one FTSE 100 The inventory I’m paying attention to Barclays (LSE: BARC).. For me, the “Blue Eagle” bank has the potential to help the health of the UK economy, as the bank’s earnings are so cyclical. Of course, Barclays’ stock price raged in 2020, but has skyrocketed since its lows in the spring of 2020. Indeed, stocks have barely missed a beat since February and have steadily risen to their current highs. But has the stock lost momentum after the strong move of BARC?
Stock prices fall and soar
It’s been a long time since Barclays shares reached their first high in five years, reaching early 2017. On February 23, 2017, BARC reached a daytime high of 244.4p and closed at 229.05p.However, since then, inventories have steadily declined by 2019. 179.64p. Then there was the coronavirus and the collapse of the world economy. Bank stocks melted down and plunged to a daytime low of 73.04p on March 19, 2020. After that, it bounced strongly last summer and closed again at 91.55p on September 25, last year.
However, on “Vaccine Monday” (November 7, 2020), news of effective Covid-19 vaccines sent soaring strains around the world. BARC has regained its vibrancy and closed 2020 with 146.68p.Today, as I write, Barclays stocks are trading around 195.4p, almost doubled (+ 92.5%) in the last 12 months. In addition, recent stock prices have been strong, rising 15.6% in three months.This puts it in 12th among FTSE 100 risers since July 15th. But did BARC run that course, or is there more fuel in the tank for future benefit?
Would you like to buy BARC today?
Barclays’ share price is just 3p below its 52-week high, isn’t this overkill and too fast? I’m not sure, but the fundamentals of a veteran value investor still look good, so there may still be room for growth. At current prices, the bank has a market value of £ 32.9 billion, making it a heavyweight FTSE 100. The stock is traded with a low price-earnings ratio of 7.4 and a rate of return of 13.5%. BARC’s dividend yield is modest at 1.5% per year, following the withdrawal of dividends in 2020 at the request of UK regulators. For me, there is plenty of room for Barclays to raise dividends significantly.
I don’t have BARC right nowBut when the stock price drops below the current level, I want to buy it. But today I don’t buy BARC anyway. Purely because I want to wait for the big news in a week. Next Thursday (October 21st), Bank announced the results for the third quarter of 2021. This is enthusiastically expected by both institutional and individual investors. If earnings continue to increase and bad debts continue to decrease, this can bring new life to equities. This may also be good news for BARC if the group’s international and investment banking sectors are doing well.
Inflation, supply chain constraints, and rising energy prices have also hit consumers hard, which can be bad news for banks. Therefore, we may not buy at the current Barclays stock price, but may be willing to fall or further improve the underlying fundamentals. For now, I’ve been sitting on the fence for a week until I see the next set of figures!
Cliff Darcy There are no positions in any of the listed shares. Motley Fool UK recommends Barclays. The views expressed about the companies mentioned in this article are those of the author and may differ from the official recommendations made by subscription services such as Share Advisor, Hidden Winners, and Pro. Here at The Motley Fool, by exploring different insights, Better investors than us.
Barclays shares (LSE: BARC) have risen 16% in three months. What’s next?
https://www.fool.co.uk/investing/2021/10/14/the-barclays-share-price-lse-barc-is-up-16-in-3-months-what-next/ Barclays shares (LSE: BARC) have risen 16% in three months. What’s next?