Down 15% in a month! The Barclays share price looks like a screaming buy for me

The Barclays (LSE: BARC) share price has had a sensible run. Till now. It plunged 10.75% final week and is down 15.6% over the month. Have I simply been handed a sensible alternative to fill my boots?

These days, FTSE 100 banks have been flying throughout the board. Fortunately, I haven’t missed out altogether. I purchased Lloyds shares in 2023, and I’m sitting on a whole return of 150%, even after the current dip. I’m thrilled to have gotten in at a first rate valuation, with the price-to-earnings ratio solely round 5 – 6 on the time.

I’ve been determined to broaden my publicity to the large banks, which have lastly shaken off the trauma of the monetary disaster and now look in significantly better form.

FTSE 100 alternative

Barclays is true on the high of my listing. One factor has stopped me, although: the shares have simply achieved nearly too effectively. Final month they appeared absolutely valued, with the P/E nudging in direction of 15. I’m all the time cautious of shopping for into a inventory or sector after a robust run, in case I park my money simply earlier than the wheels come off.

And now they’ve. Though the dip is much from catastrophic: the Barclays share price continues to be up 31% over 12 months and 135% over 10 years. However I’m sensing my second is right here.

The current fall isn’t all about Iran. Barclays is definitely falling twice as quick because the FTSE 100, which ended final week 5.74% decrease. And the decline began even earlier than the US assaults. On 10 February, the financial institution issued what I assumed was a bumper set of full-year 2025 figures. Earnings jumped 13% to £9.1bn, the board unveiled a new £1bn share buyback, and introduced plans to return £15bn to traders over the following two years.

I’m able to buy this inventory

Earnings met excessive investor expectations, however didn’t beat them. The shares retreated. Then the Iran disaster hit, and so they fell additional. End result? The P/E is all the way down to round 9.5, and the price-to-book ratio has retreated to 0.9. Each scream worth for such a worthwhile and well-managed enterprise, in my view.

The dividend has crept as much as 2.1% on a trailing foundation. That’s low for the sector, however primarily as a result of Barclays plans to reward shareholders extra by way of buybacks. Personally, I choose dividends. However it’s removed from a dealbreaker. After all, there are dangers. JP Morgan chief Jamie Dimon warns the banking sector is uncovered to unhealthy loans amid the AI growth. Barclays has international publicity, which makes it riskier than UK-focused Lloyds, however probably extra rewarding. If the inventory market falls additional subsequent week, current proof means that Barclays might fall sooner.

With a long-term view, I feel it looks value contemplating at present. If tensions persist and the shares get even cheaper, I’ll personally discover it much more tempting. However I’ve realized the laborious means that attempting to catch absolutely the backside of the market is inconceivable. As an alternative, I’ll begin by drip feeding cash in.

On The Motley Idiot, we’re strictly banned from shopping for or promoting shares for two full buying and selling days after we write about them. When that interval ends, my finger shall be hovering over the Buy button. And there’s a few different falling FTSE 100 shares I’m itching to buy at present.