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16 June 2021
10:26 hour

The Barclays share price is rising: should I buy now?

The Motley Fool UK

10/06/2021 - 17:31

The Barclays share price is up 45% in the past year. Royston Roche makes a deep dive analysis on this stock. The post The Barclays share price is rising: should I buy now? appeared first on The Motley Fool UK.


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  1. The Barclays share price is rising in February. Should I finally buy for my ISA? (22/02/2021 - The Motley Fool UK)
    Barclays (LSE: BARC) shares dipped a little on results day last Thursday, which often happens if the figures don’t quite match up to hopes. But the Barclays share price has since bounced back. The bank has been near the top of my Stocks & Shares ISA candidates list for years. Should I finally buy?  These short-term ups and downs don’t mean much to long-term investors. And though Barclays shares have gained 68% since September, we’re still looking at a 15% drop over the past 12 months. That’s worse than the 10.5% FTSE 100 fall over the same period. So why the relative underperformance? For me, part of the reason ties in with what I see as the biggest risk right now. And it might be the cause of the market’s hesitation over the results. I’m talking of bad debts, and the banking sector is awash with them. As a result of the pandemic, Barclays has recorded impairment charges of £4.8bn. I wasn’t expecting a figure that big. And I’m not surprised the Barclays share price took a minor hit after investors saw it. The impairment trend does appear to be improving though, with the fourth quarter’s charge coming in 19% below Q3. And there was one significant piece of encouraging news — Barclays announced a full-year dividend. It’s only 1p per share, and it wasn’t unexpected. But it’s a start. Banking sector weakness We remember how well the banking sector performed after dividends were reintroduced after the financial crash, don’t we? Oh, hang on, it didn’t do very well at all. No, the Barclays share price has fallen 9.5% over the past five years. And it’s down 48% over 10 years. For me, when deciding whether to add Barclays shares to my investment portfolio, what matters is the bank’s long-term prospects. That’s post-Brexit Britain, something that the Covid-19 pandemic has pushed to the back of my mind from time to time. And I have to remind myself that the future of UK banking still looks very uncertain. From an investment perspective, I don’t worry too much about the economy in 2021. I’m more interested in how things will look in 2026, and in 2031 and beyond. The way some people talk, we could be forgiven for assuming we’ll bounce right back to 2019 levels of relative prosperity the moment we’ve all had our vaccinations. But I’m not that optimistic, and foresee a few tough years ahead. Barclays share price valuation Taking into account my cautious economic outlook, how does the Barclays share price look? I can’t help seeing a lot of pessimism still built into it, and I think it could actually be good value. Analysts are forecasting double-digit earnings growth for the current year. And Barclays’ price-to-tangible-asset-value is only around 0.5 — which looks cheap. At the current Barclays share price, I find myself torn. But I think I’ll keep away for two key reasons. One is that I already own banking shares in Lloyds Banking Group, which is probably enough sector exposure. The other is that I think there are better buys out there, facing less uncertainty. And being over 60, I prefer less risk these days. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading 2 of the best shares to buy now Barclays restores dividends, but I reckon these are 2 of the best stocks to buy now At over 150p, here’s what I’m doing about Barclays shares Is the Barclays share price too cheap after recent falls? ISA investing: why I think the cheap Barclays share price could be an investment trap! Alan Oscroft owns shares of Lloyds Banking Group. The Motley Fool UK has recommended Barclays and Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Barclays share price is rising in February. Should I finally buy for my ISA? appeared first on The Motley Fool UK.
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  2. The Barclays share price is up nearly 30% in 2021. Is it the bank to buy? (29/04/2021 - The Motley Fool UK)
    I was pleased to see an upbeat first-quarter from Lloyds Banking Group Thursday, and Barclays (LSE: BARC) is set to reveal its own quarter figures on Friday. The Barclays share price has beaten Lloyds hands down since the Covid-19 pandemic began, so is it the better bank to buy now? Since the beginning of 2021, Barclays shares have gained 29% against 25% from Lloyds. The FTSE 100 is up just 8%. But for the bigger picture, we need to look back over 2020. Though both banks crashed about equally hard, Barclays has come back far stronger. Since mid-February last year, the Barclays share price is in positive territory, up 7%. Against that, Lloyds is still down 21%. The rest of the banks are lagging behind Barclays too. NatWest Group, the other bailed out bank (in its previous guise as Royal Bank of Scotland) is way behind. And even HSBC Holdings is 20% down on pre-pandemic prices. Is Barclays really the best of the sector? More diversification Barclays’ wider international exposure must be a part of the market’s preferential support for the Barclays share price. The pandemic might have taken our eyes off it for a while, but Brexit had previously been seen as the big threat. Lloyds’ response, for example, has been to turn to domestic banking and refocus just on the UK. That might turn out well, but it does raise uncertainties. We don’t have a past UK-only Lloyds to compare to, so we’re having to wait to see how it turns out. Brexit could harm those banks still with European ambitions too. Our exit agreement might allow tariff-free movement of goods, but not services. Barclays earns around half of its revenue here in the UK. The Americas make up by far the second biggest slice, accounting for 34%. There’s little European risk there. There’s a difference in business sectors too. While the rest of the UK banks have backed away from investment banking following the big crash, Barclays has held on with enthusiasm. Well, HSBC is still in that business too, but it’s not really a UK bank even though it has a listing in London. Barclays share price support Profits in investment banking have been rising in the US. So that also appears to underlie a part of the Barclays share price strength in 2021. American banks have been reporting big profits in recent months, and investors will be hoping that Barclays can do the same. I’m cautious of apparent banking gains in 2021, however. We saw that Lloyds’ first quarter profit was buoyed by the reversal of some of its bad debt provisions. That added a £323m impairment credit to the bottom line, where the first quarter of 2020 saw a £1.4bn provision. The same thing has helped boost US banks in recent months, and I expect to see something similar in Barclays’ Q1 update. Anyway, after all this, would I buy Barclays today? I might be missing a good opportunity but no, I wouldn’t right now. It’s simply because there are too many uncertainties and I find it too hard to properly judge today’s Barclays share price. But I will keep watching. 5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic… And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains. But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times. Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down… You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm. That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now! More reading Why the Barclays share is my FTSE 100 banking pick  Barclays share price versus Lloyds share price: which would I buy today? Here’s why I think the Barclays share price could climb in 2021/22 Why I think the Barclays Bank share price could keep climbing Can the Barclays (BARC) share price keep climbing? Alan Oscroft owns shares of Lloyds Banking Group. The Motley Fool UK has recommended Barclays, HSBC Holdings, and Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Barclays share price is up nearly 30% in 2021. Is it the bank to buy? appeared first on The Motley Fool UK.
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  3. Barclays share price versus Lloyds share price: which would I buy today? (20/04/2021 - The Motley Fool UK)
    Next week might be exciting for long-suffering UK bank shareholders. The UK’s Big Five banks — including Lloyds Banking Group (LSE: LLOY) and Barclays (LSE: BARC) — all report first-quarter earnings. HSBC Holdings leads on Tuesday, with Barclays and NatWest Group finishing on Friday. With US banks reporting bumper profits for Q1, I’m monitoring the Barclays share price and the Lloyds share price to see which offers the better bargain. Here’s what I think. The Lloyds share price and Barclays share price slip At its 52-week peak, the Lloyds share price closed at 45.02p on 13 April 2021. Now it stands at 42.62p, dipping 2.4p (5.3%) in a week. Likewise, Barclays shares peaked at 190.34p on 30 March 2021. They have since slid to 183.78p, losing 6.56p (3.4%). Maybe these shares will get an uplift when banks unveil their figures next week? After all, the banking regulator has allowed British banks to resume paying dividends. Also, three of the Big Five are buying back their shares, boosting future returns for shareholders who sit tight. This could provide support for Barclays shares and the Lloyds share price. Already, the FTSE 350 Banks index is the third-best performer of 40 FTSE 350 sectors in 2021, rising 15.5% this calendar year. Lower loan losses would be good for banks Across the Atlantic, the Big Four US banks made blow-out profits as financial markets boomed. They also boosted their bottom lines by reversing much of last year’s loan-loss reserves. With UK banks beefing up bad-debt provisions in 2020, some of these billions could flow back, pushing up profits. Again, this could boost the Lloyds share price and Barclays shares. Similarly, if demand for credit picked up in Q1/21 and loan growth resumed, this would be a relief for banks. But if credit keeps shrinking, or loan losses rise, that spells bad news. British banks are also keen to arrest shrinking net interest margins (NIMs). The NIM is the margin/spread between lending rates and savings rates. In 2020, Barclays UK’s NIM was 2.61%, the best of the Big Five, while Lloyds’ NIM was 2.52% (placing second). If these two banks can sustain or improve their NIMs, then this might underpin the Lloyds share price and Barclays stock. But if NIMs keep falling, that’s another body blow. Best stocks to buy now: Barclays or Lloyds? As a value investor, I use company fundamentals to guide my buying decisions. Thus, when weighing up the Lloyds share price, I compare it to peers and the wider market. Here’s how Barclays and Lloyds stack up, head to head.   2021E Q4 2020 2021E 2021E   P/E P/B Dividend Yield Dividend Cover Lloyds 10.8 0.83 4.0% 2.29 Barclays 11.0 0.69 2.9% 3.09 Source: A J Bell Based on price-to-earnings (P/E) ratio, the Lloyds share price is slightly cheaper than Barclays. Also, Lloyds has a higher dividend yield (4.0%/year v 2.9%), but the Barclays pay-out is better covered by earnings. In terms of price-to-book (P/B) ratios, Barclays offers greater ‘bank for my buck’ (0.69 at Barclays v 0.83). As a value hunter, Lloyds appears to be better bet for me. But Barclays, unlike Lloyds, is still big in investment banking. And this sector boomed in Q1/21 for US banks. So Barclays might enjoy an extra boost from higher investment banking revenues. That’s why I’m sitting on the fence. Today, I’d happily buy both the Lloyds share price and Barclays shares! One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading After a 15% rise in 2021, is the Lloyds share price heading for a strong recovery? Why I’d forget the Lloyds share price and buy this UK bank share! Here’s why I think the Barclays share price could climb in 2021/22 As the FTSE 100 hits 7,000, I’d buy its only penny stock I think these 2 FTSE 100 stocks might be among the best shares to buy today Cliffdarcy has no position in any of the shares mentioned. The Motley Fool UK has recommended Barclays and Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Barclays share price versus Lloyds share price: which would I buy today? appeared first on The Motley Fool UK.
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  4. Buying the Lloyds Bank share? Here are 3 metrics I’d consider first (30/03/2021 - The Motley Fool UK)
    The Lloyds Bank (LSE: LLOY) share price has had a good run in the last six months. Vaccine development and the stock market rally, being allowed to pay dividends again, and an improved economic outlook have given momentum to the stock.  So should I buy it now? I’d consider the following three metrics first before making the call: #1. Share price change In the past half-year, the Lloyds Bank share price has risen more than 60%. This is strong growth, but the question I would ask here is – how does it compare to its peers’ performance?  Of the other FTSE 100 banking entities – Barclays, HSBC, Standard Chartered and NatWest – I compared it to the first two. Standard Chartered has not seen any appreciable share price increase in the past year and Natwest is loss-making right now, so they were not similarly comparable. The Lloyds Bank share price has indeed risen faster than HSBC, which has grown 42%. But it is still far lower than Barclays’ 90% share price growth.  #2. Dividend yield What the Lloyds Bank share lacks for in terms of price increase, however, it can make up for in dividend yield.  Here too, the Lloyds Bank share sits somewhere in the middle. It has a dividend yield of 1.5%, compared to Barclays’ smaller yield of 0.5% and HSBC’s higher yield of 2.5%.  Considering both share price increase and dividend yield in mind, the Lloyds Bank share is not unattractive. But I would bear two more points in mind here: There are FTSE 100 growth stocks with higher dividend yields around (like, Rio Tinto). I would look at these too, rather than restrict myself to banks. Banks’ dividends are capped for now by guardrails set out by the Bank of England. This is a temporary measure, but it does mean that banks’ yields are likely to be less competitive than other stocks for the time being.  #3. Earnings per share To assess if it can pay a higher dividend, I look at the earnings per share (EPS) number as well. A higher EPS indicates that the bank can continue to pay dividends and possibly even increase them.  The Lloyds Bank share is in a weak place on this measure. Its EPS, at 1.2p, is way lower than that for both Barclays and HSBC at 8.6p and 19p respectively. While I would keep this in mind, given that 2020 was a bad year I would take it with a pinch of salt for now. The verdict for the Lloyds Bank share On the whole, based on these three metrics, the Lloyds Bank share does have merit. Right now, it is a growing stock that pays a dividend. Its dividend yield, however is low and going by its current EPS numbers, it does not look likely that this FTSE 100 stock will become a huge income generator anytime soon. At the same time, I think things can improve for the Lloyds Bank share as the economy reopens and rebounds, and banks’ business takes off. It is on my investing radar.  FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading The Lloyds share price is up 76% in six months. Am I too late to buy? UK shares to buy now: 3 I think can double my money in 3 years The Lloyds share price still looks cheap to me! I’d buy it today in an ISA The Lloyds share price is rising: should I buy now? Why I’d ignore the Lloyds share price and buy this cheap UK share right now Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK has recommended Barclays, HSBC Holdings, Lloyds Banking Group, and Standard Chartered. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Buying the Lloyds Bank share? Here are 3 metrics I’d consider first appeared first on The Motley Fool UK.
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  5. The Barclays share price is cheap. Should I buy now? (31/03/2021 - The Motley Fool UK)
    The Barclays (LSE: BARC) share price is recovering to where it was pre-pandemic. Over the last 12 months, the shares are up 90%. However, despite the rise, I think it’s still quite cheap. Especially versus other FTSE 100 banks. It could also be a great recovery stock. That’s why I’m asking: is it a buying opportunity and worth adding to my portfolio?  Attractions of the Barclays share price I’d say that looking at the P/E ratio as a measure of value, Barclays is cheaper than broadly comparable banks like Lloyds and HSBC, even though a recent share price rise has pushed the ratio up to around 20. For Lloyds the P/E is 35, for HSBC it’s 30.  When you also consider there’s a price/book ratio of 0.42, which is low to start with and also lower than the 10-year average, then the shares look very cheap to me. As such the bank’s shares have the kind of margin of safety that a value investor like Warren Buffett would lean towards. Beyond the cheapness of the shares, there’s the bigger picture. The UK economy is likely to recover, which will help the banks. Barclays’ earnings are likely to bounce back. On a similar note, that also means there should be a recovery in margins, which were squeezed in 2020 because of the virus. On top of the above, share buybacks may indicate management thinks the shares are undervalued. Management is using cash to do this instead of paying a higher dividend, indicating they think it’s a better use of funds. I also like the robust-looking balance sheet, with regulatory capital well above the minimum requirement. Lastly, on the positive front, Barclays intends to pay a progressive dividend, so we could expect a rising dividend. I think that’s good and indicates the shares could offer both income and growth to investors. The possible downsides It’s not all positive though. I think there are some factors that could hold the share price back, or pose potential risks. For one, the investment bank part of the business adds risk and ties up capital. There’s also the question of whether its good performance in the recent can be repeated going forward. Investment banking is inherently volatile, so it’s far from guaranteed. Also, investment banking in particular relies on highly skilled individuals, Barclays could lose key talent to other banks or financial institutions. That could hit the performance of its investment banking arm. On the retail banking side of things, bad debts could be worse than management expects or has warned investors to expect. That would likely see the share price fall as I think investors expect 2021 to be a year of recovery, especially for banks. Some would be tempted to argue that there’s an existential threat from fintech. I’m less convinced by this, but as technology develops, investors will need to keep an eye on how it alters the bank’s business model. Lastly, the prospect of negative interest rates, which would be bad for banks, may hold back the Barclays share price.  So is the Barclays share price cheap enough to buy? For me, yes. It’s a case of a decent company at a fair price, which could be a good basis for adding it to my portfolio in the coming months. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading Barclays’ share price is beating the market in 2021: what next? Barclays share price: is now the time to buy this FTSE 100 share? I’d avoid the Barclays share price and buy this FTSE 250 growth stock How I’d invest £1,000 in a Stocks and Shares ISA today Andy Ross owns no share mentioned. The Motley Fool UK has recommended Barclays, Lloyds Banking Group and HSBC Holdings. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Barclays share price is cheap. Should I buy now? appeared first on The Motley Fool UK.
