Why Barclays (BCS) is a Top Momentum Stock for the Long-Term

Barclays (BCS), a global banking firm with £1.6 trillion in assets, is highlighted by Zacks as a notable stock despite its #3 (Hold) Zacks Rank, due to strong underlying metrics. The company holds 'B' ratings for both Momentum and VGM Style Scores, supported by a 0.2% share price increase over the past four weeks, two recent upward analyst revisions for FY2025 earnings estimates to $2.31 per share, and a historical average earnings surprise of +36.5%. This analysis suggests BCS warrants investor consideration, particularly when combining Zacks' proprietary Rank with its complementary Style Scores for identifying high-probability outperformers.

Analysis

Barclays PLC (BCS) is currently rated as a #3 (Hold) by Zacks, a neutral stance that is contrasted by several positive underlying metrics. Despite the hold rating, the firm is highlighted for its favorable momentum characteristics, earning a 'B' grade in both the Momentum Style Score and the composite VGM Score. This is supported by a modest 0.2% share price increase over the past four weeks and, more significantly, by positive shifts in analyst sentiment. Specifically, two analysts have revised their fiscal 2025 earnings estimates upward within the last 60 days, causing the Zacks Consensus Estimate to increase by $0.06 to $2.31 per share. Furthermore, the company, which reported £1,598.7 billion in assets as of June 30, 2025, has a strong track record of outperformance, boasting an average earnings surprise of +36.5%. The analysis suggests that while the overarching rank is neutral, the combination of positive earnings revisions and strong momentum factors positions BCS as a noteworthy stock within the finance sector.

Key Decisions for Investors

• Investors should weigh the positive momentum indicators, such as the 'B' Momentum Score and upward earnings revisions, against the neutral Zacks #3 (Hold) rank, which tempers expectations for strong near-term outperformance.
• Monitor future analyst earnings estimate revisions closely, as the current positive thesis is largely dependent on the continuation of this upward trend from the current $2.31 per share consensus for fiscal 2025.
• Consider the company's significant historical average earnings surprise of +36.5% as a potential source of upside that may not be fully priced into the stock at its current 'Hold' rating.