC is scheduled to announce second-quarter 2025 numbers on July 30. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
The consensus estimate for HSBC’s quarterly earnings has remained unchanged at $1.62 per share over the past week. The figure implies a decline of 1.8% from the prior-year quarter.
Deutsche Bank AG DB is slated to report second-quarter 2025 results on July 24.
The Zacks Consensus Estimate for DB’s quarterly earnings has remained unchanged at 78 cents per share over the past week. The figure implies an increase of 290% from the prior-year quarter.
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IBN's Q1 Earnings Rise Y/Y on Strong NII & Fee Income, Provisions Up

The following are today's upgrades for Validea's Growth/Value Investor model based on the published strategy of James P. O'Shaughnessy. This two strategy approach offers a large-cap value model and a growth approach that looks for persistent earnings growth and strong relative strength.
EASTMAN CHEMICAL CO (EMN) is a mid-cap value stock in the Chemical Manufacturing industry. The rating according to our strategy based on James P. O'Shaughnessy changed from 75% to 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Eastman Chemical Company is a global specialty materials company that produces a range of products found in items people use every day. Its segments include Advanced Materials (AM), Additives & Functional Products (AFP), Chemical Intermediates (CI), and Fibers. The AM segment produces and markets polymers, films, and plastics with differentiated performance properties for value-added end-uses in transportation; durables and electronics; building and construction; medical and pharma, and consumables end-markets. AFP segment manufactures materials for products in food, feed, and agriculture; transportation; water treatment and energy; personal care and wellness; building and construction; consumables, and durables and electronics end-markets. The CI segment sells intermediates for end-markets, such as industrial chemicals and processing, building and construction, health and wellness, and food and feed. Its Fibers segment manufactures and sells acetate tow and triacetin plasticizers.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of EASTMAN CHEMICAL CO
HSBC HOLDINGS PLC (ADR) (HSBC) is a large-cap value stock in the Money Center Banks industry. The rating according to our strategy based on James P. O'Shaughnessy changed from 80% to 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: HSBC Holdings plc (HSBC) is a banking and financial services company. Its business segments include Hong Kong, UK, Corporate and Institutional Banking (CIB), and International Wealth and Premier Banking (IWPB). Its Hong Kong business comprises retail banking and wealth and commercial banking of HSBC Hong Kong and Hang Seng Bank. Its UK business comprises UK retail banking and wealth (including first direct and M&S Bank) and UK commercial banking, including HSBC Innovation Bank. The CIB segment is formed from the integration of its commercial banking business (outside the UK and Hong Kong) with its global banking and markets business. The IWPB segment comprises premier banking outside of Hong Kong and the UK, its global private bank, and its asset management, insurance and investment distribution businesses. Its customers worldwide through a network covering 58 countries and territories. Its customers range from individual savers and investors to companies, governments and others.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of HSBC HOLDINGS PLC (ADR)
About James P. O'Shaughnessy: Research guru and money manager James O'Shaughnessy forced many professional and amateur investors alike to rethink their investment beliefs when he published his 1996 bestseller, What Works on Wall Street. O'Shaughnessy back-tested 44 years ofstock market datafrom the comprehensive Standard & Poor's Compustat database to find out which quantitative strategies have worked over the years and which haven't. To the surprise of many, he concluded that price/earnings ratios aren't the best indicator of a stock's value, and that small-company stocks, contrary to popular wisdom, don't as a group have an edge on large-company stocks. Today O'Shaughnessy is the Chief Investment Officer of O'Shaughnessy Asset Management.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Validea James P. O'Shaughnessy Strategy Daily Upgrade Report - 7/19/2025

