Is ICICI Bank (USA Stocks:IBN) moving to revert?

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.
Published over six months ago
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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.
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.
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.

How important is ICICI Bank's Liquidity

ICICI Bank financial leverage refers to using borrowed capital as a funding source to finance ICICI Bank Limited ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. ICICI Bank financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to ICICI Bank's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of ICICI Bank's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between ICICI Bank's total debt and its cash.

ICICI 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. .

ICICI Bank has 100 percent chance to finish above $22 in November

The recent performance of ICICI Bank Limited shows a promising trend for investors. The bank's coefficient of variation, a measure of risk-adjusted performance, has decreased to -831.36, indicating a less volatile and more predictable performance. This trend, along with the bank's robust financials and strategic initiatives, suggests a high likelihood that ICICI Bank's shares will end above $22 by the end of November. Investors seeking stability and growth potential should consider adding this stock to their portfolio. As of October 20th, ICICI Bank has a standard deviation of 1.05, and a coefficient of variation of -831.36. Technical analysis of ICICI Bank allows investors to use historical prices and volume momentum to predict future price directions. In simple terms, this information can be used to determine if the company will continue to follow its pattern of historical price patterns, or if prices will revert. We have examined thirteen technical drivers for ICICI Bank Limited, which can be compared to its competitors.
We recommend checking ICICI Bank Limited's standard deviation, maximum drawdown, as well as the relationship between the maximum drawdown and kurtosis to determine if ICICI Bank is priced accurately, given its latest price of 22.26 per share. Considering that ICICI Bank Limited has an information ratio of -0.033136, we strongly advise you to verify ICICI Bank Limited's regular market performance to ensure the company's future sustainability. In conclusion, ICICI Bank Limited presents a compelling investment opportunity. The bank's real value is currently estimated at $26.71, significantly higher than its market value of $22.26. This discrepancy suggests a potential undervaluation, providing an attractive entry point for investors. Moreover, the consensus among the three analysts covering the stock is a 'Strong Buy', with four strong buy recommendations. The estimated target price ranges from $29 to $32.9, with an average target price of $30.633, indicating a substantial upside potential. Therefore, considering these factors, ICICI Bank Limited is a stock worth considering for your portfolio. .

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Editorial Staff

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