Skip to main content

Barclays Chooses Ford, GM, Halliburton, for Value & Growth

It also cites Southwest Airlines and UnitedHealth for providing both growth and value investing characteristics.
  • Author:
  • Publish date:

Barclays has compiled a list of five stocks that it says provide investors growth and value: Ford Motor  (F) - Get Free Report, General Motors  (GM) - Get Free Report, Halliburton  (HAL) - Get Free Report, Southwest Airlines  (LUV) - Get Free Report and UnitedHealth  (UNH) - Get Free Report.

Barclays calls the strategy: “growth at a reasonable price,” CNBC reports. Barclays scoured S&P 500 stocks for which it has overweight ratings.

To catch growth, Barclays looked at its estimates for their two-year revenue compounded-annual-growth rate for S&P 500 stocks. Barclays looked at only the top 25% of the index.

To get value, Barclays deployed its 2023 price-to-sales estimates. There, Barclays looked at only the bottom 25% of the S&P 500.

Barclays declined to share details of the report.

As for GM, it recently traded at $55.30, up 2%. Morningstar analyst David Whiston puts fair value at $68.

“We think General Motors' vehicles are of the best quality and design in decades,” he wrote last month.

“The company is already a leader in trucks, so a competitive lineup in all segments, combined with a much smaller cost base, says to us that GM is starting to realize the scale to match its size.

“The head of Consumer Reports automotive testing even said Toyota and Honda could learn from the Chevrolet Malibu.

“We think GM's earnings potential is excellent because the company has a healthy North American unit and a nearly mature finance arm with GM Financial.

“ Moving hourly workers' retiree healthcare to a separate fund and closing plants have drastically lowered GM North America's break-even point to U.S. industry sales of about 10 million-11 million vehicles, assuming 18%-19% share.”