NatWest (NWG, $6.39) posts profits in 2021, rebounding from the loss a year ago
NatWest earned a pretax profit of 4 billion pounds ($5.45 billion) for the 2021 calendar year, a bounce back from a -351 million pound loss in 2020.
British banks have benefited from a rebound in consumer spending, smaller than expected loan defaults and a solid housing market since the initial phase of the COVID-19 pandemic.
NatWest also announced a dividend of 7.5 pence per share and a 750 million pound share repurchase.
However, analysts are concerned that inflation at near 30-year highs poses a risk to household incomes and threatens the recovery.
“We are acutely aware of the challenges that many people, families and businesses continue to face up and down the country and are working alongside our customers to provide the support they need,” said NatWest Chief Executive Alison Rose.
The bank lowered its annual cost-cutting target to 3% from 4% for each of the next two years, owing to inflation pressures and reinvestment. Nevertheless, it achieved its 4% cost-cutting target for 2021.
NWG's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for NWG turned positive on December 03, 2024. Looking at past instances where NWG's MACD turned positive, the stock continued to rise in of 39 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on November 27, 2024. You may want to consider a long position or call options on NWG as a result. In of 85 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where NWG advanced for three days, in of 332 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 287 cases where NWG Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for NWG moved out of overbought territory on December 09, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 32 similar instances where the indicator moved out of overbought territory. In of the 32 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 5 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NWG declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
NWG broke above its upper Bollinger Band on November 29, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 62, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.626) is normal, around the industry mean (1.030). P/E Ratio (5.443) is within average values for comparable stocks, (18.662). Projected Growth (PEG Ratio) (0.501) is also within normal values, averaging (2.366). Dividend Yield (0.064) settles around the average of (0.058) among similar stocks. P/S Ratio (1.660) is also within normal values, averaging (2.921).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. NWG’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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