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  6. The Barclays share price gains 25% in 2021, with Lloyds at 35%. Which is better now? (08/06/2021 - The Motley Fool UK)
    The Barclays (LSE: BARC) share price has stormed up 25% so far in 2021, way above the FTSE 100 average. But Barclays has still lagged Lloyds Banking Group (LSE: LLOY) mind, up 35% year-to-date. I’ve been bullish about the banking sector for some time, but what does this tell me? Should I add some Barclays shares to my portfolio, or top up on my Lloyds holding? Well, such a short-term price performance difference doesn’t say a lot on its own. But looking back a bit further, I’m seeing an interesting picture. Over the past 12 months, they’re both up 40% (from early in the crash). But the Barclays share price has gained 24% over two years, though only 10% over five years (with the longer timespan including the early aftermath of the Brexit vote). The Lloyd share price meanwhile, has lost 14% over two years and is down 26% over the half-decade. Barclays has clearly been the best investment over a five-year timescale. But why, and what does that say now? I think it’s telling me to examine the two banks’ responses to the financial crisis and the Brexit result. Lloyds has withdrawn from the risky world of international investment banking. That’s where the foundations of the world banking systems started to crack in the first decade of this century. And Lloyds has gone further, withdrawing entirely into the UK domestic banking business. A bolder strategy But that’s not what Barclays has done. It’s acted more boldly every step of the way. And, judging by the Barclays share price, investors see more potential in that approach. From right back in the depths of the banking crash, Barclays found its own ways to recapitalise and get its balance sheet back into some semblance of health. There’s been some investigative fallout in the way that happened, but it hasn’t harmed shareholders. Barclays also responded differently to the banking crunch. Rather than shunning the investment banking business, it climbed right back on the horse. I’d say there’s bigger risk there, but potentially greater opportunity. And it’s surely safer now that worldwide banking regulations have been tightened and balance sheets can no longer become so overstretched, isn’t it? Well, I wouldn’t put it past the banking industry to find new ways to create catastrophe. But there are at least some safeguards now. A more volatile Barclays share price? So, two different approaches, but which do I think is best? Barclays is being bolder, sticking with the potentially more profitable parts of the banking business. Lloyds, meanwhile, has gone all out for safety. I can certainly see merits in both strategies. Over the next five years, I could see the Barclays share price being more volatile. And I can picture the Lloyds share price being a bit more plodding, attracting dividend investors rather than those who seek growth and sector dominance. So, which is really better? It depends on an individual investor’s priorities. But, for me, now in my sixties and more focused on income and lower risk these days, I’m sticking with Lloyds. 5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic… And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains. But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times. Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down… You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm. That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now! More reading Lloyds share price: here’s my outlook for the rest of the year The Lloyds Bank share price has touched 50p. Here’s what I’d do now Where will the Lloyds share price go in June? The Lloyds share price is still rising: here’s why I’d buy now I was right about the Lloyds share price. Here’s my outlook now Alan Oscroft owns shares of Lloyds Banking Group. The Motley Fool UK has recommended Barclays and Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Barclays share price gains 25% in 2021, with Lloyds at 35%. Which is better now? appeared first on The Motley Fool UK.
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  7. IRCTC share price hits all-time high, surges three times from IPO price; stock may rally up to 40% (04/03/2021 - Financial Express)
    IRCTC share price hit a new record high of Rs 2,014 apiece, rising as much as 7 per cent in the intraday on BSE.
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  8. Can the Barclays (BARC) share price keep climbing? (12/04/2021 - The Motley Fool UK)
    The Barclays (LSE:BARC) share price has been on fire recently. Over the last 12 months, it has more than doubled, increasing from 87p to around 185p today. In fact, this recent rise has pushed the share price beyond pre-pandemic levels. But can it keep climbing? And should I be adding the stock to my portfolio? The rising BARC share price Barclays works similarly to most banks. It uses customer deposits to provide loans to individuals or businesses and then generates profit from charging interest on these loans. Unfortunately, due to the pandemic causing lockdowns and massive disruption worldwide, many of its borrowers have been unable to keep up their payments. This appears to be a catalyst behind the 50% collapse of the BARC share price in March last year — apart from the wider fall that affected many shares whether it was deserved or not. Looking at the recently published full-year 2020 results, the decline was somewhat justified. Overall profits fell by 38% to £1.53bn from £2.46bn a year before. And most of this is attributable to the aforementioned missing loan payments that resulted in a £4.8bn credit impairment charge. Needless to say, that’s not exactly positive news. So why has the BARC share price been rising? Upon closer inspection of the individual divisions of the business, there are some promising signs of growth. In particular, its Corporate Investment Banking segment, which generates around 46% of revenue, grew its profits by a record 29%. Furthermore, its Consumer, Cards & Payments division was unprofitable during 2020 due to reduced consumer spending. However, with lockdown restrictions slowly being eased and businesses reopening their doors, many of the disruptions to Barclay’s revenue stream appear to be vanishing, I feel. Risks to consider Most profits are generated by the aforementioned Investment Banking division. But this ultimately exposes the firm to a considerable level of market risk. Making smart investment decisions is a challenging task that requires talented individuals to execute. Suppose the company is unable to retain its skilled teams of investment managers, or a series of poor decisions are made. In that case, the division’s future performance could suffer considerably, impacting both overall profits and the BARC share price. Another risk to consider is interest rates. In 2020, the Bank of England cut rates to nearly 0% and added further pressure on profit margins for Barclays’ lending operations. This is something that’s ultimately out of the company’s control. And so far, there’s no clear indication of when interest rates will begin to rise again. The bottom line Personally, I’ve never been particularly fond of banking stocks, primarily due to the low-interest-rate environment they’ve had to operate in for the last decade. However, I do have to admit that even after the recent surge in the BARC share price, it still looks like it can climb higher. Its P/E ratio is currently around 21. By comparison, its main competitors like Lloyds and HSBC are trading at P/E ratios of 36 and 31, respectively. To me, this indicates the bank is currently undervalued. And therefore, Barclays is a value investment I would consider making for my portfolio. As a final note, I did also find another stock that looks far too cheap right now… FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading 2 ISA stocks I’d buy right now on deadline day! 2 FTSE 100 ‘recovery stocks’ to buy The Barclays share price is cheap. Should I buy now? Barclays’ share price is beating the market in 2021: what next? Barclays share price: is now the time to buy this FTSE 100 share? Zaven Boyrazian does not own shares in Barclays. The Motley Fool UK has recommended Barclays. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Can the Barclays (BARC) share price keep climbing? appeared first on The Motley Fool UK.
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  9. Here’s why I think the Barclays share price could climb in 2021/22 (19/04/2021 - The Motley Fool UK)
    Since Halloween, UK shares have enjoyed a healthy uplift. On 30 October, the FTSE 100 index was very depressed, closing at 5,577.30 points. On Friday, the index closed at 7,019.53. That’s an increase of roughly 1,440 points — more than a quarter (25.9%). This has been one of the best share surges in many a year. Furthermore, share prices of Barclays (LSE: BARC) and other UK banks have surged strongly, as investors rotate from momentum stocks into value shares. Even so, I’m hopeful that the Barclays share price has further to go. Here’s why. The share price doubled since September In September, the Barclays share price was looking sickly. It had been 91.01p a year ago but then started to climb to over 131p. However, it fell steeply from June and closed at 91.55p by 25 September. From July to October, I repeatedly argued that Barclays shares were very undervalued and a bargain in my book. On Friday, the shares closed at 189.76p. That’s more than double (+107.3%) their September low. However, even though the shares are worth twice what they were, I see two trends to boost them yet higher. US banks report huge profits For clues as to the immediate future of the Barclays share price, I’m looking westwards, because the US earnings season is already underway. Some of the S&P 500 index’s biggest companies reported bumper profits this week, as earnings rebound from 2020’s lows. Some of the biggest blowouts came from banks including JPMorgan Chase, Bank of America and Goldman Sachs. These Goliaths of US banking reported huge increases in earnings, largely due to two factors. First, banks are reversing the huge reserves set aside in 2020 for loan losses, adding billions of dollars to their bottom lines. Second, investment banks (especially Goldman) generated huge profits from their trading and advisory functions. Barclays’ earnings could bounce higher…or lower! What does this have to do with the Barclays share price? The 330-year-old lender is the only UK-focused bank to have a sizeable investment-banking division. In 2020, corporate and investment banking contributed £2.6bn to profits. Alas, Lloyds Banking Group and NatWest have closed their investment banks. HSBC Holdings is big in investment banking, but it’s a global giant with limited UK exposure. Thus, if the trends seen in US investment banking are repeated at Barclays, even modestly, then the bank’s earnings could leap. In addition, Barclays set aside £4.8bn in 2020 to meet expected loan losses. Thanks to gargantuan government support and central-bank largesse, British borrowers and businesses are in much better shape than was predicted a year ago. Hence, Barclays should be able to reclaim some of these reserves to drop straight into its bottom-line profit. If this happens, then it could stimulate the Barclays share price. Of course, I could be wrong. What if the widely expected multi-year global economic boom fails to materialise? Or this investment-banking boom is a short-term boost that fades away? What if loan losses rise when government support ends and unemployment soars as weak companies collapse? Or growth reverses after government stimulus ends? And what if new, more virulent variants of Covid-19 take hold? If bank earnings do decline in these scenarios, then the Barclays share price could suffer. But weighing up the risks, I’d still buy Barclays shares today to tuck away for the long term! FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Why I think the Barclays Bank share price could keep climbing Can the Barclays (BARC) share price keep climbing? 2 ISA stocks I’d buy right now on deadline day! 2 FTSE 100 ‘recovery stocks’ to buy The Barclays share price is cheap. Should I buy now? Cliffdarcy has no position in any of the shares mentioned. The Motley Fool UK has recommended Barclays and Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Here’s why I think the Barclays share price could climb in 2021/22 appeared first on The Motley Fool UK.
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  10. The Barclays share price dives 6% on results. Is BARC back in the bargain bin? (30/04/2021 - The Motley Fool UK)
    Bad news for shareholders of British bank Barclays (LSE: BARC). The ‘Big Five’ bank released its first-quarter results this morning. Alas, these figures failed to impress investors, as the Barclays share price fell at the market open. Barclays’ revenues drop, but profits soar On 19 April, I wrote that Barclays was perhaps on a knife-edge. Shareholders — and the Barclays share price — would welcome a boost to investment-banking profits. Also, any write-back of 2020’s loan-loss reserves would strengthen the bank’s bottom line. However, I worried that Barclays faces a lot of uncertain risks that could impact on its performance. But I decided that the shares were worth buying for the long term. Sadly, Barclays’ latest results revealed that it didn’t share the bumper boost to profits enjoyed by big US banks. Revenue at Barclays slipped 6% to £5.9bn, but at least that was above the consensus forecast of £5.6bn. One reason for this was a lower net interest margin (NIM, which is the spread between lending and savings rates). Barclays’ NIM fell to 2.54% in Q1 2021, versus 2.91% a year ago. This dragged down net interest income, as did weaker lending at the group’s UK arm. Clearly, these two setbacks are not good news for the Barclays share price. Then again, there were things to celebrate from Barclays. Profit before tax almost tripled (+162.8%), surging to £2.4bn from £913m a year earlier. Basic earnings per share (EPS) also skyrocketed (+182.9%), leaping to 9.9p from 3.5p in Q1 2020. But one disappointment for shareholders was a further £55m in credit-impairment charges. Some investors had hoped Barclays would follow other UK banks in releasing bad-debt reserves from 2020. But the £4.8bn it set aside in 2020 remained untouched, which acted as a drag on the Barclays share price. The Barclays share price tumbles As I write on Friday morning, the Barclays share price is 178.34p, down 10.38p (5.5%) on Thursday’s close. That’s quite a slap from Mr Market. But Barclays shares have been a big winner over the past three, six and 12 months, as this table shows: 1 week 3.5% 1 month 0.2% 3 months 38.2% 6 months 80.3% 1 year 71.3% 2 years 14.6% 3 years 9.7% 5 years 8.2% However, for the Barclays share price to continue this winning streak, the bank needs demand for credit to rise. When lockdown restrictions are finally withdrawn, will consumers return to spending on credit cards and taking out personal loans? If so, this would greatly benefit Barclaycard, the UK’s biggest credit card with around 10m cardholders. Then again, the short-term boost to trading and advisory profits is unlikely to last, which could depress future earnings from Barclays’ investment bank. Would I buy Barclays today? It’s clear that Barclays faces headwinds from lower interest rates, falling margins and subdued borrowing. However, I see a potentially robust £32bn business just waiting to rebound when the economy eventually takes off. What’s more, Barclays has a strong balance sheet, with a Common Equity Tier 1 (CET1) ratio of 14.6%, up from 13.1% a year ago. Also, tangible net asset value (TNAV) is 267p a share, which is almost half (+49.7%) above the current Barclays share price. Yes, the full-year dividend of 3p equates to a dividend yield of just 1.7%, but it shouldn’t be so low for  very long. On balance, I’d be happy to buy Barclays shares at today’s reduced price. CEO’s £500,000,000 Stake on Industry’s “Uber” Revolution We think that when a company’s CEO owns 12.1% of its stock, that’s usually a very good sign. But with this opportunity it could get even better. Still only 55 years old, he sees the chance for a new “Uber-style” technology. And this is not a tiny tech startup full of empty promises. This extraordinary company is already one of the largest in its industry. Last year, revenues hit a whopping £1.132 billion. The board recently announced a 10% dividend hike. And it has been a superb Motley Fool income pick for 9 years running! But even so, we believe there could still be huge upside ahead. Clearly, this company’s founder and CEO agrees. Learn how you can grab this ‘Top Income Stock’ Report now More reading Why has the Barclays share price crashed? And what I’d do now These UK share prices are soaring! Should I buy these stocks in my ISA in May? The Barclays share price is up nearly 30% in 2021. Is it the bank to buy? Why the Barclays share is my FTSE 100 banking pick  Barclays share price versus Lloyds share price: which would I buy today? Cliffdarcy has no position in any of the shares mentioned. The Motley Fool UK has recommended Barclays. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Barclays share price dives 6% on results. Is BARC back in the bargain bin? appeared first on The Motley Fool UK.
