On Dec 25, 2014, Zacks Investment Research upgraded Barclays PLC (BCS) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Barclays has been witnessing rising earnings estimates, driven by the successful implementation of its expense-saving initiatives. Also, this major foreign bank is expected to grow at the rate of 15.3% over the long term.
Barclays remains on track to achieve its expense-reduction targets, undertaken to mitigate adverse macroeconomic conditions. In May 2014, the company had announced additional streamlining initiatives (job cuts and restructuring of operations) to reduce expenses going forward.
Earlier, in 2013, the company had announced ‘Transform’ program, aimed at reducing the headcount and taking various strategic measures to lower expenses by £1.7 to reach £16.8 billion by the end of 2015. Notably, adjusted operating expenses in the first nine months of 2014 (excluding the U.K. bank levy and costs to achieve ‘Transform’) came down year over year.
During the last 30 days, the Zacks Consensus Estimate for 2014 surged 23.9% to $1.71 per ADR. For 2015, the estimate inched up a penny to $1.76 per ADR over the same time period.
Other Stocks to Consider
Some other banking stocks worth considering include Meridian Bancorp, Inc. (EBSB), First Connecticut Bancorp, Inc. (FBNK) and Square 1 Financial, Inc. (SQBK). All these stocks sport a Zacks Rank #1.
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