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Natest (LSE: NWG) The lights were shot. It increased by 50 % during the past year and 390 % over a five -year period, with profit distributions.
the Barclays (LSE: Barc) The stock price is also running in great weapons, climbing 68 % in the past 12 months and 290 % over a period of five years.
Investors who carry either shares (or both) will be overwhelmed. Those who do not kick themselves. As always, the big issue is what happens after that.
The clear answer is that no one knows. If they do so, they will be billions. All we can do is give our best snapshot.
The assessments still seem attractive
One way to search for methods is to verify traditional evaluation methods. On the price ratio to profits, both banks seem decent value. Natest is sitting in 10.02, while Barclays is 10.68. The number 15 is a fair value, so they both appear seized with less than its growth value.
Banking investors also want to use the price ratio to the book (P/B), which compares the company's market value to the basic book value. The AP/B is around one of them is solid, while anything less than two still seems to be worthy of attention. Natest in 1.11. Barclays in only 0.72. Both seem to be a decent value on this measure. Parklise is amazingly cheap, given the last performance.
Optimistic goals are optimistic
Another incomplete but useful evidence is to look at the mediator for 12 months. This is not always the current but gives a sense of the place where the market believes that stocks can go.
The 18 analysts covering NatWest produces an average goal of 603.6 pixels, which is 17.75 % higher than today's price. Expectations range from 500p to 700 pixels.
For Barclays, 17 analysts cover the arrow a medium target of 410.55 pixels, with a smaller increase of 7.57 % over today. Again, there is a wide range, from 290 pixels to 500 pixels.
These goals indicate a slower growth in the future, which is only normal after such a strong round. However, they still refer to progress, especially for Natwitist.
Return reinforced by profits
Both banks also reward investors through profits. Natwist is expected to result in 5.79 % next year. Add this to growth expectations, and the total return reaches 23.54 %. This would turn 10,000 pounds to 12354 pounds, which is a very decent return. If that happens.
Barclays has a 2.36 % smaller prediction return. It tends to prefer shares to purchasing shares over stock profits, which is a different way to reward shareholders. If these expectations are correct, the total return will reach 9.93 %, and turn 10,000 pounds to 10,993 pounds.
The economic risks are still. Inforcement and slow growth and consumers are under pressure. Barclays also has a great exposure to the United States through its investment bank, and while Wall Street is strong, there are always fears of stagnation. Discounts in interest rates may support economics, but they will also illuminate clear interest margins, which pressure bank profitability.
Approach
I think growth should slow down, but I still believe both FTSE 100 Banks deserve to think about buying today's evaluations. Personally, I prefer NatWest, because I prefer profit income on re -purchases. None of us knows what is about the corner, so investors must spread risks and investment with a long -term goal.