Should I buy Barclays stock in 2025? Insights for South Africa

What is Barclays?

How much is the Barclays stock?

The price of Barclays stock is rising this week. Currently trading at 326.05 pence, Barclays shares are up 0.65% over the past 24 hours and 0.18% for the week. The stock boasts a market capitalization of £46.36 billion, with a robust three-month average daily volume of 54.3 million shares.

Our full analysis on the Barclays stock

Having thoroughly examined Barclays PLC’s most recent financial disclosures alongside its robust three-year market trajectory, our proprietary multi-sourced analysis—incorporating quantitative metrics, technical signals, comparative peer review, and broad market data—delivers a clear framework for reassessing the company’s value proposition. The synthesis of these factors signals that Barclays may be approaching an inflection point of renewed strategic significance. So, why might Barclays stock once again become a compelling gateway to Europe’s banking and fintech sector in 2025?

Recent Performance and Market Context

Barclays shares (LSE: BARC) have registered an emphatic resurgence, trading at 326.05p as of 29 May 2025—a 52.25% increase year-on-year and +37.71% over the past six months. This rally positions Barclays among the top-performing multinational bank stocks in its peer group, notably outpacing most competitors in both the UK and Europe. The recent trajectory has been buoyed by:

• Q1 2025 Strong Outperformance: Quarterly revenue rose 11% YoY to £7.7bn, and pre-tax profit surged 19% to £2.7bn, exceeding consensus estimates by a healthy margin.
• Upward Revisions: Management raised 2025 net interest income guidance above £12.5bn, reflecting both confidence and momentum.
• Capital Management Initiatives: The recently announced £1bn share buyback signals not only robust free cash flow but a management intent to return value directly to shareholders.
• Debt Market Optimisation: Successful issuance of £1bn in bonds, alongside CNY 700m in fixed-rate yuan notes, underscores global investor confidence in Barclays’ creditworthiness.

Macroeconomically, Barclays is benefiting from a solid UK economy with steady GDP growth, favourable rate environments supporting banking margins, and secular digital transformation trends driving new service adoption. Investor appetite for quality value plays—banks with digital leadership, international exposure, and strong dividend profiles—remains strong, especially as the sector emerges from a cycle of underperformance into renewed growth.

Technical Analysis

The technical picture for BARC is resolutely constructive, with all major signals corroborating continued bullish momentum:

• Moving Averages: The stock trades above the 20-day (327.14p), 50-day (326.17p), 100-day (324.93p), and 200-day (312.98p) moving averages—an unequivocal bullish trend alignment.
• Momentum Indicators: The 14-day RSI stands at 53.10, firmly in neutral territory, which leaves meaningful room for further upside before any overbought conditions emerge. The MACD (12,26,9) at +0.41 is providing a fresh buy signal—typically indicative of a nascent or strengthening uptrend.
• Support and Resistance: Key support resides at 323.64p, with resistance at 329.04p—well within a tightening bullish channel. Notably, the 52-week high of 331.20p is within striking distance, and a clean break would likely catalyse another leg higher.
• Market Structure and Consensus: Technical consensus is at “Strong Buy,” and the trading action consistently supports upward moves, with pullbacks being absorbed near support.

In sum, Barclays exhibits a classic technical structure of a stock in the midst of a sustainable rally, with no significant near-term signs of exhaustion and a strong technical base underpinning further advances.

Fundamental Analysis

From a fundamental vantage, Barclays’s recent financial outputs and strategic direction position the stock as an outlier of strength in European banking:

• Growth and Profitability: Q1 2025 results highlight double-digit growth rates across key metrics. Revenue climbed 11%, pre-tax income advanced 19%, net profit grew 20%, and EPS leapt 26%, reflecting both operational efficiency and organic growth.
• Efficiency and Returns: With a Q1 RoTE (Return on Tangible Equity) of 14%—substantially above the sector average—and a cost-to-income ratio improving to 57%, Barclays demonstrates both profitability and rigorous cost discipline.
• Attractive Valuation: The stock trades at a P/E of just 8.58, notably below the sector average; such a multiple does not seem to adequately reflect the quality of earnings or phase of strategic renewal. The current dividend yield of 2.58% is an appealing feature for income-seeking investors, especially combined with the share buyback.
• Strategic Strengths: Barclays’ sector leadership in the UK, geographic and business line diversification, and growing presence in high-margin investment banking and wealth management all contribute to a compelling long-term investment rationale.
• Digital Leadership and Innovation: The company’s transformation agenda—anchored in digital banking, fintech partnerships, and operational automation—is a decisive differentiator that is translating to tangible top-line and margin improvement.

