What does the future hold for Barclays PLC, RBS plc, Prudential plc and Legal & General Group Plc?

Could these stocks deliver improving performance? Barclays PLC (LON:BARC) (BARC.L), Royal Bank of Scotland Group plc (LON:RBS) (RBS.L), Prudential plc (LON:PRU) (PRU.L) and Legal & General Group Plc (LON:LGEN) (LGEN.L)


I’m optimistic about the prospects for the financial services sector, which is why I’m taking a closer look at the outlooks of Barclays PLC (LON:BARC) (BARC.L), Royal Bank of Scotland Group plc (LON:RBS) (RBS.L), Prudential plc (LON:PRU) (PRU.L) and Legal & General Group Plc (LON:LGEN) (LGEN.L).

Barclays seems to have a stronger future than its recent past. Its shares have been relatively volatile over the last couple of years, with macroeconomic conditions and regulatory risk seeming to weigh on investor sentiment.

However, with what seems to be an improved business model following its restructuring, the company could generate excess capital in future. This may cause the Barclays share price to become increasingly appealing to investors due to its income potential, with a 4% forward yield being relatively high in my eyes.

RBS continues to experience challenges dating back a number of years. They could hold back investor sentiment to some degree over the medium term, although its underlying performance continues to improve.

With RBS having a forward dividend yield of over 4%, it could offer good value for money compared to a number of its industry peers. With the potential for improved trading conditions as global growth looks set to continue, it could perform better than many of its FTSE 100 peers in my view.

Prudential’s business has gone from strength-to-strength in recent years in my opinion. The company has been able to put in place what seems to be a balanced growth performance, with a focus on Asia seeming to represent a large part of its future prospects.

With wage growth continuing to be high, Prudential’s focus on Asia could increase over the coming years. Alongside a restructuring, this could improve its investment potential for the long run.

Legal & General’s business model and strategy seem to be sound in my opinion. While it may lack the growth potential of some of its financial services peers, it has a 6% dividend yield and seems to offer good value for money.

With Legal & General not being a particularly exciting stock, it may continue to go under the radar of a lot of investors. But with a PE ratio of around 11, it seems to offer good value for money.

About Robert Stephens 3630 Articles
Robert Stephens is a CFA Charterholder and an Equity Analyst by trade. He is a passionate private investor who has been buying and selling shares for many years, owning a wide range of UK shares in the process. He has written for Citywire and The Motley Fool US and now runs his own business. To contact Robert, please email info@investomania.co.uk or use one of the other contact methods available on the 'Contact Us' page