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  11. At over 150p, here’s what I’m doing about Barclays shares (16/02/2021 - The Motley Fool UK)
    The Barclays (LSE: BARC) share price has recovered fairly well from its lows last year. Indeed, a rise of 100% represents a very strong performance for a company in a struggling sector right now. But it must be pointed out that at yesterday’s close of almost 154p, it’s still less than the 177p it was at a year ago. The bank has performed resiliently though, in part due to strong performance from its investment bank. This has allowed it to outperform many of its rivals, including Lloyds and HSBC. But after its rise, do I think that the Barclays share price is still cheap, or are the risks too great for me to buy more of its shares now? Financial results Considering the circumstances, Barclays has managed to deliver strong profits throughout the pandemic. For instance, first-to-third-quarter profits before tax totalled £2.4bn, in comparison to £3.3bn the year before. Although profits have fallen from the previous year, this was to be expected. It’s evident that the Corporate and Investment Bank has been the driving force. The company saw £9.8bn in revenues within this area (a 24% increase from the previous year). Results from Barclays UK were weaker and its profits before tax were only £300m, as opposed to £1.9bn the year before. With Barclays having strongly relied on the investment bank for profits — rather than seeing a more balanced performance across the firm — there’s always the chance that this one division may underperform in the future. Full-year results are fast approaching and the investment bank may not be able to continue such a strong run. As a current shareholder, this is something I have to prepare myself for. What are the other risks? Although the Bank of England has provided positive updates on how it expects the economy to rebound, it has also raised the possibility of negative interest rates being implemented. This may help boost spending, but it could also deter people from putting money into banks and so dent the profits to be made from lending. It’s therefore a risk to be considered when evaluating the Barclays share price. In addition to this, there’s also the poor wider economic conditions to consider. Recent figures suggest unemployment in the UK of around 5%, with many different companies struggling to stay afloat. This is likely to increase the number of defaults and could also strain Barclays ‘profits. What am I doing with Barclays shares? As a current investor, I have no intention of selling. Firstly, Barclays has a price-to-earnings ratio of around 12, and this indicates that the stock may still be slightly undervalued. In addition,  its global presence should help it avoid some of the negative effects associated with Brexit and allow it to benefit from US financial stimulus. The future also looks fairly bright for the business, I feel. Its balance sheet seems robust, and dividends are set to return in the near future. Although some of this optimism is reflected in the current Barclays share price, I’m still a big fan of the company. Of course, future performance is dependent on a number of factors outside of the firm’s control. But as a current investor, I’m going to hold for the long term. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Is the Barclays share price too cheap after recent falls? ISA investing: why I think the cheap Barclays share price could be an investment trap! Lloyds vs Barclays vs NatWest: which FTSE 100 share would I buy for 2021’s recovery? Stuart Blair owns shares in Barclays. The Motley Fool UK has recommended Barclays, HSBC Holdings, and Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post At over 150p, here’s what I’m doing about Barclays shares appeared first on The Motley Fool UK.
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  12. Why the Barclays share is my FTSE 100 banking pick  (21/04/2021 - The Motley Fool UK)
    The past year had its share of ups and downs, especially for banks. But some FTSE 100 banks have recovered faster than others. Barclays (LSE: BARC) is one of the better recoverers. The Barclays share price is well past the pre-market crash levels, and is now at levels last seen in 2019. By comparison, it’s FTSE 100 peer Lloyds Bank is struggling to get back to early 2020 levels. So are other banks, like Natwest and Standard Chartered, for that matter. Why it is ahead And this is despite the fact that Lloyds offers a higher dividend yield than Barclays. One reason why this has not made a difference to investors is that despite the difference in yields, the numbers are still quite low for Lloyds Bank at 1.5%. But there are other reasons too. Unlike Lloyds Bank, Barclays is diversified. It is not heavily dependent on either the retail banking consumer or the UK market.  Consider this. In 2020, its total income grew by a minuscule 1%. This was because of a fall in interest income, while it fee-based income actually rose a fair bit. Its income from corporate and investment banking grew by a very healthy 22%. To put it another way, its income was relatively cushioned from the hit to income from loans.  Also, only half of its revenues come from the UK, with 34% actually coming from the Americas. This means that even if the UK economy is more affected by coronavirus than others, which has in fact been the case, Barclays’ business is insulated to a great extent.  Competitiveness and macros support the bank So far, so good. The next question is – can the Barclays share sustain its upswing?  I think it can. If I look at its price-to-earnings (P/E) ratio of 21 times, it compares favourably to other FTSE 100 stocks and even other banks. Lloyds Bank, for instance, has a P/E of more than 35 times at present.  As the stock market rally continues, I reckon investors will circle back to stocks that look comparatively cheap. Barclays can feature on that list.  From a macroeconomic perspective, I think the bank is in for better times as well. If the economy picks up pace, as is widely expected, banks’ fortunes would take a turn for the better. Higher interest rates are already speculated as inflation starts inching up. Loans are also likely to be higher in better times and bad debts could be smaller.   Low dividends hold back Barclays share price I think that its share price could be held back by caps to dividends, though. Even though the Bank of England’s Prudential Regulation Authority has allowed financial institutions to pay dividends, they are restricted based on banks’ financial strength and performance. Barclays’ current dividend yield is at 0.5%, which is no way comparable to say, tobacco biggie Imperial Brands’ big dividend, which holds it in good stead despite its falling share price.   These caps are expected to be temporary, however, so the Barclays bank upswing could continue well into this year, making it my banking pick.  There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading Barclays share price versus Lloyds share price: which would I buy today? Here’s why I think the Barclays share price could climb in 2021/22 Why I think the Barclays Bank share price could keep climbing Can the Barclays (BARC) share price keep climbing? 2 ISA stocks I’d buy right now on deadline day! Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK has recommended Barclays, Imperial Brands, Lloyds Banking Group, and Standard Chartered. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Why the Barclays share is my FTSE 100 banking pick  appeared first on The Motley Fool UK.
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  13. Why has the Barclays share price crashed? And what I’d do now (30/04/2021 - The Motley Fool UK)
    As stock markets opened this morning, the Barclays (LSE: BARC) share price crashed by 6%. Right now, it is the biggest FTSE 100 faller. This looks completely at odds with its strong results posted just early today. But it is not and I can see three reasons for this.  #1. Earnings boost was priced in The Barclays share price has been on the rise this week as other banks’ results trickled in. Strong performances by HSBC, Lloyds Bank, Standard Chartered and NatWest had most likely raised expectations for Barclays too. All banks posted expectations-beating earnings numbers as bad loan provisions were reduced. In the first quarter of 2020, big provisions were made as the pandemic took over and the economy’s future became a big unknown. In terms of financials, this showed up as a sharp reduction in net profit or even losses in some cases. However, with vaccine development, massive public spending and the quick bounce-back in economic growth as lockdowns are eased, banks have turned hopeful for the rest of 2021. This means that credit impairment charges or bad loan provisions are no longer the big drag on banks’ profits that they were in Q1 2020. I reckon that with this as the defining trend for banks’ Q1 2021 earnings, a sharp jump in Barclays’ numbers was already priced in. #2. Barclays’ lending growth weak Barclays’ profit after tax was up by 126% to £1.9bn in Q1 2021 year-on-year. Its credit impairment charges were down to 2.5% of their levels this time last year. And its earnings per share more than doubled. But its UK lending numbers painted a mixed picture. There was almost no sequential improvement (up 0.1% from Q4 2020) in lending, though there was a 5% increase from Q1 2020. Its loan-to-deposit ratio was also a lower 88% compared to 96% for Lloyds Bank. I think these are important numbers. The UK is a far smaller market for Barclays than it is for Lloyds Bank, but it does make up for half the bank’s revenues. #3. Conservative outlook Barclays does not expect improvement in its UK market in 2021 either. In its outlook, the bank said: “Headwinds to income in Barclays UK are expected to persist in 2021, driven by the subdued demand for unsecured lending.”  It is more positive on its corporate and investment banking business, however.  Takeaway for the Barclays share price I think diversification across business lines has been a positive for Barclays for now. For the rest of 2021, it expects a pick-up in the US cards business, which is also a gain from its cross-geography presence.  These can add to the improvement in financial health seen in this quarter, even if it is not quite ahead in the UK lending market right now. I also like that it is still competitively priced compared to other banks. And this is despite the fact that its share price is back to the highs of 2019. I think the share price fall is a reason for me to buy it.  A Top Share with Enormous Growth Potential Savvy investors like you won’t want to miss out on this timely opportunity… Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!). Not only does this company enjoy a dominant market-leading position… But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks! And here’s the really exciting part… While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes. That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021. Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge! More reading These UK share prices are soaring! Should I buy these stocks in my ISA in May? The Barclays share price is up nearly 30% in 2021. Is it the bank to buy? Why the Barclays share is my FTSE 100 banking pick  Barclays share price versus Lloyds share price: which would I buy today? Here’s why I think the Barclays share price could climb in 2021/22 Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK has recommended Barclays, HSBC Holdings, Lloyds Banking Group, and Standard Chartered. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Why has the Barclays share price crashed? And what I’d do now appeared first on The Motley Fool UK.
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  14. Should I buy Lloyds shares today? (14/06/2021 - The Motley Fool UK)
    Lloyds (LSE: LLOY) shares have had a great run recently. Year to date, the Lloyds share price is up 33%. Over 12 months, the stock is up 51%. I already own some Lloyds shares so I’m pleased that the share price is rising. Should I buy more though? Let’s examine the outlook for Lloyds shares from here. Lloyds share price: I see further upside The short-term set-up for Lloyds shares is quite attractive, in my view. For starters, the UK economy looks set for strong growth this year. Last month, the Bank of England raised its forecast for British economic growth to 7.25% for 2021, up from February’s estimate of 5%. This growth should provide a nice backdrop for Lloyds – its fortunes are closely linked to the health of the UK economy. Secondly, analysts are upgrading their earnings forecasts for the stock. Over the last three months, the consensus earnings per share estimate for 2021 has risen from around 4.1p to 5.9p. Analysts are also raising their price targets for Lloyds. Last week, both Barclays and JP Morgan lifted their targets. Barclays went from 55p to 60p while JP Morgan went from 54p to 59p. This kind of upgrade activity can boost a stock’s share price. Third, the stock’s valuation is still very low. The current FY21 earnings forecast of 5.9p equates to a forward-looking price-to-earnings (P/E) ratio of just 8.2 at the current share price. By contrast, the median forward-looking P/E across the FTSE 100 is 16.7. Finally, Lloyds has said that it intends to resume a “progressive and sustainable ordinary dividend policy” in the near future. Regular dividends could increase the appeal of owning the shares, and push its share price up further. Putting this together, I see plenty of appeal in Lloyds shares right now. Long-term uncertainty I do still have concerns about the long-term investment case for Lloyds shares, however. My biggest concern is that I think the banking industry is going to see a significant amount of disruption over the next decade due to advances in financial technology (FinTech). Today, FinTech companies such as PayPal, Square, Wise, Revolut, and SoFi are rapidly capturing market share. I suspect that in 10 years’ time, the banking industry will look very different. This adds uncertainty to the investment case. My second concern is that UK interest rates could remain low for years. This could hinder Lloyds’ profitability and put a brake on the rising share price due to the fact that banks are able to generate larger profits when interest rates are higher. We may see UK interest rates rise as the economy continues to recover in the years ahead. However, I think it will be a long time before rates are back at pre-Global Financial Crisis levels of 5%+. Should I buy Lloyds shares now? Weighing everything up, I’m not going to buy more Lloyds shares for my portfolio for now. I will continue to hold the shares I have because I think the price has further to climb. However, I will be investing new capital in other stocks that have more growth potential in the long run. The post Should I buy Lloyds shares today? appeared first on The Motley Fool UK. Like this one… FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Should I buy Lloyds shares? The Lloyds share price is up 50%. I’d still buy. The Barclays share price gains 25% in 2021, with Lloyds at 35%. Which is better now? Lloyds share price: here’s my outlook for the rest of the year The Lloyds Bank share price has touched 50p. Here’s what I’d do now Edward Sheldon owns shares in Lloyds Banking Group and PayPal. The Motley Fool UK owns shares of and has recommended PayPal Holdings and Square. The Motley Fool UK has recommended Barclays and Lloyds Banking Group and recommends the following options: long January 2022 $75 calls on PayPal Holdings. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  15. Nureca share price hits upper circuit for 4th straight day; investors money more than doubled so far in April (22/04/2021 - Financial Express)
    Nureca share price hit the upper circuit for the fourth consecutive day on Thursday, rising 5 per cent to Rs 1,218.60 apiece
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  16. I’d avoid the Barclays share price and buy this FTSE 250 growth stock (12/03/2021 - The Motley Fool UK)
    At first glance, I think the Barclays (LSE: BARC) share price looks cheap. It’s currently trading at a discount of more than 50% to its book value. This implies the business could be worth more if it was broken up and sold piece by piece. Of course, this is unlikely to happen, at least in the near term. As such, using book value to work out how much the bank could be worth is a bit misleading.  The business behind the Barclays share price  A better way to understand how much the business could be worth is to look at its profitability. Here, Barclays is struggling. The group has two main income streams, lending to customers and its investment bank. To a certain extent, the profitability of the lending business is determined by central bank policymakers, who set the country’s interest rates. Higher rates could mean larger profit margins for the lender. Low rates usually translate into lower margins.  Unfortunately, that’s just what’s happened over the past decade. Interest rates are currently at record low levels, and it doesn’t look as if they’re going up any time soon. I think this will impact Barclays’ profitability for years to come. While the group’s investment banking business has picked up some of the slack, this might not last.  Of course, this is only my assessment of the situation. There’s a chance interest rates could jump in the next few years. That would help widen the bank’s profit margins, leading to improved investor sentiment towards the Barclays share price. The group may also see a better-than-expected period of profits from its investment bank. This may also help improve investor sentiment. However, there’s a lot of uncertainty here. That’s why I’m going to avoid Barclays for the time being.  FTSE 250 growth stock Instead of throwing my weight behind the Barclays share price, I’d buy FTSE 250 growth stock IG Group (LSE: IGG) instead.  I think this company has two key advantages over Barclays. For a start, its main business is providing stock trading services for customers. While this is a highly competitive business, the critical difference between IG and Barclays is the former can set its own costs and charges. It’s not reliant on central banks to set interest rates. In my opinion, this means the group has more control over its future. Thanks to these advantages, the FTSE 250 growth stock already trades at a higher valuation than the Barclays share price. It’s trading at three times book value. As I mentioned above, this figure can be a bit misleading when used for valuations, but as a rough guide to gauge investor sentiment, the difference is revealing.  That’s not to say IG doesn’t face any risks of its own. It does. A few years ago, group profits plunged when regulators introduced new rules to cap the selling of leveraged derivates to clients. Additional regulatory constraints could emerge at any point. A sudden bout of market volatility, leading to large client losses, may also weigh heavily on the FTSE 250 organisation. Despite these risks, I think IG is a better investment than the Barclays share price. That’s why I’d buy the FTSE 250 growth business for my portfolio today.  There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading How I’d invest £1,000 in a Stocks and Shares ISA today My best Stocks and Shares ISA investments for 2021 and beyond Top British stocks for March 2021 FTSE 100 banking stocks are reinstating dividends. Are they a wise investment? Stock market recovery: 3 UK shares to buy today Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Barclays. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post I’d avoid the Barclays share price and buy this FTSE 250 growth stock appeared first on The Motley Fool UK.