When compared to direct peers, Barclays offers a rare combination of growth, defensive attributes, and forward-looking momentum, all at a valuation that appears highly compelling.

Volume and Liquidity

Market participation in Barclays shares remains exceptionally robust:

• Average Daily Volume: Trading activity averages 54.3 million shares daily, providing outstanding liquidity for both retail and institutional investors. This depth of market consistently anchors price action and narrows spreads.
• Float and Institutional Interest: A large, widely held float supports dynamic valuation discovery and reflects continued confidence from global funds. Recent volume surges around earnings and share buyback announcements highlight active investor engagement and conviction.

The consistent liquidity profile underlines Barclays’ transparency and attractiveness for active investors, while also providing a stable platform for longer-term holders.

Catalysts and Positive Outlook

Multiple powerful catalysts reinforce the upside narrative for Barclays as 2025 unfolds:

• Strategic Expansion: The bank’s focus on scaling its investment banking and wealth management franchises is meeting clear demand and is boosting both top-line growth and margin expansion.
• Digital Enablement: Leadership in banking digitisation is translating to market share gains and operational leverage—reinforced by sustained investments in fintech and digital infrastructure.
• Balance Sheet Strength: The ongoing optimisation of the capital structure—including debt refinancing and the £1bn buyback—positions Barclays for both resilience and responsiveness to evolving market conditions.
• Sustainability and ESG Progress: Clear progress in environmental, social, and governance (ESG) stewardship is increasingly viewed as a competitive differentiator in the financial sector, enhancing Barclays’ reputational strength and appeal to ESG-driven investors.
• Macro Tailwinds: Rising rates support net interest margin expansion, while diversified geographic and business exposures mitigate concentration risks and position the group to capitalise on growth in both developed and emerging markets.

Consensus analyst targets presently imply a further +30% upside from current levels—a reflection of Barclays’ strong execution, improving quality of earnings, and the positive sector backdrop.

Investment Strategies

Barclays currently offers a rare confluence of entry points suitable for varying investment horizons:

• Short-term positioning: Technicals argue for tactical trades on breaks above the 331p 52-week high, with well-defined stop-losses near key supports. Recent momentum and volume surges around newsflow provide a fertile environment for active traders.
• Medium-term builds: The recent pullback and subsequent rebound from support at ~324p offers a textbook accumulation phase before likely bullish continuation, especially as new catalysts approach (e.g., Q2 earnings, digital product rollouts).
• Long-term accumulation: For patient, long-horizon investors, Barclays’s attractive P/E, rising dividend stream, and strong buyback programme together suggest an excellent compounder profile—especially considering the firm’s leadership in high-value banking segments and digital finance.

Optimal positioning seems to align with entries near current support zones or ahead of forthcoming positive catalysts, leveraging both technical and fundamental tailwinds.

Is It the Right Time to Buy Barclays?

Barclays’s current positioning is underpinned by a blend of robust fundamentals, proven management execution, and a market narrative deeply favourable to growth-oriented, digitally advanced financials. The bank’s ability to deliver above-consensus results, raise forward guidance, and simultaneously return capital to shareholders through dividends and buybacks signals a level of management confidence that rarely coincides with an undervalued stock.

The technical configuration points to a market in clear bullish alignment, while the fundamental valuation remains decidedly attractive relative to both historical norms and global peers. As sector sentiment pivots, Barclays stands poised to benefit disproportionately, with credible catalysts on the horizon and a compelling risk/reward profile.

For investors seeking to harness both value and growth within financial services, Barclays currently seems to represent an excellent opportunity. With its unique blend of stability, innovation, and upside potential, the stock may well be entering a new bullish phase—inviting a close, confident re-examination for strategic allocations in 2025 and beyond.

In sum, Barclays presents a convergence of positive technicals, resilient fundamentals, and powerful structural catalysts that may justify renewed interest and strategic positioning by both local and international investors seeking exposure to European financial innovation and growth.

How to buy Barclays stock in South Africa?

Buying Barclays shares online is now straightforward, safe and accessible to South African investors through a regulated online broker. You have two main ways to invest: buying actual Barclays shares (spot buying) to hold in your portfolio, or trading Contracts for Difference (CFDs), which allow you to speculate on price movements with leverage. Each method has specific advantages and fees, so your choice depends on your investment goals and risk tolerance. To help you choose the broker that best suits your needs, you’ll find a detailed comparison further down this page.