HSBC Holdings Plc’s HSBC subsidiary, HSBC Continental Europe,has reached an agreement to sell its custody operations in Germany to BNP Paribas BNPQY. This potential transaction marks another milestone in HSBC’s ongoing simplification strategy for refocusing on being the leading corporate and institutional bank in Germany and Europe for its international clients.
Details of HSBC's Divestiture Deal
HSBC’s custody business in Germany focuses on domestic custody, clearing and depository services for German institutional clients.
Although the financial terms of the agreement remain undisclosed, the deal will involve the complete transfer of HSBC Continental Europe’s custody operations in Germany, including all assets and its related clients, to BNP Paribas. The transaction is expected to undergo a phased execution of the transfer of staff and clients starting in early 2026.
Further, the completion of the potential transaction is subject to regulatory approval and antitrust approvals and the conclusion of negotiations with the Works Council in Germany.
Post-transaction, both HSBC and BNP Paribas are committed to ensuring a smooth transition for clients and colleagues.
HSBC's Divestiture Deal Aligns With Simplification Effort
The decision to divest the custody unit in Germany is in line with HSBC’s October 2024 simplification strategy. The company is realigning its business segments as part of this effort. In sync with this, HSBC is winding down investment banking activities across the United Kingdom, Europe, and the United States and divestitures of its French life insurance arm, HSBC Assurances Vie (France), and private banking business in Germany. It also announced the sale of its business in South Africa.
In March 2025, its U.K. division, HSBC UK Bank plc, announced the sale of its U.K. private client trust business to Ludlow Trust. In February 2025, HSBC Bank Middle East, Bahrain branch, entered into a binding agreement to transfer its retail banking business in Bahrain to Bank of Bahrain and Kuwait B.S.C., one of the largest retail and commercial banks in Bahrain.
In the past couple of years, HSBC has completed the sale of its businesses in the United States, Canada, New Zealand, Greece, Russia, Argentina and Armenia, as well as the retail banking operations in France and Mauritius.
Driven by these efforts, HSBC aims to achieve $1.5 billion in annualized savings by the end of 2026. To implement the plan, HSBC will likely incur nearly $1.8 billion in total severance and other upfront charges by the end of 2026. The bank also intends to reallocate an additional nearly $1.5 billion of costs from non-strategic activities to priority growth areas over the medium term.
HSBC's Price Performance and Zack Rank
Over the past year, shares of HSBC have rallied 38.2%, outperforming the industry’s growth of 32.2%.
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.
Similar Steps Taken by Other Financial Firms
In June 2025, Huntington Bancshares HBAN announced its decision to streamline operations by divesting the corporate trust and institutional custody business of its subsidiary, The Huntington National Bank (Huntington), to Argent Institutional Trust Company (“AITC”). This strategic move reinforces the company’s commitment to enhancing its core financial offerings, positioning itself for greater efficiency and long-term profitability.
Post-transaction, AITC and Huntington will maintain a strategic relationship, with Argent continuing to provide corporate trust, escrow, and custody solutions to Huntington’s commercial banking clients.
In March 2025, State Street Corp. STT agreed to acquire global custody and related businesses outside of Japan from Mizuho Financial Group, Inc. These businesses aid the international investments of Mizuho’s Japanese clients.
Following the completion of the deal, STT will partner with Mizuho Financial Group to support its Japanese clients with global custody and related services. Meanwhile, Mizuho Financial Group will continue to offer trust and custody services for domestic assets within Japan, capitalizing on its expertise and network.
Zacks Names #1 Semiconductor Stock
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With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

HSBC's Arm to Exit German Custody Business Under Simplification Plan

Estée Lauder Companies (NYSE: EL) stock was smelling sweet on the last trading day of the week. It had an analyst's recommendation upgrade to thank for that; following the change, investors traded the shares up modestly. They were up by almost 1.3% in late-session trading that day, handily beating the more or less sideways trajectory of the S&P 500 index.
The latest in a series
Well before market open, HSBC's Erwan Rambourg changed his Estée Lauder recommendation to buy from his previous hold. He also made quite the adjustment to his price target, boosting it to $99 per share from the preceding $80.
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According to reports, Rambourg now believes Estée Lauder is positioned to essentially double its earnings between its fiscal years 2025 and 2027. This will derive from active cost cutting and reorganization measures, although he's anticipating improvements on the top line too.
The HSBC pundit isn't the only market professional becoming notably more bullish on the cosmetics sector mainstay. On Thursday, Evercore ISI's Robbert Ottenstein lifted his price target to $100 per share from $90 while maintaining an outperform (buy, in other words) rating. And on Monday, Deutsche Bank's Steve Powers upgraded the stock from hold to buy.
Good reasons for optimism
While Estée Lauder isn't the cheapest stock to buy, at least on the basis of its valuations, the company has shown recent signs of improvement. In Powers' analysis, he cited management's success in boosting its business in China, a key overseas market, and the effectiveness of its cost-reduction strategy. Estée Lauder could very well prove to be a turnaround story.
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HSBC Holdings is an advertising partner of Motley Fool Money. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends HSBC Holdings. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Estée Lauder Stock Was Bumping Higher Today

