After dropping for much of 2020, Barclays has recently found a bottom and its share price is on an upward trend. The company, which is set to release its Q4 earnings report in the next few days, has benefited from a rise in Treasury yields that helped them weather the crisis better.
With a market capitalization of $35.18 billion, Barclays is far from the company it used to be. After all, the world did witness two crises in a little over ten years, with the financial sector taking a hit both times due to accommodative monetary policy.
When Does Barclays Report Q4 Earnings?
Barclays is expected to report its Q4 earnings this month on the 17th of February. The share price is up 1.25% this year, but the prospects of the economic recovery and the subsequent rise in yields bode well for Barclays and other financial institutions.
Market Expectations from Barclays Earnings Statement?
The market expects Barclays to report revenue of $29.69 billion in the fiscal year ending December 2020, a growth of 5.19% year-on-year. Also, the EPS are projected at $0.46 for the same period, declining by more than 60% year-on-year.
Barclays Share Price: Technical Analysis
The technical picture looks constructive, despite the fact that the price is close to dynamic resistance. A close look at the recent price action during the last part of 2020 and the current year, reveals that, while rejected from resistance, the price bounced back. Whenever this happens, it shows strength, a resilient market, one that will usually try at resistance again. Typically, the more a resistance level is tested, the bigger the chance that the price will break it.
We may say that the horizontal consolidation in the last three months or so may also act as a continuation pattern. That is specifically true if we consider the series of higher highs and higher lows that usually forms during bullish trends.
What Is the Outlook for the Barclays Share Price?
Investors may want to wait for Barclays to release its earnings for the fiscal year 2020 and check the actual with the estimate. The focus here is not on revenues but on EPS. They are so depressed that a positive surprise there may be just what Barclays shares need to break out of the consolidation area and to continue the bullish trend. For long-term investors, a key area is at $10 – a break and close above may signal an end to the recent troubles at Barclays.