American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

NatWest share price is surging: is it a buy ahead of earnings?

by admin February 13, 2025
February 13, 2025
NatWest share price is surging: is it a buy ahead of earnings?

The NatWest share price is surging this year, helped by the growing profits and rotation towards European banks. It has soared in the last five straight weeks, and is hovering at its highest level in 17 years, making it one of the best-performing bank stocks in the UK. So, is NWG a good investment ahead of earnings?

NatWest share price surges ahead of earnings

The weekly chart shows that the NWG stock price has been in a strong uptrend after bottoming at 75.68p in 2020. It has soared to 450p, a 500% surge, transforming it into a $45 billion behemoth. 

The chart shows that the stock has risen in the last five weeks and has remained significantly above the 50-week and 100-week Exponential Moving Averages (EMA). It has moved above the key resistance point at 275.7p, its highest swing in January 2023. 

The Average Directional Index (ADX) has moved to 40, a sign that the stock has a strong momentum going on. NatWest’s MACD indicator has continued rising, signaling that it has a strong momentum.

The Relative Strength Index (RSI) has continued rising and is nearing the overbought level at 72. Therefore, the stock will likely soar as investors embrace the Fear of Missing Out (FOMO) and the trend continues. 

There is a risk that the NatWest share price may drop in the coming weeks as it faces mean reversion. Mean reversion is a situation where a stock or any asset moves drop and approach the 50-week moving average level. 

Natwest stock chart by TradingView

NWG earnings ahead

The NatWest share price has done well after Barclays released strong financial results. Barclays said that its full-year pre-tax profit rose by 24% to £8.1 billion, higher than the expected £8.08 billion.

The company’s business was boosted by the trading division that benefited from the Trump bump. The company also announced a fresh £1 billion share repurchase program and continued to slash costs across all divisions. 

These results bode well for NatWest, which releases its financial results on Friday. As a recap, the most recent third-quarter results showed that its total income rose to £3.7 billion. Its net impairment slowed to £245 million as the net loans to customers rose by over £8.4 billion.

Analysts anticipate that the net interest income will be £2.9 billion, bringing the full-year figure to £11.2 billion. Its total income will be £3.71 billion and its annual figure will be £14.5 billion. This will bring its profit for the fourth quarter to £965 million. 

Analysts believe that NatWest’s business will do well in the next few years, with its estimated net interest income rising from £12.9 billion in 2026 to £13 billion. This is a notable since the Bank of England (BoE) is expected to continue cutting interest rates in the coming months.

The BoE has already slashed rates three times, and in its meeting this month, it cut them by 0.25%. Low interest rates hurt banks by reducing the net interest margin. In an emailed note to Invezz, an analyst from Wedbush said:

“NatWest is positioned well for growth this year. However, we should be careful of the Bank of England’s policies, potential trade war with the US, and the fact that the British economy is slowing. Competition is also rising, which could hit interest margins in the future.”

However, low rates can also stimulate an economic growth and lead to higher deposits. That’s because investors often move their cash from banks to higher-yielding assets when interest rates rise. This explains why the net income margin of most banks have slowed recently. 

The post NatWest share price is surging: is it a buy ahead of earnings? appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Alibaba chairman confirms Apple partnership for AI-powered iPhones in China
next post
Long OS: OneStream Sees Sharp Rejection After 20% Drop, Reversal to $26 in Sight?

Related Posts

Indian markets tumble as Sensex, Nifty drop over...

December 13, 2024

Asian markets close: Sensex falls 239 pts; Japan’s...

May 28, 2025

Marvell stock analysis: overvalued or undervalued?

December 5, 2024

Asia markets decline as Tokyo inflation accelerates, South...

November 29, 2024

Shein’s global ambitions leaves some cybersecurity experts fearful...

July 11, 2024

PayPal stock price is rising, but chart signals...

May 7, 2025

Care.com settles charges it inflated jobs listings and...

August 30, 2024

Boop crypto surges 242% in 24 hours as...

May 2, 2025

Laopu Gold stock surges 437% since June listing:...

December 20, 2024

JEPI ETF is beating the S&P 500 index,...

March 10, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Interview: Strategic location gives Brazil Potash cost advantage in domestic fertiliser market, says CEO Matt Simpson

      June 1, 2025
    • Canada’s Q1 GDP expands by 2.2%, driven by exports spike ahead of potential US tariffs

      June 1, 2025
    • President Trump to host farewell for Elon Musk as DOGE leader steps away

      June 1, 2025
    • UK’s digital banks face divergent fortunes: Starling stumbles, Monzo and Revolut soars

      June 1, 2025
    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025

    Categories

    • Business (3,022)
    • Investing (2,459)
    • Latest News (1,994)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved