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Barclays (BCS) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Barclays (BCS - Free Report) closed at $8.96, marking a +1.93% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.4%. At the same time, the Dow added 0.33%, and the tech-heavy Nasdaq lost 1.1%.

Prior to today's trading, shares of the financial holding company had gained 14.75% over the past month. This has outpaced the Finance sector's gain of 3.81% and the S&P 500's loss of 0.01% in that time.

Barclays will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.32, down 11.11% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.16 billion, up 2.91% from the year-ago period.

Any recent changes to analyst estimates for Barclays should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.2% higher. Barclays is currently sporting a Zacks Rank of #1 (Strong Buy).

Digging into valuation, Barclays currently has a Forward P/E ratio of 5.28. This valuation marks a discount compared to its industry's average Forward P/E of 7.97.

The Banks - Foreign industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 21, which puts it in the top 9% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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