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  17. Funding Circle’s share price is soaring, but I’d buy Barclays now (19/05/2021 - The Motley Fool UK)
    Shares in fintech group Funding Circle Holdings (LSE: FCH) are up by 15% as I write, after the SME business lender said its results for the first half of 2021 are expected to be “well ahead” of previous forecasts. The Funding Circle share price has now doubled over the last year. I’ve been taking a fresh look at this lender, which acts as an alternative to mainstream banks. Should I think about buying Funding Circle shares, or would I do better off by buying a more traditional banking stock such as Barclays (LSE: BARC)? Let’s take a look. A Covid-19 winner? Funding Circle’s software enables businesses to apply for loans and receive a decision within seconds. The company says that its machine learning technology uses a “data lake” containing more than 2bn data points to help it make accurate lending decisions. New lending has increased during the Covid-19 pandemic, as the company put its regular lending on hold and focused solely on UK government-backed CBILS loans. In total, Funding Circle issued £1.7bn of these loans last year — that’s more than 80% of its total UK lending in 2020. CEO and founder Samir Desai admits that as Funding Circle returns to normal commercial lending this year, he expects to see “some initial reduction in lending”. Even so, Funding Circle expects to report an underlying profit for the full year. Funding Circle share price: what I’m doing I think that when support schemes such as furlough finally end, we could see an increase in business failures in the UK. This could probably lead to an increase in loan losses, including CBILS loans. Funding Circle’s heavy dependence on CBILS loans worries me. Although these loans have a government guarantee, this only covers 80% of the loan. The remaining 20% is at the lender’s risk. Interestingly enough, Funding Circle’s management increased their estimated average loss rate on loans to 20.5% last year, from 12.9% at the end of 2019. If the company starts to report rising default rates this year, I think Funding Circle’s share price could start falling. Even without this, I reckon Funding Circle stock is starting to look expensive. The lender’s shares trade at more than two times their book value, even though this business has never reported a profit. Looked at another way, Funding Circle shares are trading on 50 times 2022 forecast earnings. On balance, Funding Circle is just too expensive for me. Why I’d buy Barclays shares now FTSE 100 bank Barclays isn’t likely to double in size anytime soon. But this business is already profitable and trades at an attractive 30% discount to its tangible book value. That gives Barclays shares a forecast valuation of just eight times 2021 earnings, with a dividend yield of 3.3%. The bullish argument in favour of Funding Circle shares is that if things go well, this smaller business could grow much more quickly than Barclays ever could. That’s probably true, but I think the risk of serious problems is also much higher at Funding Circle. I admit that Barclays’ growth has been sluggish in recent years. But this big bank has plenty of surplus capital, a diverse business model, and a cautious valuation. For me, Barclays is a sensible investment that should deliver positive returns. In contrast, I think Funding Circle looks like a much riskier bet, especially after recent share price gains. A Top Share with Enormous Growth Potential Savvy investors like you won’t want to miss out on this timely opportunity… Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!). Not only does this company enjoy a dominant market-leading position… But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks! And here’s the really exciting part… While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes. That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021. Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge! More reading The best shares to buy now: 3 FTSE 100 bargains The Barclays share price dives 6% on results. Is BARC back in the bargain bin? Why has the Barclays share price crashed? And what I’d do now These UK share prices are soaring! Should I buy these stocks in my ISA in May? The Barclays share price is up nearly 30% in 2021. Is it the bank to buy? Roland Head has no position in any of the shares mentioned. The Motley Fool UK has recommended Barclays. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Funding Circle’s share price is soaring, but I’d buy Barclays now appeared first on The Motley Fool UK.
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  18. Barclays share price: is now the time to buy this FTSE 100 share? (25/03/2021 - The Motley Fool UK)
    The Barclays (LSE: BARC) share price has roared back to life since the 2020 stock market crash. In fact, the FTSE 100 share has now erased all of the losses it endured following the Covid-19 outbreak. It recently struck its most expensive since December 2019, above 180p per share, in fact. Investor appetite for the bank first spiked when news of successful coronavirus vaccine testing broke last autumn. The triumphant rollout of these pandemic battlers in Britain have allowed the Barclays share price to keep soaring too. Yet despite its stratospheric rise I think the Barclays share price still looks really cheap on paper. City analysts think the bank’s annual earnings will soar 85% in 2021. This leaves the FTSE 100 bank trading on a price-to-earnings growth (PEG) ratio of 0.2. Investing theory suggests any reading below 1 indicates a UK share might be undervalued. Betting on the Barclays share price There are several reasons why the Barclays share price could continue to ascend too. These include: #1: Reassuring UK economic data. Banks are, of course, ultra-cyclical shares and so their fortunes are tied directly to broader economic conditions. It’s no surprise then that the Barclays share price rise has come at the same time as some key metrics, like PMI and unemployment data, in its core UK market have impressed. The good news could keep coming too as vaccine rollouts continue with great haste. #2: Solid trading at the investment bank. Income at Barclays’ Corporate and Investment Bank rocketed 22% in 2020, thanks to extreme market volatility. It’s quite possible that trading here will remain buoyant for some time yet. Certainly as the Covid-19 crisis worsens in some parts of the world and other issues such as rising inflation and trade tensions rattle investor nerves. 3: Strong US economic growth. Unlike its FTSE 100 peers Lloyds and NatWest, Barclays has significant international exposure which could prove a key plank for long-term earnings growth. The bank has a hefty footprint in the world’s largest economy, the US. And it looks like GDP growth here will outstrip those of other advanced economies in 2021, helped by the recent $1.9trn stimulus plan. However… That said, there’s a couple of key reasons why I think the Barclays share price could crash again. Again, the fortunes of the banks are highly geared to the performance of the broader economy. And the outlook in the UK is packed with peril. As the experts at Hargreaves Lansdown note: “Provisions for bad debt increased dramatically earlier in the year… and we’ll only know for sure if they are sufficient when government support is withdrawn at the end of the crisis.” Revenues could also struggle if the economic bounce proves fleeting and the Covid-19 situation worsens. The probability of low interest rates persisting long into the future threatens the Barclays share price too. Rock-bottom rates have smashed the difference which the FTSE 100 banks lend at, and provide to savers, over the past decade. And the Bank of England continues to publicly flirt with sending rates negative too, a scenario that would have additional ramifications on bank profits. All things considered I’d much rather buy other cheap UK shares today. A Top Share with Enormous Growth Potential Savvy investors like you won’t want to miss out on this timely opportunity… Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!). Not only does this company enjoy a dominant market-leading position… But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks! And here’s the really exciting part… While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes. That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021. Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge! More reading I’d avoid the Barclays share price and buy this FTSE 250 growth stock How I’d invest £1,000 in a Stocks and Shares ISA today Top British stocks for March 2021 FTSE 100 banking stocks are reinstating dividends. Are they a wise investment? Stock market recovery: 3 UK shares to buy today Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, and Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Barclays share price: is now the time to buy this FTSE 100 share? appeared first on The Motley Fool UK.
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  19. BPCL share price hits fresh 52-week high on net profit in Q4; firm declares final dividend (27/05/2021 - Financial Express)
    Bharat Petroleum Corporation Ltd (BPCL) share price surged to a fresh 52-week high of Rs 488 apiece on BSE, rising 3.5 per cent intraday.
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  20. Why I think the Barclays Bank share price could keep climbing (14/04/2021 - The Motley Fool UK)
    The Barclays Bank (LSE: BARC) share price has been climbing since the beginning of the year. The stock is up around 30% since 2021 opened. Over the past 12 months, its performance is even more impressive. Shares in the lender have increased in value by nearly 100%, excluding dividends. I think this trend is set to continue as the UK economy presses ahead with its reopening plans and businesses start to recover from the pandemic.  Barclays Bank share price outlook Barclays is much more than a bank. As well as the traditional banking business lines of taking deposits and making loans, the group also owns the giant Barclaycard credit card concern. Alongside this business sits a massive investment bank.  The group has faced pressure in the past to spin off this investment bank. However, it proved invaluable throughout the coronavirus crisis. As its traditional banking business suffered, Barclays’ traders reaped enormous profits from companies looking to raise more money on the stock market, or from bond investors via the investment bank. These profits offset losses in other parts of the group.  As such, while the lender did book losses on its loan portfolio due to the pandemic, it has so far managed to navigate the crisis reasonably well.  I think this suggests its recovery could be strong as well. An increase in consumer spending could translate into higher revenues from its Barclaycard business. At the same time, increased business confidence may improve demand for loans from its traditional banking division. The UK’s booming housing market may also lead to an increase in demand for mortgages.  All of the above points me to the conclusion that the Barclays share price could accelerate higher in the near term. Increased lending may lead to increased revenues, producing higher profits. And higher profits would justify a higher stock price. Risks and challenges That’s not to say the group doesn’t face risks and challenges. Another wave of coronavirus could delay the UK reopening schedule. After a year of disruption, many businesses may struggle to survive another wave. This could lead to a spike in bankruptcies. Consumer confidence may also suffer. This would hit the recovery at Barclaycard. In this scenario, the company’s profits may fall significantly. This would justify a lower Barclays share price.  Still, I’d buy the bank for my portfolio today as a recovery play despite these risks. Yes, another wave of coronavirus could destabilise its recovery, but that’s a risk all companies face right now. In my opinion, the group has been able to manage the crisis well up to this point. I think this implies it may do well the next time around. If there is a next time. Of course, this is just my projection. There’s no guarantee Barclays will prosper in another lockdown.  However, other businesses, like the one outlined in the free report below may prosper in a post-covid world. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading Can the Barclays (BARC) share price keep climbing? 2 ISA stocks I’d buy right now on deadline day! 2 FTSE 100 ‘recovery stocks’ to buy The Barclays share price is cheap. Should I buy now? Barclays’ share price is beating the market in 2021: what next? Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Barclays. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Why I think the Barclays Bank share price could keep climbing appeared first on The Motley Fool UK.
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  21. These UK share prices are soaring! Should I buy these stocks in my ISA in May? (30/04/2021 - The Motley Fool UK)
    I’m searching for some of the best British stocks to buy for my ISA today. Here are three UK shares whose soaring prices have caught my attention. A high-risk FTSE 100 share It’s perhaps no surprise to see the Barclays (LSE: BARC) share price go gangbusters in recent months. The bank is up 70% over the past year as impressive coronavirus vaccine rollouts in the company’s key British and US marketplaces have fuelled hopes of a strong economic recovery. It’s quite possible that cyclical UK share Barclays will enjoy a strong earnings rebound in 2021 (City analysts think annual earnings will double). However, I’ve serious reservations over the FTSE 100 bank for the longer term. Low, profits-crushing interest rates appear to be here to stay following the global economic meltdown of 2020. And the business faces increasing competitive pressures as the number of challenger banks grows. Price comparison website Finder says 14m adults now own an account with a digital-only bank. And it predicts the number could rise to 23m by 2026. A better UK stock to buy? I’d be much happier to add B&M European Value Retail (LSE: BME) shares to my Stocks and Shares ISA. The budget retailer has risen around two-thirds in value over the past 12 months. And there’s many reasons why I think it’ll outperform the Barclays share price over the long term. The growing market shares of grocers Aldi and Lidl show value remains an important factor for consumers. It’s one that’ll be particularly critical following the blow Covid-19 has inflicted on consumer confidence and spending power too. What’s more, B&M is expanding rapidly to make the most of this opportunity (it opened a net 16 new stores in the final three months of 2020). Be aware, however. The British Retail Consortium has recently warned that cost pressures are likely to rise across the sector. This is due to Brexit red tape, higher shipping costs, and rising commodity prices. It’s something that could take a large chunk out of B&M’s profit margins. A reassuring read-across I also think the Next Fifteen Communications (LSE: NFC) share price could also add to recent strength. This UK media share has gained a whopping 130% in value over the past year. And fresh trading details from rival ad agency WPP this week led me to believe Next Fifteen could continue to soar. On Wednesday, the FTSE 100 firm said that it has enjoyed “a strong start to the year with a return to growth in all business lines and most major markets.” It follows Next Fifteen’s full-year results announcement this month in which it said it’s currently trading ahead of expectations. I like the look of both these UK shares from a long-term perspective. But remember that they face significant threats as companies decide to bring their advertising and marketing activities increasingly in-house. CEO’s £500,000,000 Stake on Industry’s “Uber” Revolution We think that when a company’s CEO owns 12.1% of its stock, that’s usually a very good sign. But with this opportunity it could get even better. Still only 55 years old, he sees the chance for a new “Uber-style” technology. And this is not a tiny tech startup full of empty promises. This extraordinary company is already one of the largest in its industry. Last year, revenues hit a whopping £1.132 billion. The board recently announced a 10% dividend hike. And it has been a superb Motley Fool income pick for 9 years running! But even so, we believe there could still be huge upside ahead. Clearly, this company’s founder and CEO agrees. Learn how you can grab this ‘Top Income Stock’ Report now More reading The Barclays share price is up nearly 30% in 2021. Is it the bank to buy? Why the Barclays share is my FTSE 100 banking pick  Barclays share price versus Lloyds share price: which would I buy today? 3 high-growth stocks that could soar Here’s why I think the Barclays share price could climb in 2021/22 Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended B&M European Value, Barclays, and Next Fifteen Communications. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post These UK share prices are soaring! Should I buy these stocks in my ISA in May? appeared first on The Motley Fool UK.
