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

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Barclays (BCS - Free Report) closed the most recent trading day at $6.67, moving -1.19% from the previous trading session. This change lagged the S&P 500's 0.89% gain on the day. At the same time, the Dow added 1.2%, and the tech-heavy Nasdaq lost 0.68%.

Heading into today, shares of the financial holding company had lost 19.93% over the past month, lagging the Finance sector's loss of 11.27% and the S&P 500's loss of 3.9% in that time.

Wall Street will be looking for positivity from Barclays as it approaches its next earnings report date.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.71 per share and revenue of $32.28 billion, which would represent changes of +12.5% and +9.28%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Barclays. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Barclays is currently a Zacks Rank #2 (Buy).

Digging into valuation, Barclays currently has a Forward P/E ratio of 3.96. This valuation marks a discount compared to its industry's average Forward P/E of 7.33.

The Banks - Foreign industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 18, which puts it in the top 8% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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