Why BARCLAYS PLC-SPONS ADR (NYSE:BCS) could fit Mark Minervini’s high-growth criteria

Growth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if BARCLAYS PLC-SPONS ADR (NYSE:BCS) is suited for growth investing. Investors should of course do their own research, but we spotted BARCLAYS PLC-SPONS ADR showing up in our Minervini growth screen, so it may be worth spending some more time on it.

A Technical Analysis using the Minervini Trend Template.

The Minervini Trend Template is a set of technical criteria designed to identify stocks in strong uptrends. We can check all the boxes for BCS:

• ✔ Relative Strength is above 70.
• ✔ Current price is within 25% of it's 52-week high.
• ✔ Current price is at least 30% above it's 52-week low.
• ✔ The current price is above the 50-, 150- and 200-day SMA price line.
• ✔ The SMA(200) is trending upwards.
• ✔ The SMA(150) is above the SMA(200)
• ✔ The SMA(50) is above the SMA(150) and the SMA(200)

High Growth Assessment of BCS

ChartMill assigns a High Growth Momentum Rating (HGM) to every stock. This score ranges from 0 to 10 and evaluates the different growth and profitability aspects, including accelleration, surprises and revisions. BCS scores a 5 out of 10:

Earnings Momentum

• The EPS of BCS has exhibited growth from one quarter to another (Q2Q), with a 125.0% increase. This underscores the company's ability to generate higher earnings and improve its financial standing.
• Accelerating EPS growth for BCS: the current Q2Q growth of 125.0% exceeds the previous quarter Q2Q growth of 26.83%.
• Sales acceleration happened 2 quarters in a row.
• BCS has experienced 20.59% growth in EPS over a 12 month period, demonstrating its ability to generate sustained and positive earnings momentum.
• BCS has achieved 24.4% growth in its revenue over the previous quarter, signaling positive momentum in its financial performance and potential market opportunities.
• BCS shows accelerating Sales growth: when comparing the current Q2Q growth of 24.4% to the previous quarter Q2Q growth of 4.8%, we see the growth rate improving.
• Sales acceleration happened 2 quarters in a row.
• BCS has a strong history of beating EPS estimates in the last 4 quarters, signaling its ability to consistently exceed market expectations. This indicates the company's strong financial performance and its potential for creating shareholder value.

Financial Strength & Profitability

• With positive growth in its profit margin over the past year, BCS showcases its ability to improve profitability.
• BCS has experienced notable growth in its free cash flow (FCF) over the past year, signaling improved cash generation and strong financial performance. This growth suggests the company's ability to generate excess cash for reinvestment or shareholder returns.

Market Strength & Institutional Confidence

• BCS demonstrates a balanced ownership structure, with institutional shareholders at 55.37%. This indicates a diverse investor base, which can contribute to price stability and potential future growth.
• The Relative Strength (RS) of BCS has consistently been strong, with a current 94.09 rating. This indicates the stock's ability to exhibit relative price outperformance and reflects its competitive strength.

How do we evaluate the setup for BCS?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. BCS scores a 5 out of 10:

Although BCS has an excellent technical rating, the quality of the presented setup is not ideal at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

Check the latest full technical report of BCS for a complete technical analysis.

More like this

More ideas for high growth momentum stocks can be found on ChartMill in our High Growth Momentum + Trend Template screen.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.