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  22. Barclays’ share price is beating the market in 2021: what next? (27/03/2021 - The Motley Fool UK)
    Since the 2008 financial crisis, the big UK banks have mostly lagged behind the wider stock market. But I think things could be changing. The Barclays (LSE: BARC) share price has beaten the FTSE 100 and all of its main UK rivals so far in 2021. Is this 285-year-old business finally back on track to deliver sustainable growth? Or is this yet another false dawn? I think it’s too soon to be sure, but I do know that Barclays has outperformed decisively over the last 12 months:   1yr change (26/03/21) Barclays +70% NatWest Group +45% FTSE 100 +16% Lloyds Banking Group +12% What’s behind this rapid share price surge? I’ve been taking a look to find out more. What’s good Since taking charge of Barclays in 2015, CEO Jes Staley has resisted investors pressure to scale back the group’s investment bank. Mr Staley has stuck to his vision of pairing Barclays’ UK-US investment bank with its high street operations. The wisdom of this strategy was uncertain until last year, when Mr Staley’s bet paid off. Crashing UK markets triggered hard times in the real economy, as many businesses faced a sudden slowdown. Many of Barclays’ corporate clients needed extra cash to survive lockdown. The group’s investment bankers were happy to help by raising funds on the debt and equity markets. A busy year saw income from corporate and investment banking rise by 22% to £12.5bn. According to management, it was the best year ever. I think this strength is the main reason why the Barclays share price has outperformed its big rivals. This extra income helped to limit the damage from lower income at the group’s high street bank and credit card business. Banks such as Lloyds and NatWest don’t have the same investment banking capabilities, so suffered bigger hits to profits last year. What’s not so good I’m confident that business in Barclays’ credit card and high street businesses will return to normal over time. But I’m not so sure what to expect from its investment banking division. When a company reports record results, I think it pays to think about the situation. Is this a genuine growth scenario where I can expect further progress over future years? Or is this a situation where unusual circumstances have boosted profits? I can’t be sure how Barclays will perform over the next year or two. But I don’t expect another record-breaking performance from investment banking this year. I think what’s more likely is that we’ll see a more middling performance — similar to recent years, in fact. The Barclays share price: what I’d do The latest broker consensus forecasts suggest that Barclays’ earnings and its dividend will rise in 2021. Estimates for this year put the stock on 11 times forecast earnings, with a 2.9% dividend yield. However, although profits are expected to rise this year, forecasts suggest they will still be lower than in 2019. Earnings aren’t expected to rise above 2019 levels until 2022. In my view, Barclays and Mr Staley still have a lot to prove. But the shares look affordable to me at current levels. Over time, I expect further gains. I’d certainly be comfortable buying and holding Barclays shares today. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading Barclays share price: is now the time to buy this FTSE 100 share? I’d avoid the Barclays share price and buy this FTSE 250 growth stock How I’d invest £1,000 in a Stocks and Shares ISA today Roland Head has no position in any of the shares mentioned. The Motley Fool UK has recommended Barclays and Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Barclays’ share price is beating the market in 2021: what next? appeared first on The Motley Fool UK.
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  23. The Lloyds share price is still rising: here’s why I’d buy now (30/05/2021 - The Motley Fool UK)
    When I last looked at Lloyds Banking Group (LSE: LLOY) in April, the Lloyds share price was about 44p. As I write today, it’s 11% higher, at 49p. Despite this continued growth, my view remains the same — I reckon this FTSE 100 stock could return to the 60p level seen at the start of last year. I like Lloyds’ traditional banking model and its big market share. Although banks have had a difficult time over the last decade, I think most of these problems are now in the past. In my view, Lloyds’ shares could be a decent investment today. Why Lloyds? When it comes to investing, I’m a big believer in keeping it simple. If I can’t understand how a business makes money and what might go wrong, then I don’t want to invest. This is one reason why I like Lloyds. Despite its giant size, I think it’s quite a simple business. There’s no investment banking or speculative trading at this bank. All Lloyds really does is lend money to real people (and businesses) and provide everyday banking services. This traditional approach to banking seems to work quite well. Although loan losses rose last year due to the impact of the pandemic, the bank still accumulated surplus capital on its balance sheet. This is the cash the bank is allowed to use to fund dividend payments. Lloyds’ costs are lower than most rivals, too. Wages and other operating costs accounted for 52% of Lloyds’ income during the first quarter. At Barclays, that figure was 61%, at NatWest it was 68%. All else being equal, that means less money is left over for shareholders. Not a sure thing Of course, banking is a cyclical industry. Although the Lloyds share price has risen pretty steadily since the start of this year, there’s no guarantee the bank’s progress will continue. Although the outlook for the UK economy appears to be fairly good at the moment, I think it’s still much too soon to be sure how things will turn out as the pandemic recedes. After an initial surge of pent-up activity, I wonder if we’ll see business activity slow down later this year. Unemployment might rise. One particular risk, in my view, is that interest rates might start to rise. If that happened, I expect house prices to fall sharply, after so many years of ultra low mortgage rates. As the UK’s largest mortgage lender, that would affect Lloyds. Lloyds share price: what I’d do There are no risk-free investments. But I think Lloyds is a fairly safe way to get exposure to the UK economy with an attractive dividend income. Broker forecasts suggest the bank will report an after-tax profit of £4.1bn this year and resume normal dividend payouts. These forecasts price the stock on 8.5 times forecast earnings, with a dividend yield of 3.8%. I think this valuation looks attractive and don’t see any red flags that might put me off. I’d be happy to buy Lloyds shares at current levels. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading I was right about the Lloyds share price. Here’s my outlook now The Lloyds share price is soaring. What should I do now? The Lloyds share price has doubled since September. Can it keep going? 5 reasons I think Lloyds share price can touch 60p The Lloyds share price is up 60% in a year! And I still think it’s good value Roland Head has no position in any of the shares mentioned. The Motley Fool UK has recommended Barclays and Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Lloyds share price is still rising: here’s why I’d buy now appeared first on The Motley Fool UK.
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  24. FTSE 100 banking stocks are reinstating dividends. Are they a wise investment? (27/02/2021 - The Motley Fool UK)
    British banks have seen their share prices annihilated by the Covid-19 pandemic. FTSE 100 financial services company Barclays (LSE:BARC) was one of them. A year ago, the Barclays share price crashed over 51% in a few days. However, it has since recovered and is now only 12% lower than its January 2020 high. Lloyds Banking Group on the other hand is still down 39% from its January 2020 high.  Barclays shows more strength than some because it has an investment banking arm, which offset the losses in its high street and commercial lending division. In contrast, Lloyds is much more reliant on mortgages and small business loans. Barclays also enjoys more of an international presence than Lloyds. In Barclays’ recent annual results for 2020, income increased 1% and profit before tax fell 30% to £3.1bn. It had to double its provisions for bad loans in light of the economic destruction and rising unemployment. It has also been a lifeline for small businesses struggling through the pandemic. Barclays has now reinstated its dividend and committed to a share buyback program. Banking on dividends Dividends are the lifeblood of a long-term investment strategy. They help build exponential wealth and dilute the risk when it comes to investing in individual stocks. Banking stocks have long made an attractive investment because traditionally they offer stable and consistent returns with attractive dividend yields. This trust and dependency was shaken after the 2008 financial crisis. And the Covid-19 pandemic brought a straight out ban on dividends across the board. So, are banking stocks a write off or is there still long-term value to be found? Pros and cons I’m not drawn to investing in traditional banks, because I see so much debt and destruction mounting in the global economy. And coupled with rising unemployment, it seems a disaster waiting to happen. However, I can understand the appeal. The big banks underpin the British financial system, so it’s unlikely that they’ll go bust. It’s also an unprecedented time for the economy, with interest rates at record lows and money printing gone mad. Once we emerge from the pandemic to a more robust society, interest rates are likely to be raised and the banks will recoup much of their losses and strengthen again. This gives a bullish case for getting in early and holding for the next decade. But I see a couple of problems with investing in banking stocks today. Firstly, we are still in the midst of the pandemic. The vaccine rollout looks very promising, but how long it will take us to get the world of work back on an even keel remains to be seen. Secondly, the financial environment is changing at a record pace. Financial technology, known as fintech, is making inroads into modernising the way consumers bank. There are many up and coming and challenger banks looking to displace the traditional banking system, and there’s the complex world of cryptocurrency too. With so many unknowns, I’m still unsure about investing in the banking sector. For regular stock market investing ideas and help choosing the best shares to buy now, sign up to The Motley Fool today. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading Top British stocks for March 2021 Stock market recovery: 3 UK shares to buy today The Barclays share price is rising in February. Should I finally buy for my ISA? 2 of the best shares to buy now Barclays restores dividends, but I reckon these are 2 of the best stocks to buy now Kirsteen has no position in any of the shares mentioned. The Motley Fool UK has recommended Barclays. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post FTSE 100 banking stocks are reinstating dividends. Are they a wise investment? appeared first on The Motley Fool UK.
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  25. Domino's Pizza inks $1B accelerated share buyback agreement with Barclays (03/05/2021 - Seeking Alpha)

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  26. 2 FTSE 100 ‘recovery stocks’ to buy (02/04/2021 - The Motley Fool UK)
    With the UK moving forward with its lockdown-easing plan, it seems as if the outlook for the economy is on the up. With that being the case, I’ve been searching for so-called ‘recovery stocks’ to add to my portfolio to profit from the bounce. Here are two of my favourites.  FTSE 100 recovery stocks At the top of my list is financial giant Barclays (LSE: BARC). I think banks are one of the best ways to play the pandemic recovery. These businesses could benefit from improving economic activity, leading to more lending and fewer loan losses. At the same time, higher interest rates could boost profits, although it could be a while before the Bank of England decides to hike rates.  That’s not to say Barclays is without its risks. Another economic shutdown would inflict more pain on the lender and its clients. Further, if interest rates remain depressed for an extended period, Barclays’ profit margins will come under pressure. Then there are regulatory issues to consider. Rising regulatory demands have pushed up group costs in recent years. If costs rise further, without a corresponding increase in income, the bank’s profit could slide.  Still, I’d buy shares in the FTSE 100 recovery stock as a way to play the economic reopening. I think banks have been unfairly punished over the past 12 months. They’re now in a stronger position financially than they were at the start of the crisis. This could lead to significant shareholder returns going forward.  Construction giant I think some of the best recovery stocks to own for the next few years are construction businesses. CRH (LSE: CRH) is perhaps the best example. This is one of the largest building materials business globally, with a strong presence in North America and Europe. In some respects, while the building industry is inherently cyclical, CRH is defensive. That’s because it’s pretty expensive and challenging to start up in the building materials business. New competitors can’t just start selling products overnight. It requires a large capital investment, and even then, it’ll take time to build the economies of scale needed to achieve high levels of profitability.  CRH has these qualities already. That’s why I’d buy this company as part of a basket of recovery stocks. Despite its attractive qualities, the company does have its risks. As noted above, construction is incredibly cyclical. Therefore, if the economic recovery starts to stutter, CRH’s growth may grind to a halt. The firm also has a considerable level of debt, which could cause problems in a downturn. Due to the cyclical nature of the business, it may also be challenging to rely on the group’s dividend. At present, the stock supports a dividend yield of 2.8%. These challenges aside, I believe CRH could be one of the best FTSE 100 shares to own in an economic upswing.  One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading The Barclays share price is cheap. Should I buy now? Barclays’ share price is beating the market in 2021: what next? Barclays share price: is now the time to buy this FTSE 100 share? I’d avoid the Barclays share price and buy this FTSE 250 growth stock How I’d invest £1,000 in a Stocks and Shares ISA today Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Barclays. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 2 FTSE 100 ‘recovery stocks’ to buy appeared first on The Motley Fool UK.
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  27. Adani Green Energy share price hits all-time high; investors’ wealth surges 8 times in less than one year (22/03/2021 - Financial Express)
    Adani Green Energy share price hit a record high of Rs 1,251 apiece, rising 5 per cent on BSE on Monday. Adani Green Energy has been one of the top stocks which have given multi-bagger returns in the current financial year.
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  28. The Lloyds share price is climbing in February. Should I top up my holding? (18/02/2021 - The Motley Fool UK)
    As a Lloyds Banking Group (LSE: LLOY) shareholder, I’m happy to see the price up 12% so far in February. But if you’d told me five years ago that I’d be pleased by a 37p Lloyds share price today… well, you know. The 12-month performance is still pretty shocking, with Lloyds shares down 34% as I write. Obviously that’s all down to the Covid-19 pandemic. Well, actually, maybe not entirely. There must be a Brexit factor there too, but it all leads to pain for shareholders, wherever it comes from. Negativity towards Lloyds does seem to be easing off, though, since Covid-19 vaccine progress has brought some cheer. Since a 52-week low of 23.58p on 22 September 2020, the Lloyds share price has gained 58%. It would have been nice if I’d topped up my Lloyds holding back in September, but why am I considering buying some more now, after that impressive rebound? First, I want to look at the downside risks. As my Motley Fool colleague Kevin Godbold has pointed out, Lloyds is facing a potentially tough economic environment. The UK banking industry is a shadow of what we had back before that Brexit referendum. And the trade deal that our Prime Minister seemed so proud of has offered pretty much nothing to the UK’s banks. Lloyds facing uncertain economics Lloyds is UK-focused these days, which I reckon was a wise strategic move. And with a total of more than 30m customers, there’s still plenty of business. But we really don’t know how long the economic hardship from the pandemic will last — and I think Lloyds could be particularly affected by any lingering weakness. We have no real idea of the size of the actual fallout from Brexit either. Our negotiated exit has most definitely not left us with barrier-free trade. So what about the bull case, from today’s rebased Lloyds share price? Well, Barclays has announced a pandemic-related impairment charge amounting to £4.8bn. I’m not going to try to guess at what Lloyds’ figure might be, but we’ll know soon enough. Lloyds will be releasing 2020 full-year results on 24 February. I think there could be some painful reading there. But the latest from Barclays reflects some of my reasons for feeling bullish about Lloyds right now. The key development is the reinstatement of Barclays’ dividend. It’s only a modest 1p per share for 2020, but it’s a start. On top of that, Barclays plans to buy back £700m of its own shares. Boss James E Staley reckons shareholders should see a meaningful improvement in returns this year. Lloyds share price down on the day The markets reacted unenthusiastically, marking Barclays down 4.5% on the day (at the time of writing). The contagion spread too, with the Lloyds share price pegged back 3.7%. Will there be a more positive reaction to Lloyds’ results next week? City analysts are expecting to see the Lloyds dividend reinstated this year, with some predicting a forward yield of better than 4%. And we’re looking at a price-to-asset value for Lloyds of only around 0.5 now. Those measures make me want to buy more. Yes, I see some serious risks ahead. But even accounting for them, I’m tempted by the Lloyds share price. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading I’m avoiding the Lloyds share price. I prefer this 5% dividend yield stock instead! Should I buy Lloyds Banking Group shares now? Lloyds share price: should I buy in February 2021? The Lloyds share price is falling again! Should I take advantage and buy? The Lloyds share price: 2 reasons I’m keen right now, but 2 big risks I’d note Alan Oscroft owns shares of Lloyds Banking Group. The Motley Fool UK has recommended Barclays and Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Lloyds share price is climbing in February. Should I top up my holding? appeared first on The Motley Fool UK.
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  29. London Markets: U.K. banks slide after cautious Barclays outlook (18/02/2021 - Market Watch)
    Barclays shares led a downturn for the U.K. banks on Thursday, after an underwhelming reaction to financial results.