HSBC UK, a subsidiary of HSBC Holdings PLC HSBC has lowered its financial advice fee for premier customers as a part of promotional discount available until the end of the year.
The bank will now charge a 1% fee (with a minimum of £960) for customers taking advice, down from the typical 2.75% rate previously charged, with some exceptions.
Xian Chan, head of Premier Wealth at HSBC UK, said: “There are numerous scenarios where a customer might benefit from receiving financial advice, for example if they are planning for the long-term, have more sophisticated financial needs, or are facing a life milestone such as buying a home or preparing to retire.”
Rationale Behind HSBC’s Move
The move aligns with HSBC’s broader strategy to boost its offerings for “mass affluent” clients, including the relaunch of its Premier account in February 2025.
The bank recently reduced the minimum asset requirement to access its premier investment management service from £250,000 to £100,000. Additionally, it has introduced a switching incentive for new premier customers, offering eligible individuals a “VIP shopping experience” at Selfridges, which includes a £500 gift card and other perks.
Moreover, earlier this month, HSBC UK Private Banking adopted Addepar platform to enable wealth managers to provide robust services to ultra and high net worth clients. In mainland China, HSBC is growing its wealth business through lifestyle-focused centers and acquisitions like Citigroup’s retail wealth arm, digital upgrades and hiring talent.
HSBC Price Performance & Zacks Rank
Over the past six months, shares of HSBC have rallied 19.7%, underperforming the industry’s growth of 24.6%.
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.
Efforts to Expand Offerings by Other Finance Firms
Earlier this month, Carlyle Group Inc. CG announced a collaboration with Citigroup Inc. C to expand asset-backed financing opportunities within the fintech specialty lending space.
The collaboration will integrate Carlyle’s extensive investment network with the expertise of Citigroup’s Spread Products Investment in Technologies team, a leading venture equity investor in fintech specialty lending.
Similarly, U.S. Bancorp USB entered a partnership with Fiserv to integrate its Elan Financial Services credit card program into the latter’s Credit Choice solution. The collaboration aims to enhance digital card issuance capabilities, providing financial institutions with a seamless, integrated experience.
The integration of Elan’s credit card program into Fiserv’s Credit Choice solution strengthens USB’s digital-first strategy. This integration will enable consumers and small businesses to access both debit and credit card account details within a unified digital platform for consumers and small businesses. This will create a better user experience, allowing customers to manage both types of cards in one place.
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With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
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HSBC Lowers Financial Advice Fee to 1% for UK Premier Clients

