10 Best Undervalued UK Stocks To Buy Now

6. Barclays PLC (NYSE:BCS)

Number of Hedge Fund Investors: 22

Forward P/E ratio as of August 10: 6.37

Barclays PLC (NYSE:BCS) is a global banking and financial services company with 325 years of history and expertise in banking. The bank operates in over 50 countries and employs approximately 140,000 people worldwide. Barclays PLC (NYSE:BCS) has a market share of 10-15% in most products and operates a vast international network of branches that supports cross-border banking and client operations. Barclays PLC (NYSE:BCS) also has a strong investment banking division that provides a wide range of services such as mergers and acquisitions, trading, and capital raising. This expertise in investment banking sets Barclays PLC (NYSE:BCS) ahead of some of its competitors. As of Q1, the stock was held by 22 hedge funds with stakes amounting to $209.42 million. Marshall Wace LLP is the largest shareholder in the company and has a position worth $53.98 million.

On June 4, Barclays PLC (NYSE:BCS) reported that the recent decline in inflation has positively impacted consumer confidence regarding household finances. Consumer card spending grew by 1% in May alone. Barclays serves around a quarter of UK corporates and over 20 million UK retail customers, making it one of the largest wealth managers in the UK. The bank processes over 40% of the UK’s credit and debit card transactions and ranks top in UK investment banking fees according to Dealogic. In the US, Barclays is the 9th largest issuer in the credit card market and serves 20 million customers.

Over the past 12 months, the stock price has increased by nearly 50%. Revenue is expected to grow by 5.43% this year. The stock’s forward P/E ratio of 6.37 indicates a 42% discount compared to the sector median of 11.08. While Barclays has a total debt of $920.73 billion, it also holds a substantial cash reserve of $883.99 billion. Barclays PLC’s (NYSE:BCS) ongoing cost-cutting and restructuring efforts are expected to result in savings of up to £2 billion by the end of 2026. Additionally, the company projects that it will achieve a return on tangible equity of over 12% by the same year. As part of its new strategy, the company plans to concentrate more on lending to consumers and businesses. Due to these significant initiatives, which position the company for stronger financial performance and growth, it is considered one of the best-undervalued stocks to buy now.