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  30. Just trying to learn how calls work.. (10/03/2021 - Reddit Stock Market)
    Just been reading into it recently, wanting to understand them before I do anything stupid. Basically what I understand, by way of example (Again, I'm citing what I understand, and am asking for help where I'm wrong: James buys a call for 100 XYZ stock @ $10 each for $1k, and he sets the strike price to $20/share by next month. Three potential situations can follow: The stock price goes up to $20 each in just 3 days; James exercises the call out of fear it won't get any higher and drop to below $10, and receives 100 XYZ stock, now worth double his investment, for half the price. James wins. The stock price goes up to $25/share. James exercises, and gets $15/share extra value, receiving 100 XYZ worth 2500 for a $10/share price. The stock price reaches only $18/share (or dips to $5/share) before the expiration date, and since in either case the strike price is not reached, the option expires worthless. James has lost $1k, and receives no stock. Or does it go like this? XYZ is worth $10. James makes a call, buying the right to 100 XYZ at the assumption they will reach $20 by expiration. He pays $2k for this call. This has two possible outcomes: The price goes up to $25+/share, into the money. James exercises, and receives 100 shares for the $20 price tag, but receives an extra $5+/share value. The price does not meet the $20/share strike price. James loses the $2k and receives no stock. If one or neither of these is correct, I'd really appreciate guidance. Thank you!!   submitted by   /u/ninthtale [link]   [comments]
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  31. Barclays raises Fox price target on market potential for betting (29/03/2021 - Seeking Alpha)

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  32. McDonald's catches new Street high price target from Barclays (01/06/2021 - Seeking Alpha)

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  33. Why I’d ignore the TUI share price and buy other cheap UK shares (21/02/2021 - The Motley Fool UK)
    The TUI (LSE: TUI) share price looks to be one of the top cheap UK shares after its recent declines. At the time of writing, the stock is trading at around 350p. That’s significantly below its five-year high of 1,180p, printed in May 2018.  Unfortunately, the share price only tells us part of the story.  The falling TUI share price The value of the company has fallen as its revenues have collapsed. Revenues were €486m (£426m) in the three months to December, down from €3.9bn a year earlier, as coronavirus lockdowns and travel restrictions took their toll.  The good news is that the company is expecting a recovery in 2021. The operator said it had received 2.8m bookings for summer breaks so far in its latest trading update. That’s an improvement, yes. But it was just more than half of 2019 levels.  Even in the most optimistic scenario, City analysts do not expect the company to return to profit until 2022. Of course, this is just a projection. The company could perform better or worse than expected. Unfortunately, until we have some more certainty on how the vaccine rollout is affecting coronavirus infections around the world, it’s impossible to tell what the future holds for the business and the TUI share price at this stage.  This is why I’d ignore the stock any buy other cheap UK shares instead.  UK shares on offer  There are a handful of other stocks I’d rather buy for my portfolio right now.  These are mainly recovery plays, like the TUI share price. However, I think these businesses have a brighter outlook because they depend less on the international travel market and more on UK consumer trends.  For example, shares in banking giant Barclays look incredibly cheap right now. Investors have been selling the stock due to concerns about its exposure to the UK economy. Nevertheless, so far, the impact on the business has been relatively limited. This might not continue indefinitely. If the economy takes a turn for the worst, Barclays could see a sudden increase in loan losses and drop-in profitability.  However, management’s recent decision to initiate a £700m share buyback and reinstate the dividend gives me confidence that the lender is getting back on track. That’s why I would buy the company as part of a diversified basket of cheap UK shares over the TUI share price today.  Another group I have my eye on is telecommunications giant BT. Demand for this company’s services has only increased over the past year as working from home has become the standard. But this hasn’t stopped investors from deserting the business. The decision to cut its dividend significantly impacted investor sentiment towards the enterprise.  I think the stock has been oversold. BT has performed better than many of its FTSE 100 peers through the crisis. That’s why, despite the challenges facing the business, such as its high level of debt and rising costs, I would buy the stock as part of a portfolio of UK shares today. The firm is not without its challenges, but unlike TUI, the challenges facing this business are not life or death. After all, the travel operator has already been bailed out three times during the past year.  There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading The TUI share price has delivered a 42% return in three months. Should I invest? Will the TUI share price ever return to pre-pandemic levels? I’ll avoid the TUI share price. I prefer this FTSE 2020 top performer for 2021 Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Barclays. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Why I’d ignore the TUI share price and buy other cheap UK shares appeared first on The Motley Fool UK.
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  34. The Lloyds share price is up 50%. I’d still buy. (11/06/2021 - The Motley Fool UK)
    Shares in Lloyds (LSE: LLOY) have put in a solid performance of late. Over the past 12 months, the Lloyds share price is up 50%. Even after that increase, I would still buy Lloyds shares for my portfolio. Here are three reasons why – and one risk I see. Leading high street position Lloyds itself has a well-known brand name and iconic black horse logo. Not only that, the group owns other banking brands with regional strength, such as Halifax and Bank of Scotland. That means that the company is well-positioned to keep attracting new business long into the future. With a large branch network, growing online presence, and market leading position in mortgage lending, I see Lloyds’ prominence in customers’ minds as an asset. It should help the company continue to generate substantial revenues and profits in future. Clear strategic focus Banking, when performed efficiently and cautiously, can be highly profitable. History shows that many banks stumble by getting involved in exotic markets or costly investments without properly assessing the risk. That is what caused the last financial crisis – but it’s also what caused many bank failures across the preceding centuries. Lloyds has a very clear strategy. I think that could help bolster the Lloyds share price. It is squarely focussed on its home market. It is also specialised in retail and commercial banking. So, for example, it doesn’t have the investment banking exposure of rival Barclays, or the global presence of UK-listed banks like HSBC and Standard Chartered. That risks lower profits when other markets outperform the UK, for example. But it also cuts risk in my view, by making the whole business easier to understand and manage. On top of that, it makes sense to focus on UK banking as a way to capitalise on its strong position in this market. Dividend impact on the Lloyds share price The company has restored its dividend. While it is still constrained by its regulator as to how much it can pay, Lloyds is currently paying out the maximum it can. It has also indicated it plans to return to a progressive dividend policy. Meanwhile, the company’s CET liquidity ratio at 16.7% is well ahead of its target of around 12.5%. In layman’s terms, that means the cash pile it could use to help fund future dividends has been growing. As the dividend grows, I expect that to help boost the Lloyds share price. So I would still buy the bank’s shares today, both for income and growth potential. Lloyds share price risk However, all shares carry risks and this is true of Lloyds. For example, the heavy exposure to the UK housing market may be positive right now. But in the event of a housing market downturn, it could leave the bank nursing heavy provisions for bad loans. That could damage both revenues and profits. My next move I already hold Lloyds in my portfolio. But I continue to see it as an attractive investment opportunity at the current price. I would consider adding more Lloyds shares to my holding. The post The Lloyds share price is up 50%. I’d still buy. appeared first on The Motley Fool UK. One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading The Barclays share price gains 25% in 2021, with Lloyds at 35%. Which is better now? Lloyds share price: here’s my outlook for the rest of the year The Lloyds Bank share price has touched 50p. Here’s what I’d do now Where will the Lloyds share price go in June? The Lloyds share price is still rising: here’s why I’d buy now christopherruane owns shares of Lloyds Banking Group and Standard Chartered. The Motley Fool UK has recommended Barclays, HSBC Holdings, Lloyds Banking Group, and Standard Chartered. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  35. 3 ways inflation impacts my FTSE 100 investments and what I’d do now (22/04/2021 - The Motley Fool UK)
    Inflation is making a comeback. Prices have started rising and are expected to rise even more in the months to come.  As consumers, this has a direct impact on our expenses. But did you know that inflation also impacts our FTSE 100 or any other stock market investments? Here are three ways my stock market investments are impacted by rising prices or inflation: #1. Cost pressures Just like inflation impacts my expenses, it impacts the expenditure that FTSE 100 companies incur too. Rapid oil price increases, of the kind we have seen in 2021, raise transportation costs for all companies.  Depending on the industry in which these companies operate and where they are in the business cycle, they are likely to respond differently to rising costs.  In a highly competitive environment like supermarkets, where the battle is price driven to attract consumers, it is harder to increase prices. So, I would reckon that FTSE 100 companies like Tesco and Sainsbury’s would quite likely absorb the costs, which can affect their bottom line.  A hit to the bottom line can in turn affect their share price and the value of their shareholders’ investment. #2. Price increases However, not all companies will suffer from these cost increases. If they are differentiated on aspects other than price, like brand, they may well pass on these increases to consumers. An example I can think of is the FTSE 100 luxury brand and retailer Burberry.  I doubt if any of Burberry’s customers will be put off if it passes on a 1% increase in inflation to them. But if my preferred grocer were to increase, say delivery charges and its own products’ prices, I might consider alterntives. #3. Interest rate increases Inflation can rise now as economic activity picks up, increasing demand. If producers are not adequately prepared, prices will rise. Policy makers are careful of this trend, because fast inflation can put the brakes to economic recovery.  One way they respond is by increasing interest rates. Because of this loan growth can slow down and deposit growth can rise. If we raise less credit because it is getting expensive, we will potentially consume less and prices can stabilise. Also, we are incentivised to save rather than spend through increased returns on our deposits.   If banks have the option to raise interest rates now, it can be good news for their earnings after operating in a really low-interest rate regime for a while now. I think FTSE 100 banks like Lloyds Bank and Barclays are well placed to capitalise from these opportunities.  How I’d invest in FTSE 100 stocks now Based on these potential effects on my FTSE 100 investments, I think it is evident that differentiated brands like Burberry and banks like Lloyds Bank and Barclays can win in an environment of rising inflation.  Besides these, I have also written about other FTSE 100 stocks that are well placed to actually gain from inflationary trends. I would consider those too.  There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading Why the FTSE 100 had a sharp fall yesterday and what I’d do now As the FTSE 100 hovers around 7,000, when will it hit 8,000? FTSE 100 hits 7,000: here’s what I’m doing now Here are my 5 steps to try and become an ISA millionaire Manika Premsingh owns shares of Burberry. The Motley Fool UK has recommended Barclays, Burberry, Lloyds Banking Group, and Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 3 ways inflation impacts my FTSE 100 investments and what I’d do now appeared first on The Motley Fool UK.
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  36. Will BT’s share price recover in 2021? (20/05/2021 - The Motley Fool UK)
    BT (LSE: BT.A) shares haven’t performed well in recent years. Its share price has shown signs of life in 2021, rising from 135p to 170p. However, over a five-year timeframe, the stock is still down about 60%. That’s a disappointing result for long-term holders. Can BT’s share price recover in 2021? Let’s take a look at the outlook for the FTSE 100 telecommunications stock. BT shares: can they bounce back? Looking at BT today, I’m cautiously optimistic on the outlook for the share price. There are several reasons why. The first is that management appears to be relatively confident about the future. In its full-year results for the year ended 31 March, BT advised that a number of uncertainties (the Wholesale Fixed Telecoms Market Review, the 5G spectrum auction, its triennial pension valuation, etc) have now been removed. It also said that after a number of years of tough work, it’s now pivoting to “consistent and predictable growth.” Of course, at this stage, there’s no guarantee BT will achieve the growth it’s talking about. The optimism from management is encouraging, nevertheless. Secondly, broker sentiment towards the stock has improved recently. In late March, for example, BofA Global Research upgraded BT shares to ‘buy’ from ‘neutral’, citing the stock’s attractive valuation and expectations for growth. BofA also raised its price target to 200p, from 160p. More recently, on 6 May, Barclays raised its price target to 190p, from 170p. Zooming in on BT’s valuation, it’s certainly low. Currently, BT sports a forward-looking price-to-earnings (P/E) ratio of about 8.1. That’s well below the FTSE 100 median of 16.8. If BT can execute on its plans, we could see its valuation increase.  Finally, it’s worth noting that CEO Philip Jansen bought 1.25m BT shares last week (spending about £2m). This is very encouraging, in my view. Insiders don’t buy company stock if they think the share price is set to go down. Clearly, Jansen – who’s likely to have a good read on the company’s performance – is optimistic in relation to the prospects for BT shares. Putting all this together, I think there’s certainly a chance that BT’s share price could continue to recover in 2021 and beyond. Should I buy BT today? Having said that, BT isn’t a stock I’d buy for my own portfolio today. One reason is that BT hasn’t been a very profitable business. Over the last three years, its return on capital employed (ROCE) – a key measure of profitability – has averaged just 7.5%. That’s quite low. Over the long term, a stock’s return tends to be quite similar to its ROCE. This means that, in the long run, BT shares aren’t likely to generate strong returns. Another reason is the company has a weak balance sheet. At 31 March, it had net debt of £17.8bn on its books. This adds risk to the investment case. Finally, BT’s dividend track record’s patchy. I like companies that have good long-term dividend growth track records. Overall, I just don’t see BT as a ‘high-quality’ company. So, I’ll be leaving the stock alone for now. All things considered, I think there are much better stocks I could buy. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Should I invest in BT shares right now? The BT share price is up 80%. Would I buy it? Can the BT share price continue to surge? The BT share price is down over 5% today. But I like its latest results The BT share price is up nearly 30% in 2021. Is there a lot more to come? Edward Sheldon has no position in any shares mentioned. The Motley Fool UK has recommended Barclays. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Will BT’s share price recover in 2021? appeared first on The Motley Fool UK.
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  37. The Moderna share price has risen +400%: should I buy the stock now? (18/05/2021 - The Motley Fool UK)
    Since the outbreak of the pandemic last March, Moderna (NASDAQ: MRNA) has risen around 430%, mainly due to the vaccine rollout. Although there was a spike after its initial vaccine announcement, the Moderna share price has been rather volatile since. With it currently sat at $160, here I am going to look at whether now I deem a good time to add Moderna to my portfolio. A solid 2021 The rest of 2021 looks set to mark a good period for Moderna. With Q1 revenues recently announced at $1.9bn, this is substantially more than the $571m revenue of Q4 last year. Moderna recently stated it intends to supply 800 million doses of Covid-19 vaccines in 2021 and three billion in 2022 – a factor that is likely to continue to boost revenue. This places my confidence for the future Moderna share price in good stead, as the large demand is likely to continue. Moderna also recently announced it had signed advance purchase agreements for $19.2bn, all for Covid-19 vaccines, set to be delivered this year. Many analysts also seem to remain positive about the Moderna share price for the future, regardless of the intellectual property (IP) rights scare (explained below). Goldman Sachs raised its target price on the biotech stock to $228, up from $206. Barclays also raised its target to $194 from an original $178. Not all good news However, I cannot see the long term providing opportunities for a rise in the Moderna share price. Firstly, although the rest of 2021 and potentially 2022 provides optimism for Moderna, after this I can see the Covid-19 vaccine market falling off. I suspect by the end of 2022 that a large proportion of populations would have been vaccinated. As a result of this, I predict demand to drop – and therefore more than likely a fall in the Moderna share price. Another negative is the recent announcement by the Biden administration coming out in support for the suspension of Covid-19 vaccine IP rights. This could allow lesser-developed countries to create vaccines locally, potentially affecting the revenue of Moderna. Countries such as India, with its current huge infection problem, could opt for cheaper ways to inoculate its large population. Post-Covid-19 potential? Although many analysts remain positive about the future Moderna share price, I do not share the same levels of optimism. I see the IP rights narrative, supported by the World Trade Organization, potentially posing a real problem for Moderna should it go ahead. Prior to the pandemic, the Moderna share price hovered between $18-$25. With it currently sat well over $150, should the vaccine rollout come to an end within the next few years, what is to stop the share price from falling back down to these levels? From a short-term perspective, I see potential in the Moderna share price for the rest of 2021 and possibly 2022. However, I tend to view stocks with a long-term outlook. As such, I am opting against buying Moderna any time soon. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Will an activist investor boost the GlaxoSmithKline share price? As the UK reopens, is the Cineworld share price a bargain? The easyJet share price rise is falling back. Is this a chance to buy? The Centrica share price is rising. Should I buy today? The Vodafone share price is falling: should I buy today? The post The Moderna share price has risen +400%: should I buy the stock now? appeared first on The Motley Fool UK.
