Top 12 Extreme Value Stocks to Invest In Right Now

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9. Barclays PLC (NYSE:BCS)

Forward P/E Ratio: 6.57

Earnings Growth This Year: 31.66%

Earnings Growth Next Year: 20.38%

Number of Hedge Fund Holders: 25

Barclays PLC (NYSE:BCS) is a British multinational universal bank that offers personal and business banking, wholesale and commercial banking, and private and investment banking solutions. On March 4, Exane BNP Paribas upgraded the stock from Neutral to Outperform with a price target of 370 GBP.

Ariel Global Fund in its Q4 2024 investor letter noted that they bought shares of Barclays PLC (NYSE:BCS) as they anticipate the shares will increase in value due to a recovery in global capital markets and growth in net interest income. This growth is expected to be driven by macroeconomic hedging and asset flows. Moreover, the fund noted that the bank plans to expand its investment banking advisory business. In addition, the bank’s US credit card business offers opportunities for a potential sale or a quicker earnings recovery. Ariel Global expects Barclays PLC (NYSE:BCS) to distribute £3 billion and £10 billion to shareholders through dividends and share repurchases between 2024 and 2026 and achieve a return on tangible common equity of about 12%. It is one of the top extreme-value stocks to invest in right now.

Ariel Global Fund stated the following regarding Barclays PLC (NYSE:BCS) in its Q4 2024 investor letter:

“We bought global bank and financial services provider, Barclays PLC (NYSE:BCS). We expect shares to benefit from a recovery in global capital markets and net interest income (NII) growth driven by macroeconomic hedging and asset flows. The bank is also planning to expand its investment banking advisory business. Moreover, its U.S. credit card business presents opportunities for either a potential sale or a quicker earnings recovery. Taken together, we see a reasonable path for Barclays to pursue its return targets, which include the distribution of £3 billion and £10 billion to shareholders through dividends and share repurchases between 2024 and 2026 and achieving a return on tangible common equity of about 12%.”

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