The following are the top rated Financial stocks according to Validea's P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
HSBC HOLDINGS PLC (ADR) (HSBC) is a large-cap value stock in the Money Center Banks industry. The rating according to our strategy based on Peter Lynch is 98% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: HSBC Holdings plc (HSBC) is a banking and financial services company. Its business segments include Hong Kong, UK, Corporate and Institutional Banking (CIB), and International Wealth and Premier Banking (IWPB). Its Hong Kong business comprises retail banking and wealth and commercial banking of HSBC Hong Kong and Hang Seng Bank. Its UK business comprises UK retail banking and wealth (including first direct and M&S Bank) and UK commercial banking, including HSBC Innovation Bank. The CIB segment is formed from the integration of its commercial banking business (outside the UK and Hong Kong) with its global banking and markets business. The IWPB segment comprises premier banking outside of Hong Kong and the UK, its global private bank, and its asset management, insurance and investment distribution businesses. Its customers worldwide through a network covering 58 countries and territories. Its customers range from individual savers and investors to companies, governments and others.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of HSBC HOLDINGS PLC (ADR)
SYNCHRONY FINANCIAL (SYF) is a large-cap value stock in the Consumer Financial Services industry. The rating according to our strategy based on Peter Lynch is 96% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Synchrony Financial is a consumer financial services company focused on delivering digitally enabled product suites. The Company provides a range of credit products through financing programs it has established with a diverse group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations and healthcare service providers. It offers private label, dual card, co-brand, and general-purpose credit cards, as well as short- and long-term installment loans, and savings products through Synchrony Bank (the Bank). The Company primarily manages its credit products through five sales platforms such as Home & Auto, Digital, Diversified & Value, Health & Wellness and Lifestyle. The Bank offers directly to retail, affinity relationships and commercial customers, a range of deposit products, including certificates of deposit, individual retirement accounts (IRAs), money market accounts, savings accounts and sweep and affinity deposits.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of SYNCHRONY FINANCIAL
MAIN STREET CAPITAL CORP (MAIN) is a mid-cap value stock in the Misc. Financial Services industry. The rating according to our strategy based on Peter Lynch is 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Main Street Capital Corporation is a principal investment company primarily focused on providing customized debt and equity financing to lower middle market (LMM) companies and debt capital to middle market (Middle Market) companies. Its portfolio investments are typically made to support management buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in a variety of industry sectors. The Company invests primarily in secured debt investments, equity investments, warrants and other securities of LMM companies based in the United States and in secured debt investments of Middle Market companies generally headquartered in the United States. It owns several investment funds, including Main Street Mezzanine Fund, LP and Main Street Capital III, LP, (collectively the Funds), and each of their general partners. The Funds are each licensed as a Small Business Investment Company (SBIC) by the United States Small Business Administration (SBA).
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of MAIN STREET CAPITAL CORP
PATHWARD FINANCIAL INC (CASH) is a small-cap value stock in the Regional Banks industry. The rating according to our strategy based on Peter Lynch is 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Pathward Financial, Inc. is a financial holding company. The Company operates through its subsidiary Pathward, National Association (the Bank). The Bank operates through three segments: Consumer, Commercial, and Corporate Services/Other. The Consumer segment includes the banking-as-a-service (BaaS) business line, which collaborates with partners to navigate payment and lending needs. The Bank's capabilities range from prepaid cards and deposit accounts to payment processing and consumer lending. The Bank offers a variety of installment and revolving consumer lending products through its credit solutions. The Commercial segment offers a variety of products through its working capital, equipment finance, structured finance, and insurance premium finance lending solutions. The Corporate Services/Other segment includes certain shared services as well as treasury related functions, such as the investment portfolio, warehouse finance, wholesale deposit, and borrowings.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of PATHWARD FINANCIAL INC
WELLS FARGO & CO (WFC) is a large-cap value stock in the Money Center Banks industry. The rating according to our strategy based on Peter Lynch is 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Wells Fargo & Company is a financial services company. The Company provides a diversified set of banking, investment and mortgage products and services, as well as consumer and commercial finance, to individuals, businesses and institutions. The Company operates through four segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth & Investment Management. The Company provides consumer financial products and services, including checking and savings accounts, credit and debit cards, and auto, residential mortgage, and small business lending. In addition, the Company offers financial planning, private banking, investment management, and fiduciary services. It also provides financial solutions to businesses through products and services including traditional commercial loans and lines of credit, letters of credit, asset-based lending and leasing, trade financing, treasury management, and investment banking services.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of WELLS FARGO & CO
About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Validea's Top Financial Stocks Based On Peter Lynch - 6/23/2025

