10 Best European Bank Stocks to Buy According to Analysts

5. Barclays PLC (NYSE:BCS)

Number of Hedge Fund Holders: 21

Stock Upside Potential as of January 24: 13.76%

Barclays PLC (NYSE:BCS) provides various financial services, including retail banking, credit cards, wholesale banking, investment banking, wealth management, and investment management services. It was one of the best-performing bank stocks in Europe after rallying by 70% in 2024. The rally came on the bank embarking on a restructuring drive that entailed stabilizing operations and improving profitability.

Likewise, Barclays PLC (NYSE:BCS) enhanced its focus on the domestic lending business in the UK, which includes mortgage lending and personal loans, therefore enjoying greater stability. It also reduced its operating costs in the volatile investment banking segment. The acquisition of Tesco Bank all but strengthened the bank’s retail banking segment, consequently bolstering growth metrics.

The restructuring drive and investment catalyzed Barclays PLC (NYSE:BCS) to deliver solid third-quarter results. Net profits rose to £1.6 billion, and revenues rose 5% yearly to £6.5 billion. The company’s investment banking division, which has significant exposure to the US market, did well in terms of growth. The growth was driven by increased stock market volatility and renewed deal-making activity, which increased fee revenues. Additionally, the bank’s net interest income is exceeding expectations.