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  38. Bearish takes on GME? (10/03/2021 - Reddit Stocks)
    Mods forgive me, I understand there is a Meme stock megathread, and if this violates rules, I understand. I just wanted to try and make a post anyway. I'm looking to create a collection of bearish or just neutral/non-bullish takes on GME. I understood the squeeze last time, but I do not know why it is going up this time. Is it actually rising because of news? The underlying financial fundamentals of this company suggest an optimistic $20 share price, and yet it is teasing $300 at time of writing this, moreover, it's been trading at over $100 a share since Feb 24th. Last time, it was a short/gamma squeeze that took place over a roughly 3 day period. We are now 2 weeks into this current situation. So, we have two fundamental questions, WHY is it trading at this price, and WHEN will it begin trading at its rational price of sub-20? Also, looking to collect DD found on other subs if possible.   submitted by   /u/Ch_IV_TheGoodYears [link]   [comments]
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  39. The Lloyds share price is rising: should I buy now? (26/03/2021 - The Motley Fool UK)
    The Lloyds (LSE: LLOY) share price has risen about 15% year-to-date. It has outperformed the broader FTSE 100 index in the same period. The UK-centric Lloyds Bank’s business might benefit in the coming months when all the economy’s sectors open.  Here, I further analyse this FTSE 100 stock to understand its long-term prospects. Bull case for Lloyds share price Banking stocks generally perform well when the economy is doing well. The reopening of most sectors in the coming months could help the UK economy to rebound strongly. Lloyds Bank has a good local presence and an excellent network of branches in the UK.  Lloyds Bank is increasingly focusing its attention on digitalisation. In my opinion, this is a very good step as more customers prefer to do digital transactions at their convenience, in their homes. The bank could also save a lot on operating costs in the long term and increase its profits. The stock has underperformed in the last year compared to its competitors like Barclays, which is geographically diversified. Some of the possible reasons for the underperformance could be the Covid-19 pandemic and Brexit. However, these fears are slowly fading, with the drop in Covid-19 cases and less disruption from Brexit so far. The bank has a stable capital position. Its Common Equity Tier 1 ratio is 16.2%, up from 13.8% at the end of 2019. The ratio is well ahead of the management’s target of 12.5% and regulatory requirement of 11%. Bear case for Lloyds share price The bank is more focused on the UK when compared to the other major banks like Barclays and HSBC. If the UK economy fails to pick up as expected, then it could negatively impact the bank’s financial results. Covid-19 cases are slowing and the vaccine rollout is going as planned. However, there is no assurance that Covid-19 case numbers will not rise again in the future.  Lloyds Bank has been lending money to businesses in the UK. There could be defaults that might reduce the company’s profitability. For example, the Coronavirus Business Interruption Loan Scheme (CBILS) is about 80% guaranteed by the government. The lenders still have the 20% risk. We have also yet to know exactly the damage caused by the pandemic. The banking sector is getting very competitive. Lloyds Bank faces competition from a lot of local banks and also international banks that have operations in the UK. Another concern is the growing fintech firms that are eyeing the lucrative banking sector.  Finally, interest rates might remain low for a longer period than expected. This might put pressure on the bank’s profitability as banks make money from the difference of interest received from its advances and interest paid to its depositors. Final view Lloyds Bank is a potential play for the UK economy. Its strong capital position and shift to digital banking are positive. However, there is still uncertainty in the overall business environment. So I am not a buyer of the stock today, but would consider buying at lower levels. A Top Share with Enormous Growth Potential Savvy investors like you won’t want to miss out on this timely opportunity… Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!). Not only does this company enjoy a dominant market-leading position… But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks! And here’s the really exciting part… While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes. That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021. Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge! More reading Why I’d ignore the Lloyds share price and buy this cheap UK share right now Will the Lloyds share price recover in 2021? The Lloyds share price: what have I learned from it? Lloyds share price forecast: is 50p obtainable this year? The Lloyds share price has increased by almost 50%. Here’s what I’d do Royston Roche has no position in any of the shares mentioned. The Motley Fool UK has recommended Barclays, HSBC Holdings, and Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Lloyds share price is rising: should I buy now? appeared first on The Motley Fool UK.
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  40. The NatWest share price has been climbing. Should I buy now? (19/02/2021 - The Motley Fool UK)
    I’m always a little wary when a company changes its name. Still, I can understand NatWest Group (LSE: NWG) wanting to put the old Royal Bank of Scotland days behind it. And if the NatWest share price is anything to go by, the change is paying off. Since a low in September 2020, NatWest shares have recovered a bit more strongly than Barclays. And they’ve easily outperformed Lloyds Banking Group. In fact, since 21 September, the NatWest share price has gained 90%. That’s a cracking result for anyone who managed to time it right. But it only paints a small part of the picture. Over the past 12 months, NatWest has dropped 14%. And over five years, we’re looking at a 28% share price fall. On top of that, the dividend had only just started coming back after the bank’s earlier travails. And then it was halted last year at the onset of the Covid-19 pandemic. That didn’t help the NatWest share price either. But there must be an end to the pessimism somewhere, and an attractive time to buy. Mustn’t there? Well, there’s a bit of positive news in Friday’s full-year results. The dividend is back. The 3p per share final dividend amounts to a modest yield of 1.7%. But NatWest also included plans to pay out around 40% of profits as an ordinary dividend. Those profits aren’t here yet, mind. A big 2020 loss For the year to December 2020, NatWest recorded an operating loss of £351m. Impairment provisions rose too, by £1.4bn compared with 2019 to £6.2bn. So when the bank says it hopes to pay at least £800m in ordinary and special dividends over the 2021–23 period, I’m going to try to contain my excitement. I’ll wait and see. Still, the market did react positively. Despite a brief dip in morning trading, at the time of writing the NatWest share price is up 3.5% on the day. That’s better than Barclays, up 2.8%, and Lloyds, up 1.3%. Lloyds is the last of these big three to reveal its 2020 figures, with results due on 24 February, after Barclays reported on Thursday. But as things stand today, would I buy NatWest shares? Well, some of the uncertainty surrounding the financial sector has been at least partially cleared. The possibility of a no-deal Brexit was surely holding banking shares back, along with the rest of the stock market. But even though we have a deal, the visibility is still not exactly crystal. Trade in services, including banking, is still far from clarified. And though we’re enjoying considerable Covid-19 vaccine success, these new variants do keep popping up. NatWest share price support? I think it’s important not to lose sight of our economic outlook. We might be over the worst of the pandemic downturn. But we could still be in for a good few years of weakness. Still, liquidity figures at NatWest look decent, and I think that should help support the NatWest share price. I’m cautiously optimistic regarding banking in general, and NatWest specifically. But I already own Lloyds shares, and one bank is enough for me in the current risky financial climate. I’ll keep watching. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading 2 FTSE 100 UK shares I’d buy for 2021 My 2021 best stocks to buy list: shares I think are poised for a recovery FTSE 100 watch: should I buy this UK share for my Stocks and Shares ISA today? Lloyds vs Barclays vs NatWest: which FTSE 100 share would I buy for 2021’s recovery? Alan Oscroft owns shares of Lloyds Banking Group. The Motley Fool UK has recommended Barclays and Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The NatWest share price has been climbing. Should I buy now? appeared first on The Motley Fool UK.
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  41. 2 UK stocks from my ‘best shares to buy now’ list (09/02/2021 - The Motley Fool UK)
    The uncertain economic outlook may mean that some investors are unsure about buying UK stocks at the present time. For example, they could suffer from weak operating conditions, and may even deliver negative returns. However, the risks posed by an uncertain economic performance may have been priced into the valuations of many FTSE 100 stocks. As such, they could offer favourable risk/reward opportunities on a long-term basis. Here are two companies that could be among the best shares to buy now because of their low valuations and capacity to benefit from a potential improving long-term economic outlook. A cheap bank among UK stocks Some of the worst-performing UK stocks over the last year have been banks such as Barclays. Its stock price is down by around 20%, even after a recent surge. Low interest rates and a tough economic outlook seem to be causing investor sentiment to weaken. This trend could continue, depending on how coronavirus affects the economy in the coming months. However, this risk appears to be factored in to the Barclays share price. The bank has a price-to-earnings (P/E) ratio of around 10, yet it’s forecast to produce a 45% rise in net profit next year. This could catalyse investor sentiment, while the prospect of a return to paying dividends may also cause interest in the stock to increase. Barclays is also reducing its costs to become more efficient. The global nature of its operations may provide some diversification benefits versus UK stocks that lack a geographical spread. One of the best shares to buy now? Another FTSE 100 stock that could be one of the best shares to buy now is Barratt. The housebuilder appears to offer good value for money relative to other UK stocks. It has a P/E ratio of 11, and is forecast to post a 10% rise in its bottom line in the next financial year. It also has a high customer satisfaction rating that may reduce potential costs in the coming years. Its strong balance sheet could mean it’s in a good position to outperform sector peers. Of course, factors such as a change in government policy towards the housing market could weigh on its future prospects. However, with other potential catalysts, such as low interest rates having the capacity to provide sound operating conditions for the housebuilding sector, the long-term outlook for the company could be relatively positive. Clearly, Barratt’s lack of international diversity means it’s very dependent on the UK for its financial returns. As such, buying other UK stocks as part of a diverse portfolio could reduce geographic risk. It may also allow an investor to capitalise on faster-growing economies from across the world. Over time, this may produce relatively high returns that have a positive impact on a portfolio’s performance. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading 2 FTSE 100 shares I’d buy today for passive income Stock investing: 2 of the best UK shares I’d buy now and aim to hold until 2030 Omega Diagnostics: Is it a buy after its almost 35% rise today? How to set sound financial goals BP’s share price is rising! Should I buy the FTSE 100 stock now or buy other UK shares for my ISA? Peter Stephens owns shares of Barclays and Barratt Developments. The Motley Fool UK has recommended Barclays. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 2 UK stocks from my ‘best shares to buy now’ list appeared first on The Motley Fool UK.
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  42. Barclays restores dividends, but I reckon these are 2 of the best stocks to buy now (18/02/2021 - The Motley Fool UK)
    Today’s big news from banking company Barclays (LSE: BARC) is the resumption of shareholder dividends. Chief executive James E Staley said in the full-year results report the “time is right” because of the “strength” of the business. The company announced a full-year dividend worth 1p per share for 2020 and an intention to buy back £700m of its own shares. Better trading ahead for Barclays Staley reckons Barclays is capable of delivering a “meaningful” improvement in shareholder returns for 2021. And it’s a good job the process of investing is all about looking ahead, because today’s figures don’t look pretty. Profits did come in ahead of forecasts. Even so, attributable profit dropped by 38% compared to the prior year, driving a plunge in earnings per share of 61%. The return on shareholders’ equity fell from 5.3% a year ago to 3.2%. Pandemic-related impairment charges of some £4.8bn took their toll on the figures. But in a note of optimism, the bank said the impairment charge in the fourth quarter was down 19% on the previous quarter. The figure came in around £500m. Judging by today’s weak share price, investors were expecting more encouragement about future trading. But, alas, the immediate outlook remains uncertain. Nevertheless, with the stock near 150p, it’s still around 90% higher than its low of last spring. And there’s some logic in that. Bank stocks are known for their tendency to be the first into and first out of recessions. Even now, the valuation looks modest. The price-to-tangible-asset value is running just below 0.5. And City analysts have pencilled in a robust double-digit rebound in earnings for 2021. Of course, stock markets look ahead, so shares tend to move before the improvements are obvious in the real economy. And one of the dangers now is that investors may have driven the bank shares up too far, or too soon. If general economic recovery from the pandemic stalls, we could see Barclays’ business struggle from where it is now. 2 stocks to buy now If I’d been prescient enough to have invested in Barclays at last year’s lows, I’d think about taking some or all my money off the table now. The ‘trouble’ with bank shares is the underlying businesses are so cyclical that their shares tend to be hyper-responsive to changes in the general economic outlook. I’d argue that there are better investments than the banks to be made now. However, I could be wrong about that and Barclays’ business could recover swiftly and the shares could fly. However, I like the look of FTSE Small Cap groundworks and geotechnical solutions provider Keller. The company has been generating lots of free cash flow and sports a modest valuation. I think the business has the potential to thrive if the general economic recovery gains traction. Equally, profits and the share price could fall if a recovery stalls. In another example, I’m keen on FTSE AIM packaging and automation solutions provider Mpac. The firm has a net cash position on the balance sheet and an undemanding valuation. City analysts expect a double-digit percentage bounce-back in earnings during 2021. Of course, if earnings fall short of expectations, the share price could fall. The high-calibre small-cap stock flying under the City’s radar Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity… You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy. And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline. Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report. But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! More reading At over 150p, here’s what I’m doing about Barclays shares Is the Barclays share price too cheap after recent falls? ISA investing: why I think the cheap Barclays share price could be an investment trap! Lloyds vs Barclays vs NatWest: which FTSE 100 share would I buy for 2021’s recovery? Kevin Godbold has no position in any share mentioned. The Motley Fool UK has recommended Barclays. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Barclays restores dividends, but I reckon these are 2 of the best stocks to buy now appeared first on The Motley Fool UK.