Looking for stocks that pay $100 in annual income? You've come to the right place. Even a small investment in the 10 stocks listed below can create a reliable cash income stream.
For this list, we're looking at U.S. stocks only that trade on major exchanges, with market caps of at least $10 billion. The dividend yield must also be above 5%, allowing you to generate $100 annual income with an initial investment of $2,000 or less.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
1. HSBC Holdings
With a market cap of more than $200 billion, HSBC Holdings (NYSE: HSBC) is one of the largest banks in the world. Shares have also consistently paid a large dividend, though the rate has been cut several times during the past decade due to a decline in earnings. Right now, the yield stands at roughly 5.5%, allowing you to generate $100 in annual dividend income with an investment of just $1,818.
2. Verizon Communications
After losing roughly one-quarter of its value during the past five years, Verizon's (NYSE: VZ) dividend yield is now up to 6.5%. While revenue and profit growth has stalled in recent years, the company has always been a consistent dividend payer, raising or maintaining its payout every year for more than a decade.
3. Pfizer
With a market cap of $135 billion, Pfizer (NYSE: PFE) is one of the largest publicly traded pharmaceutical companies in the world. The shares trade at just 17 times earnings -- a sizable discount to the S&P 500 index's average valuation of 28.5 times earnings. Pfizer's revenue growth has stalled in recent years, but the 7.2% dividend yield was reaffirmed in May.
4. British American Tobacco
A reliable dividend payer for years, British American Tobacco (NYSE: BTI) now delivers a dividend yield of 6.1%. While cigarette volumes are on the decline, nicotine use is still on the rise thanks to smokeless products, creating a stable revenue channel in a variety of economy conditions.
5. Altria Group
Similar to British American Tobacco, Altria Group (NYSE: MO) is a large nicotine business that delivers a reliable 6.9% dividend. Its cigarette volumes are also on the decline, but thanks to smokeless products growth, Altria has managed the industrywide transition well. Earnings are expected to grow by 2% to 5% this year, allowing the dividend payout to remain stable or even grow.
6. Enbridge
A longtime favorite of dividend investors, Enbridge (NYSE: ENB) operates one of the largest pipeline networks in the world, transporting hydrocarbons like natural gas and crude oil. This business largely operates like a toll road, collecting huge cash flows that can then be delivered back to shareholders in the form of a dividend. The current payout is about 6.1%.
7. BP
Another oil and gas business, BP (NYSE: BP) is a diversified, integrated oil company with exposure to nearly every aspect of the energy business. While there has been volatility along the way, shares still trade at the same price that they did back in 1997. The dividend yield of 6.2%, however, has kept investors satisfied despite minimal share price appreciation over the long term.
8. The Bank of Nova Scotia
Many American investors aren't too familiar with Canadian banks, but the Canadian banking industry is significantly more consolidated than the U.S. banking industry, creating more stability for the bigger players. One of the biggest Canadian banks right now is The Bank of Nova Scotia (NYSE: BNS), which currently delivers a 5.9% dividend yield.
9. Realty Income
With a 5.6% dividend yield, Realty Income (NYSE: O) is a favorite among real estate investors looking for high-income potential investments. The company essentially owns a huge portfolio of income-producing properties -- income it then redirects back to shareholders in the form of dividends.
10. Pembina Pipeline
Pembina Pipeline (NYSE: PBA) is significantly smaller than Enbridge. Its dividend payout has also varied over the years. But its pipeline network still generates plenty of cash, enough to support a current dividend yield of 5.7%.
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HSBC Holdings is an advertising partner of Motley Fool Money. Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Enbridge, Pfizer, and Realty Income. The Motley Fool recommends BP, Bank Of Nova Scotia, British American Tobacco P.l.c., HSBC Holdings, Pembina Pipeline, and Verizon Communications and recommends the following options: long January 2026 $40 calls on British American Tobacco and short January 2026 $40 puts on British American Tobacco. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

