Is ICICI Bank (USA Stocks:IBN) moving to revert?
 | By Nico Santiago | Macroaxis Story |
The average rating for ICICI Bank Limited stock is 'Strong Buy', as determined by four analysts. The question arises, is this consensus based on technical analysis? Typically, technical analysis involves the use of price momentum, patterns, and trends by studying historical prices. The objective is to identify signals based on the market sentiment of ICICI Bank, which is essentially investors' perception of the bank's future value. Let's delve into some aspects of ICICI's technical analysis.
Deep-dive analysis
ICICI Bank Limited, a key player in the Diversified Banks industry, presents a compelling investment opportunity from a technical perspective. The bank's stock has a relatively low beta of 0.802, indicating less volatility compared to the market, and a standard deviation of 1.05, suggesting a moderate level of price volatility. The bank's net income from continuing operations stands at a robust 354.6 billion, with net interest income contributing a significant 705.2 billion to the bank's earnings. The bank's payout ratio is a modest 0.1572, indicating a sustainable dividend policy. Furthermore, the stock's price to earnings (PE) ratio is 17.754, which is fairly reasonable in the current market environment. With a Wall Street target price of $30.1, significantly higher than its 52-week low of $19.1814, ICICI Bank Limited stock appears to have considerable upside potential.Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Gabriel Shpitalnik
ICICI Bank Limited, a key player in the Banks - Regional industry, has been catching the eye of investors due to its compelling technicals. With a 52-week range of 19.1814 to a high of 24.5967, the stock has demonstrated substantial volatility, supported by a beta of 0.802. The bank has shown robust financial health, boasting a net income of 335.7B and an operating income of 747.3B. The company's net interest income stands at a hefty 705.2B, derived from an interest income of 1210.7B. The bank's valuation real value is pegged at 26.71, with a market value of 22.26, suggesting potential undervaluation. The stock is currently trading above its 50-day moving average of 23.1458, indicating a positive trend. Analysts are bullish on the stock, with an overall consensus rating of 'Strong Buy' and a target price estimated value of 30.633. These factors, coupled with a low payout ratio of 0.1572, make ICICI Bank Limited a compelling investment opportunity. While some millennials may be indifferent towards the banking sector, it's worth revisiting ICICI Bank Limited in terms of its current potential. As we have previously suggested, ICICI Bank appears to be on a downward trend as insiders become increasingly bearish due to heightened sector volatility. ICICI Bank Limited's performance closely mirrors the market, with the company's returns being highly responsive to market fluctuations. As the market rises or falls, the company is expected to follow suit. The robust fundamental drivers of the firm may suggest potential short-term price movements for insiders. ICICI Bank Limited is set to announce its earnings tomorrow, with the upcoming quarterly report expected on October 27, 2023.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as ICICI Bank. Your research has to be compared to or analyzed against ICICI Bank's peers to derive any actionable benefits. When done correctly, ICICI Bank's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in ICICI Bank Limited.
Using predictive technical analysis, we can analyze different prices and returns patterns and diagnose historical swings to determine the real value of ICICI Bank Limited. In general, sophisticated investors focus on analyzing ICICI Bank stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build ICICI Bank's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of ICICI Bank's intrinsic value. In addition to deriving basic predictive indicators for ICICI Bank, many experienced traders also check how macroeconomic factors affect ICICI Bank price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of ICICI Bank's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How does ICICI Stands against Peers?
Analyzing ICICI Bank competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to ICICI Bank across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be. Check out ICICI Bank Competition DetailsICICI Bank Gross Profit
ICICI Bank Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing ICICI Bank previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show ICICI Bank Gross Profit growth over the last 10 years. Please check ICICI Bank's gross profit and other fundamental indicators for more details.
Breaking down ICICI Bank Further
The company has a beta of 1.0219. As returns on the market increase, ICICI Bank returns are expected to increase less than the market. However, during the bear market, the loss on holding ICICI Bank will be expected to be smaller as well. The beta indicator helps investors understand whether ICICI Bank moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if ICICI deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. ICICI Bank Limited reported the last year's revenue of 56.68 M. Total Income to common stockholders was 335.68 B with profit before taxes, overhead, and interest of 1286.95 B. ICICI Bank Limited, a prominent player in the Banks - Regional industry, presents a compelling investment opportunity based on recent technical analysis. The stock, traded on the NYSE, has shown a steady performance with a five-year return of 1.01%. The bank's net asset stands at a staggering 17526.37B, and its market capitalization is 79.38B.The bank's operating margin is 0.37%, and it has a payout ratio of 0.1572, indicating a stable financial position. ICICI Bank's net income is 335.68B, with a profit margin of 0.27%. The bank's EBITDA is 762.14B, and it has an operating income of 747.3B. These figures demonstrate the bank's ability to generate significant profits. The bank's shares are also largely owned by institutions, at 19.35%, which shows strong market confidence. The bank's technicals are further supported by a beta of 0.8, indicating less volatility compared to the market. However, investors should note the bank's probability of bankruptcy stands at 48.90%. Despite this, the bank's current valuation of 703.76B and a target price of 30.1 suggest potential for growth. Overall, ICICI Bank Limited stock presents a potentially rewarding investment opportunity. .
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