Spot Buying: Direct Purchase of Barclays Shares

When you buy Barclays stock “for cash”, you actually own the shares in your name. This means you benefit from any price appreciation and may receive Barclays dividends. Fees for South African investors typically include a fixed commission per order—often around R90 to R200 per transaction—plus possible currency conversion costs if you buy on the London Stock Exchange (LSE) in GBP.

Example

If Barclays' share price is 326.05 pence (about £3.26 or ~R77 at an exchange rate of R23.50/£1), a R19,500 investment (≈$1,000) allows you to buy approximately 250 shares (R19,500 / R77 = 253 shares, less a brokerage fee of R100).
✔️ Gain scenario:
If the share price rises by 10%, your holding is now worth around R21,450.
Result: That’s a R1,950 gross gain—+10% on your investment (not including small FX or local taxes).

Trading via CFD

CFDs (Contracts for Difference) allow you to trade on Barclays shares’ price movements without owning the actual shares. With CFDs, you can use leverage (for example, 5x), meaning you can open a larger position with less capital. However, fees include the spread (difference between buy and sell prices) and overnight financing if positions are held more than a day.

Example

You invest R19,500 (~$1,000) with 5x leverage to open a CFD position on Barclays. This gives you R97,500 market exposure.
✔️ Gain scenario:
If the Barclays share price rises by 8%, your position gains 8% × 5 = 40%.
Result: That’s a R7,800 gain on your initial R19,500 stake (excluding spreads and overnight costs). Note that leverage magnifies both gains and losses.

Final Advice

Before investing in Barclays shares, be sure to compare brokerage fees, currency conversion costs, platform features, and support services, as these can vary significantly across providers. You’ll find a broker comparison table further down this page to guide your selection. Ultimately, the best method—spot buying or CFD trading—depends on your risk appetite and investment objectives. Take time to consider your strategy, and approach online investing with confidence and care.

Our 7 tips for buying Barclays stock

The latest news about Barclays

Barclays’ first-quarter 2025 results exceeded analyst expectations, with net profit up 20% year-on-year. The company reported quarterly net profit of £1.86 billion, lifted by a robust 19% increase in pre-tax earnings to £2.7 billion, well above consensus estimates. Revenue grew 11% year-on-year to £7.7 billion, reflecting broad-based strength, particularly in investment banking and digital finance segments. These results have driven Barclays’ shares up 0.18% for the week and over 52% for the past year, supporting an optimistic sentiment among market participants in both the UK and South Africa, where Barclays maintains brand recognition and institutional relationships following its historic ties to Absa Group.

Barclays announced an upward revision of its 2025 guidance, now expecting net interest income to top £12.5 billion. This adjustment reflects improving credit and margin conditions across its global operations, which includes African markets where the group’s franchise is focused on wholesale and investment banking. For South African stakeholders, who monitor foreign banking sector performance as an indicator of currency and funding conditions, Barclays’ outlook signals strong international peer confidence and the likelihood of continued capital flows to emerging markets like South Africa.

A new £1 billion share repurchase programme was launched in May 2025 to enhance investor returns. This buyback represents a constructive move for current shareholders and reflects strong capital generation. For South African institutions and asset managers investing internationally, this capital management strategy underscores the potential for improved total return from UK financials, coinciding with the strengthening of Barclays’ earnings power and capital base—a factor often tracked by SA-based analysts benchmarking offshore exposures.

Technical indicators continue to show strong upward momentum, with Barclays trading above all key moving averages. Technical consensus remains “Strong Buy”, with the stock’s Relative Strength Index in a neutral zone (53.1) and positive buy signals from both MACD and all major moving averages. This persistent strength is relevant for South African professional traders and portfolio managers seeking liquid, large-cap exposures offering positive trend signals in global developed markets.

Barclays’ transformation strategy focuses on digital banking innovation and emerging market expansion, including continued engagement in Africa. The company maintains strong expertise in investment banking and digital services, which has led to recent product launches and partnerships with fintechs. Its ongoing strategic interest and historic presence in South Africa support local collaboration opportunities and knowledge transfer, creating positive spillovers for the regional financial services sector and reinforcing Barclays’ role as a global financial partner for South African corporates, institutions, and investors.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.