10 Stocks That Pay $100 or More in Dividends

HSBC’s stock (NYSE: HSBC) fared reasonably well this year, rising by about 21% since early January. This compares to rival JP Morgan (NYSE: JPM) which remains up by about 10% over the same period. So what’s happening with HSBC stock?
HSBC’s financials have remained reasonably strong. The banking major reported better-than-expected earnings for Q1 2025. Although revenues declined 15% from last year to $17.65 billion, led by business disposals in Canada and Argentina, profits before tax came in at $9.48 billion, declining by 25% compared to last year, although they were well ahead of forecasts. Profit before tax surged by nearly 317% compared to the previous quarter, reflecting strong sequential growth. Strong performances in the Wealth business, Foreign Exchange, and Debt and Equity Markets have been driving profits and revenue in recent quarters. As an aside, market leadership is in fact one of the factors we consider in constructing the market-beating Trefis High Quality portfolio (HQ) – a strategy of 30 stocks that targets long-term value creation. HQ has outperformed the S&P 500 and achieved returns greater than 91% since inception.
Image by Kevin from Pixabay
Fee Based Product Growth
HSBC is increasingly relying on fee-based products in segments such as its Wealth and Personal Banking division to drive growth. Revenue for the Wealth business was up 21% year-over-year during Q1, led by strong client acquisition and activity in Asia, particularly Hong Kong and India. HSBC has been increasingly focusing on wealthy customers in Asia, with its Hong Kong business seeing a 29% sequential growth in new customers.
The Global Private Banking segment has also been faring well, driven by strong brokerage and trading activity in Asia. HSBC is rolling out new wealth products and promotions, including cash incentives for fresh inflows, to attract and retain premium clients. Asset management revenues have been driven by growing assets under management, positive market movements, and increased life insurance-related revenue. The current volatility in the stock markets is also expected to help the wealth business to an extent, as people increasingly seek out advisory services, while brokerage and trading businesses are also likely to benefit.
Outlook
The banking giant cautioned that loan demand and credit quality may suffer going forward due to the broader impact of U.S. President Donald Trump’s tariffs on major trading partners. Although the earnings don’t yet reflect the full impact of the recently announced reciprocal tariffs, HSBC is a largely trade-focused banking company compared to peers. During itsearnings callin late April, HSBC said that it was seeing a notable decline in transaction volumes along the U.S.-China corridor for sectors that were not exempt from tariffs. The bank noted that an economic slowdown could have a low single-digit impact on its revenues for the fiscal year, while seeing up to $500 million in additional expected credit losses. That said, progress in U.S.-China trade negotiations in recent weeks has raised some hopes of easing tensions.
There are a couple of reasons for optimism about HSBC stock. First, its valuation remains fair, with the stock trading at just over 1x tangible book value (net assets minus goodwill). The bank is also focused on improving efficiency and cutting costs, targeting annualized savings of $1.5 billion by the end of the next year. In January, HSBC outlined plans to scale down its mergers and acquisitions and some equities businesses in Europe and the Americas, while shifting its focus to its more profitable Asian markets which are seeing faster economic growth, rising wealth, and availability of more low-cost deposits. HSBC is doubling down on capital returns, having recently raised its share repurchase authorization to $3 billion, with the new buyback expected to be completed before its 2025 interim results.
This could also help support the stock price. Additionally, the bank is aiming for a mid-teens return on average tangible equity between 2025 and 2027, which is above the industry average. On the other hand, HSBC’s core net interest income (NII) could remain under pressure due to lower interest rates, posing a challenge to overall revenue growth, as net interest income accounts for roughly half of the bank’s total revenue. See our analysis of HSBC’s valuation for a closer look at what’s driving our valuation for HSBC stock.
Preserve & Grow Wealth With Risk-Focused Quality Portfolios
While HSBC could provide steady growth, the Trefis HQ portfolio is focused on long-term value creation. With a collection of 30 stocks, it has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride as evident in HQ Portfolio performance metrics.
Invest with Trefis Market-Beating Portfolios
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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UnitedHealth Group (NYSE: UNH) might want to change its stock ticker from "UNH" to "UGH." The latter better captures the feelings of the healthcare giant's shareholders in recent months.
