$BCS “Barclays, now there’s a thought” … sound familiar?

PROs:

Trading at 53.4% below its fair value
Earnings are forecast to grow 15.96% per year
Earnings grew by 54.1% over the past year
BARC is good value based on its PE Ratio compared to the UK market
BARC is good value based on its PEG Ratio
BARC is good value based on its PB Ratio compared to the GB Banks industry average
BARC’s forecast earnings growth (16%) is above the savings rate (0.5%)
BARC’s earnings are forecast to grow faster than the UK market per year
BARC’s revenue is forecast to grow faster than the UK market
BARC’S current net profit margins (12.5%) are higher than last year (8.1%)
BARC has become profitable over the past 5 years, growing earnings by 47.5% per year
BARC’s earnings growth over the past year (54.1%) exceeds its 5-year average
BARC earnings growth over the past year (54.1%) exceeded the bank's industry (26.6%)
BARC insiders have bought more shares than they have sold in the past 3 months



CON’s:

Highly volatile share price over the past 3 months
BARC’s 1 year return = -43.5%
BARC is poor value based on its PE Ratio compared to the Banks industry average
BARC’s revenue (2.6% per year) is forecast to grow slower than 20% per year
BARC has a high level of bad loans
BARC does not pay a dividend


Report:

Fundamentally the picture doesn't look all that bad, although there is a lot of negative news out there surrounding Barclays and banks in general.
From a Technical standpoint, the symmetrical triangle is located at the bottom of a steep decline, which can have a tendency for another leg lower. The 20 period moving average is also just above the apex capping further gains at this stage.

Bottomcatcher’s Opinion: Wait for a convincing break out of the triangle, to determine what direction we could be heading. A break to the upside and above the 100.00 level, would perhaps get my attention (providing we hold above the 100.00 level on the weekly chart) and only then I would consider taking a long position, to hold for the medium to long term.

Note: Levels are subject to change over time.