Rising interest rates are worrisome for consumers, who have to shell out more for food, clothing and shelter. But for banks like HDFC Bank, they're a boon. HDFC stock has risen lately and its technical ratings are outstanding.
When looking for the best stocks to buy and watch, focus on those with rising relative price strength. HDFC stock fits that bill. Earnings for India-based HDFC Bank have grown at a double-digit clip for at least the past four quarters. And on Thursday the Relative Strength (RS) Rating for HDFC stock shot up from 87 to 91.
HDFC Stock Crashes Top Stocks Party
The 91 RS Rating means that HDFC stock performed in the top 9% over the past year. Market research shows that the stocks that go on to make the biggest gains typically have an RS Rating north of 80 as they begin their largest runs. HDFC stock just crashed through that barrier.
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Among its other key ratings, India-based HDFC has a 93 EPS Rating, of 99. Additionally it carries an 88 Composite Rating and a B+ Accumulation/Distribution Rating, indicating institutional investors are fairly heavy buyers of its stock.
HDFC stock hit a recent low at 50.61 on May 9 and turned upward. It climbed above its 50-day line on July 5 and topped its 200-day on Sept. 2. It's risen five of the past seven trading sessions despite this week's market carnage. On Thursday HDFC dipped 1.3% to 66.95. See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week line.
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Near $24 Billion Run Rate
Earnings grew 14% last quarter to 66 cents per share on a 7% increases in revenue to $5.597 billion. The prior three quarters its EPS rose 14%, 18% and 19%.
HDFC stock holds the No. 3 rank among its peers in the Banks-Foreign industry group. Banco De Chile and ICICI Bank are also among the top 5 highly rated stocks in the group.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
The unique IBD Relative Strength Rating identifies market leadership by using a 1 (worst) to 99 (best) score that indicates how a stock's price action over the last 52 weeks matches up against other publicly traded companies.
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