A string of problems has caused UnitedHealth Group's share price to plunge roughly 50% from the peak set in the fourth quarter of 2024. Some analysts have downgraded the stock, with HSBC recommending that investors reduce their holdings and slashing its price target.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
I have a different opinion, though. I think it's time to buy UnitedHealth Group stock. Here are three reasons why.
1. Most of the company's problems should be temporary
I don't think investors should ignore UnitedHealth Group's issues. However, the challenges should be viewed with a long-term perspective. I suspect most of the problems the company faces should be temporary.
UnitedHealth Group has already largely moved past the cyberattack that occurred in February 2024. Although it cost the healthcare company over $2 billion, that issue has already proven to be a short-lived one.
Higher Medicare Advantage costs are the main culprit behind UnitedHealth Group's suspension of its 2025 full-year guidance. But the company says that it expects to return to growth in 2026. I believe this prediction because it makes sense. Insurers sometimes incur higher-than-anticipated costs and feel the pain for a while. However, once they adjust premiums, the problem goes away.
UnitedHealth Group announced the sudden departure of former CEO Andrew Witty at the same time it withdrew its 2025 outlook. Any worries investors might have had surrounding this move probably dissipated quickly after they learned Stephen Hemsley was returning to run the company. Hemsley served as CEO from 2006 through 2017, a period when UnitedHealth Group stock more than tripled.
2. The two biggest threats to UnitedHealth Group are iffy
I also view the two biggest threats to UnitedHealth Group as iffy. What are those threats? An alleged U.S. Department of Justice criminal investigation of the company and President Trump's stated goal to eliminate pharmacy benefits managers (PBMs).
Noted that I used the word "alleged" to describe the U.S. Department of Justice probe. The Wall Street Journal reported on May 14, 2025, that "people familiar with the matter" revealed that the DOJ had launched a criminal investigation of UnitedHealth Group for possible Medicare fraud. However, the company quickly responded that it hadn't been notified of any DOJ investigation. That status hasn't changed.
President Trump did announce that he wants to "cut out the middleman," a clear reference to PBMs. That's easier said than done, though, to put it mildly.
Removing PBMs from the U.S. healthcare system would require a detailed, comprehensive plan that so far has not been provided. That plan would also have to pass in both the Senate and the House of Representatives. You can bet that the PBM industry, including UnitedHealth Group, would lobby fiercely against any such legislation. I think this threat, while serious, has a relatively low probability of actually materializing.
3. The price is right
Finally, I think all these issues are fully baked into UnitedHealth Group's share price. The stock currently trades at a forward price-to-earnings ratio of around 13.3. That's well below the S&P 500 healthcare sector forward earnings multiple of 16.6. It's also the lowest valuation for UnitedHealth Group in more than a decade.
Could the stock fall further? Maybe, but I believe that UnitedHealth Group's share price has bottomed out. You might have noticed that UnitedHealth Group's share price has traded in a relatively narrow range since the steep decline in April and May. This trading pattern seems to confirm my view.
Any good news for UnitedHealth Group could provide a nice catalyst. I predict that the company will have some positive developments in the not-too-distant future, potentially including new full-year guidance that calms investors. If I'm right, buying UnitedHealth Group stock now could pay off handsomely.
Should you invest $1,000 in UnitedHealth Group right now?
Before you buy stock in UnitedHealth Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and UnitedHealth Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $649,102!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $882,344!*
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See the 10 stocks »
*Stock Advisor returns as of June 9, 2025
HSBC Holdings is an advertising partner of Motley Fool Money. Keith Speights has no position in any of the stocks mentioned. The Motley Fool recommends HSBC Holdings and UnitedHealth Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Indicator	TTM Median
P/E	10.76 13.37
Price/Sales	4.26 1.92
P/B	0.89 1.10
P/FCF	1.95 10.25

Indicator	TTM Median
ROE	13.43 10.06
ROA	0.87 1.13
ROI	9.10 6.38
Net Worth	170.89 0.99
Quick Ratio	0.00 1.40
Current Ratio	0.96 0.96

Indicator	TTM Median
Net Profit Margin	80.85 15.86
Operating Margin	19.77 21.72
Gross Margin	100.00 68.17
Return on tangible equity	11.24 12.03

Indicator	TTM Median
EPS	0.57 0.60
EPS Forecast	0.90 0.61
Revenue	9.97B 85.50M
Gross Profit	9.97B —
EBITDA	0.00 —

HSBC Holdings, plc.

Indicators HSBC

Valuation

Debts

Efficiency

Other ratios

Revenue