Barclays (BCS) Gains But Lags Market: What You Should Know
Barclays (BCS) closed the most recent trading day at $8.39, moving +0.84% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.62%. Elsewhere, the Dow gained 1.17%, while the tech-heavy Nasdaq added 12.91%.
Prior to today's trading, shares of the financial holding company had lost 10.25% over the past month. This has lagged the Finance sector's loss of 4.02% and the S&P 500's loss of 4.54% in that time.
Barclays will be looking to display strength as it nears its next earnings release.
BCS's full-year Zacks Consensus Estimates are calling for earnings of $1.71 per share and revenue of $32.28 billion. These results would represent year-over-year changes of +12.5% and +9.28%, respectively.
It is also important to note the recent changes to analyst estimates for Barclays. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.19% higher within the past month. Barclays currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, Barclays is holding a Forward P/E ratio of 4.88. This valuation marks a discount compared to its industry's average Forward P/E of 8.05.
The Banks - Foreign industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 22, which puts it in the top 9% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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