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  43. The best shares to buy now: 3 FTSE 100 bargains (08/05/2021 - The Motley Fool UK)
    I think some of the best shares to buy now are located in the financial sector. As the UK economy recovers from the pandemic, I think this sector will benefit substantially from increased economic activity. And with that in mind, here are three FTSE 100 bargains I would add to my portfolio today.  Best shares to buy now The first company is the asset management and insurance group M&G (LSE: MNG). This company effectively comprises the bulk of insurer Prudential‘s UK operation. This is predominantly an asset management business with a legacy insurance division.  The asset management business was hit hard last year when the pandemic struck. However, rising asset prices have helped the segment recently. As the UK economy recovers, I think this trend will continue.  One of the things I really like about this business is its valuation. The stock is currently dealing at a price-to-earnings (P/E) ratio of 9.4. I think that looks cheap compared to the market average of around 14.  This valuation is the primary reason I would add M&G to my portfolio FTSE 100 stocks. The main risks and challenges facing the group are the potential for another market sell-off, which could hit asset values and profits, and rising competition in the asset management sector.  Splitting up the business I would also buy FTSE 100 insurance group Aviva (LSE: AV) for my FTSE 100 recovery stocks portfolio. Over the past few years, this company has fallen out of favour with the market due to a lack of strategy. That is changing. The new management has been selling off divisions and refocusing the business on its core operations. By freeing up capital from overseas operations, I think the company should be able to invest in its UK division just at the right time, when the economy is recovering from the pandemic. This growth potential is the main reason why I would buy the insurer for my portfolio.  The main risk facing the group is the potential for a significant increase in interest rates. As a life insurance company, this could substantially increase the firm’s liabilities, which could have a devastating impact on its bottom line.  FTSE 100 stock The final company I would buy for my FTSE 100 recovery stocks portfolio is the banking giant Barclays (LSE: BARC).  The group’s investment bank helped it weather the worst of the crisis, and its retail bank should help drive growth as we advance. An improving economy should lead to higher loan demand and lower loan losses. This would allow Barclays to increase its profitability. The bank has also benefited from lower than expected loan write-offs during the pandemic. Its balance sheet is stronger as a result, with the capital ratio coming in at 14.6% at the end of the first quarter. This was slightly above management’s targeted range. Despite the bank’s improving outlook, it still faces some big challenges though. Another wave of coronavirus could inflict significant loan losses on the group. In addition, a slower than expected economic recovery could also hurt growth. To put it another way, Barclays’ outlook is far from clear.  Nevertheless, I would buy the company for my portfolio of FTSE 100 financial recovery stocks right now.  CEO’s £500,000,000 Stake on Industry’s “Uber” Revolution We think that when a company’s CEO owns 12.1% of its stock, that’s usually a very good sign. But with this opportunity it could get even better. Still only 55 years old, he sees the chance for a new “Uber-style” technology. And this is not a tiny tech startup full of empty promises. This extraordinary company is already one of the largest in its industry. Last year, revenues hit a whopping £1.132 billion. The board recently announced a 10% dividend hike. And it has been a superb Motley Fool income pick for 9 years running! But even so, we believe there could still be huge upside ahead. Clearly, this company’s founder and CEO agrees. Learn how you can grab this ‘Top Income Stock’ Report now More reading As the FTSE 100 stays above 7,000, Aviva and Pearson shares rise 2 bargain FTSE 100 shares I’d buy now with £5k 2 FTSE 100 stocks I’d buy in May The Barclays share price dives 6% on results. Is BARC back in the bargain bin? Why has the Barclays share price crashed? And what I’d do now Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Barclays. The Motley Fool UK has recommended Prudential. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The best shares to buy now: 3 FTSE 100 bargains appeared first on The Motley Fool UK.
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  44. RailTel makes muted stock market listing; gains 11% over IPO price to trade at Rs 104.6 apiece (26/02/2021 - Financial Express)
    RailTel stocks were trading at a price of Rs 104.6 per share, up 11.28% from its issue price of Rs 93-94 per share.
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  45. : The Tesla-Reddit connection ‘looks real,’ Barclays says (23/02/2021 - Market Watch)
    Tesla Inc. stock returns and the number of posts on Reddit's WallStreetBets show a 'real' but 'nuanced' correlation, Barclays says.
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  46. ITM Power’s share price has crashed. Should I buy the stock now? (10/05/2021 - The Motley Fool UK)
    ITM Power (LSE: ITM) shares have recently delivered disappointing returns. While the hydrogen energy stock is still up about 140% over the last year, it’s fallen nearly 50% since 27 January when it hit an all-time high of 725p. Is this share price pullback a buying opportunity for me? Let’s take a look at the investment case. ITM Power shares: the bull case I can see why ITM Power is a popular stock at the moment (last week, it was the most purchased stock on Hargreaves Lansdown). For starters, it operates in a high-growth industry. According to Grand View Research, the global green hydrogen market size is expected to grow at a compound annual growth rate (CAGR) of 14.2% from 2020 to 2027. Meanwhile, according to Goldman Sachs, green hydrogen is a “once-in-a-generation opportunity.” It estimates it could give rise to a €10trn addressable market globally by 2050 for the utilities industry alone. This market growth should provide tailwinds for ITM Power. Secondly, ITM has signed deals with some major players in the industry. Already, it has formed partnerships with multinational chemical company Linde (the largest industrial gas company by market share and revenue), Italian energy infrastructure company Snam, energy powerhouse Royal Dutch Shell, and Scottish Power. These deals suggest the company’s technology has significant potential. Third, the company has received some encouraging coverage from brokers. In February, for example, JP Morgan initiated coverage of the stock with an ‘overweight’ rating and a price target of 700p (80% higher than the current share price). Meanwhile, Barclays has also initiated coverage of the stock with another ‘overweight’ rating, saying the stock should reflect the growth potential of the green hydrogen industry over the next decade. Overall, the growth story looks quite exciting. The bear case However, I do have a few reservations about ITM Power shares. One is that the company is still very speculative in nature right now. This is illustrated by the fact that for the six months to 31 October 2020, the group posted revenue of just £0.2m (down from £2.4m a year earlier). It also posted a loss from operations of £12m (up from £9.8m a year earlier). It’s worth noting ITM Power isn’t expected to be profitable in the near future. For the year ending 30 April 2022, analysts expect the group to post a net loss of £16.5m. This adds risk to the investment case. Company stocks that aren’t yet profitable tend to be highly volatile (and often turn out to be poor investments). Another concern is the valuation. At its current share price, ITM Power has a market-cap of about £2.2bn. That looks way too high to me. For the year ending 30 April 2022, analysts expect the group to generate revenue of just £31m. That puts the stock on a forward-looking price-to-sales ratio of about 70. That’s over five times more expensive than Tesla, which is generally considered to be a very expensive stock. ITM Power shares: my move now Weighing everything up, I won’t be buying ITM Power for my portfolio. In my view, the stock is too speculative and the valuation’s way too high. All things considered, I think there are much better growth stocks I could buy today. Like this one… FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading The ITM share price is rising. Is now the time to buy this hydrogen stock? The ITM Power share price is down 30%. Should I buy now? The ITM Power share price is down over 10% today. Should I buy now? The ITM share price slumps! Here’s what I’d do now The ITM share price is up 20% since late March and this is what I’m doing about it Edward Sheldon owns shares in Hargreaves Lansdown and Royal Dutch Shell. The Motley Fool UK owns shares of and has recommended Tesla. The Motley Fool UK has recommended Barclays and Hargreaves Lansdown. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post ITM Power’s share price has crashed. Should I buy the stock now? appeared first on The Motley Fool UK.
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  47. Does the current BT share price represent a FTSE 100 opportunity? (27/05/2021 - The Motley Fool UK)
    It would be a fair statement to say BT (LSE:BT.A) shares have performed poorly for a few years now. Based on past performance and a slight resurgence in the past calendar year to date, could I consider the BT share price as a FTSE 100 opportunity for my portfolio? Let’s take a look. BT share price on the up in 2021 Five years ago the BT share price was 431p, which means it has dropped 59% based on current levels. The Covid-19 pandemic and ensuing market crash last year saw its share price drop from 154p per share to 100p per share. As I write, BT shares are trading for 174p a share. This a 28% increase in 2021 to date. So there are signs of life from the FTSE 100 incumbent. 3 reasons to be optimistic about the BT share price Firstly, insiders are buying BT shares, which is always a positive sign in my eyes. CEO Philip Jansen purchased approximately £2m worth of shares last week. Insiders don’t buy stock if they feel performance isn’t on the up. In addition to that, as the CEO, Jansen will have an inside track on developments at the FTSE 100 incumbent. Linked to insiders buying shares, BT’s management as a whole is exuding confidence about future prospects. In the full-year results for the year ended 31 March, management noted that a few uncertainties and barriers (such as a pension valuation and the Wholesale Fixed Telecoms Market Review) had been removed. These had been affecting performance and contributing to the dwindling BT share price. Management is predicting consistent and predictable growth. There is no guarantee that predicted growth is achieved, although the confidence is good to hear. Finally, broker sentiment towards BT has improved recently. In one of the most recent examples, Barclays decided to raise its price target to 190p from 170p. At current levels, this could be the right prediction on Barclays’ part. FTSE 100 opportunity or one to avoid? I believe the BT share price is currently quite cheap. As is BT’s overall valuation. It has a price-to-earnings ratio of eight, which is below the FTSE 100 average of nearly 17. I think that if BT’s plans and optimism come to fruition, its value will increase. I do have some serious reservations when it comes to BT shares. Firstly, it has over £17bn worth of debt. Debt levels are something I refer to when looking to make investment decisions. In addition to debt, BT hasn’t actually been very profitable which makes me believe this debt will weigh down the BT share price and its overall investment viability. Its return on capital employed (ROCE) is very low for the past three years. Overall, I would not buy BT shares for my own portfolio, despite the cheap valuation. I wouldn’t class BT as a quality company to invest my hard-earned cash in right now, and I believe there are better stocks out there right now. One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading Will BT’s share price recover in 2021? Should I invest in BT shares right now? The BT share price is up 80%. Would I buy it? Can the BT share price continue to surge? The BT share price is down over 5% today. But I like its latest results Jabran Khan has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Does the current BT share price represent a FTSE 100 opportunity? appeared first on The Motley Fool UK.
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  48. Lloyds Bank share price: back to pre-crash levels of 40p. Should I buy it now? (06/03/2021 - The Motley Fool UK)
    Earlier this week, the FTSE 100 banking biggie, Lloyds Bank (LSE: LLOY) finally put the market crash behind it. The Lloyds Bank share price breached 40p, going back up to pre-crash levels. UK Budget 2021 lifts banks’ shares The possible reason for the latest share price rise is not hard to find. The UK Budget 2021 stated it will review the 8% bank surcharge. The surcharge is an additional tax on profits over and above the corporation tax.  This could add to banks’ competitiveness and also support London in maintaining its position as a global financial capital. There is no Brexit deal on financial services so far.  Financial services is important for the UK, contributing to about 7% of the economy. According to the UK Parliament, London alone generates half of this.  It is no coincidence then that the Lloyds Bank share price first spiked above the 40p level on budget day.  It is also no coincidence that other FTSE 100 banking entities have seen a run-up since. As I write, Standard Chartered is the biggest gainer, with a 5% share price jump. HSBC, Natwest, and Barclays have also shown over 2.5% increases in the day.  Dividends resumed too This is the second piece of policy good news in the last three months to give a fillip to UK’s banks. In December, the Bank of England’s Prudential Regulation Authority (PRA) eased rules for dividend payment.  UK’s banks, including Lloyds Bank, responded swiftly by returning to dividend payments. The extent of those dividend payments, however, is still directed by the PRA. As a result, the dividend yield is still fairly low. LLOY’s dividend yield, for instance, is a muted 1.4%. Rising dividend yields? But this may change too, bringing in a third piece of good news. The PRA has said that the restrictions on the extent of dividend payouts are temporary.  This means that as and when they are unrestricted, banks’ dividends and dividend yields can inch closer back to where they were pre-pandemic and pre-stock market crash.  What is next for the Lloyds Bank share price A high dividend yield has been one of Lloyd Bank’s attractive features to investors in the past. A potential increase in dividends can help the Lloyds Bank share price to rise more. As can any follow-up developments on the bank surcharge.  Even otherwise, as the lockdown ends and the economy is back on its feet, things can get much better for banks. The housing market is booming in any case.  Late last year, there were reports of banks increasing interest rates in response to demand for housing loans. The UK Budget 2021 also continues its support for property markets, and house builders have reported strong order books for 2021. This bodes well LLOY, the UK’s largest mortgage lender.  What can go wrong for LLOY But interest rates are low and likely to stay so, meaning that LLOY’s bottomline can continue to be impacted. Further, the extent of bad loans that banks suffer because of the pandemic will only be known over time.  I am watching the Lloyds Bank share price though, as the environment improves around it slowly.  There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading Why I’d ignore the Lloyds share price and buy this UK share from the FTSE 100 Should I buy Lloyds Bank stock for my ISA or other cheap UK shares? The Lloyds share price: here’s what I expect next The Lloyds share price: what do the latest results mean? Stock market recovery: 3 UK shares to buy today Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK has recommended Barclays, HSBC Holdings, Lloyds Banking Group, and Standard Chartered. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Lloyds Bank share price: back to pre-crash levels of 40p. Should I buy it now? appeared first on The Motley Fool UK.
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  49. Stock market recovery: 3 UK shares to buy today (26/02/2021 - The Motley Fool UK)
    I’m looking for stocks to buy for my portfolio in order to invest in the stock market recovery. As the UK economy moves on from the coronavirus crisis, I think some businesses will quickly recover, although this is not guaranteed. As such, I’m focusing on blue-chip UK shares for this strategy.  By concentrating on these businesses, I can minimise my risk of losses if the recovery doesn’t materialise while maximising potential upside in the best-case scenario. Of course, there’s no guarantee I’ll be able to minimise losses or maximise gains, but I want to try and swing the odds in my favour.  Stock market recovery  Three firms that I believe are positioned to profit from an economic recovery are lenders NatWest (LSE: NWG), Barclays (LSE: BARC) and Lloyds (LSE: LLOY).  These banks bore the brunt of the crisis last year. Worries about solvency led regulators to demand they stop paying dividends to investors. At the same time, losses on loans to clients started to mount. So far, the estimate stands at around £18bn for all lenders, although we won’t know the full picture for some time. The Bank of England (BoE) estimates the final tally will be “somewhat less than £80 billion.”  The good news is, the impact has been nowhere near as bad as expected. Therefore, regulators have allowed the firms to resume dividend payouts. Payouts have been capped at a limited level. Nevertheless, it’s a start, and the move helped improve investor sentiment in the stock market recovery.  I think regulators will become more lenient throughout 2021. I hold this view because each of these lenders has emerged from the crisis in a solid financial position. The average Common Equity Tier 1 (CET1) ratios of Lloyds, NatWest and Barclays rose from 15.6% to 16% in the three months to end-December. That’s substantially above the minimum level the BoE expects lenders to hold. UK shares on offer  As such, I think it’s reasonable to suggest these lenders may be allowed to return excess capital to shareholders. They may also benefit from increased profitability as the UK economic recovery continues to gain traction. That may lead to improved investor sentiment. All three banks are selling for less than their book value per share. That would make sense if they were struggling to remain solvent, but that’s clearly not the case. I think there’s a good argument to be made that the shares are undervalued at current levels.  Of course, the UK economic and stock market recovery is really yet to take hold. Therefore, these businesses may continue to see increased uncertainty for some time. It’s also impossible to predict when regulators will allow them to return extra capital. Further, low-interest rates have weighed on UK bank profits for the past 10 years. This may continue for the foreseeable future. So, there are plenty of risks involved with this strategy. It’s not going to be suitable for all investors.  However, I’m comfortable with the level of risk involved here. That’s why I would buy these UK shares for my portfolio today as a way to play the UK stock market recovery.  FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading The Lloyds share price: would I buy the stock today? The Lloyds share price spiked to 41p before falling today! Would I buy LLOY now? Lloyds Bank brings dividends back. Is it a good share for me to buy now? Shares to buy now: why I’d consider Lloyds Banking Group alongside this FTSE 100 stock The Barclays share price is rising in February. Should I finally buy for my ISA? Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Barclays and Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Stock market recovery: 3 UK shares to buy today appeared first on The Motley Fool UK.
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