Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock characte ...

As the prospect of flood damage haunts an ever larger number of UK homes, the country’s banks are under growing pressure to prove they’re not underestimating the risk in their mortgage books.Nationwide Building Society — once seen as an outlier after saying in 2024 it had stopped making loans to some homes at risk of flooding — has emerged as a prescient first-mover amid growing banker anxiety, according to Mark Cunningham, managing director at PriceHubble, a property data company. The risk is that a bank i ...

Core Viewpoint - Lloyds share price has experienced a significant correction, dropping from a year-to-date high of 114.70p on February 4 to the current level of 100p, which is near its lowest since January 12 [1] Company Summary - The share price decline reflects broader market trends and investor sentiment, indicating potential challenges for Lloyds in maintaining its previous high valuations [1]

Financial Performance and Reporting - The Company received $1,841,816 in fees from the depositary for annual stock exchange listing fees and maintenance costs related to the ADSs in 2025[241]. - Deloitte LLP issued an unqualified opinion on the Company's consolidated financial statements for the year ended December 31, 2025[258]. - The Company has not experienced any defaults, dividend arrearages, or delinquencies during the reporting period[243]. Internal Control and Governance - As of December 31, 2025, the Company's internal control over financial reporting was assessed as effective based on COSO criteria[254]. - There have been no changes in the Company's internal control over financial reporting that materially affected its effectiveness during 2025[251]. - The Company’s internal control over financial reporting includes policies ensuring accurate record maintenance and timely detection of unauthorized asset use[253]. - The Company’s disclosure controls and procedures were deemed effective for gathering and analyzing required information as of December 31, 2025[250]. Corporate Governance - The Board is committed to high standards of corporate governance, complying with the UK Corporate Governance Code throughout 2025[247]. - The Audit Committee financial expert is Sarah Legg, with all members qualifying as independent under applicable standards[264]. Reimbursement and Expenses - The depositary has agreed to reimburse the Company for maintenance expenses incurred for the ADS program, including costs for mailing financial reports and distributing dividends[242].

Group 1 - Lloyds Banking plans to increase its lending to large corporate clients as part of a strategic update [1] - The bank aims to expand its offerings to financial institutions, indicating a shift in focus towards larger clients [1]

Core Viewpoint - Deutsche Bank has reaffirmed its "Buy" rating for Lloyds Banking Group, raising its price target from 110 GBp to 125 GBp, indicating strong confidence in the bank's future performance [1][6] Group 1: Financial Performance and Projections - Lloyds is projected to experience a peak growth in tangible net asset value (TNAV) and distributions of 17% in 2026, positioning it as a top performer among European banks [2][6] - The return on tangible equity for Lloyds is expected to improve significantly, driven by operational leverage and a favorable cost environment, suggesting strong future growth and profitability [3][6] Group 2: Market Position and Investor Sentiment - Currently, Lloyds' stock is priced at $6.17, reflecting a slight decrease of 0.08%, with a yearly high of $6.25 and a low of $3.02, indicating significant growth potential [4] - Lloyds has a substantial market capitalization of approximately $90.75 billion, with a trading volume of 6,649,595 shares, reflecting strong investor interest and confidence in its future performance [5]

Financial Performance - Lloyds Banking Group plc reported an underlying net interest income of £13.6 billion for 2025, reflecting a 6% increase compared to 2024, with a banking net interest margin of 3.06%, up 11 basis points year-on-year [2] - The company announced £1.4 billion of annualised additional revenues from strategic initiatives in 2025, with management confident in delivering approximately £2 billion by the end of 2026, surpassing the previous target of £1.5 billion [1] Technological Advancements - The implementation of GenAI contributed around £50 million of value in 2025, with expectations of over £100 million in additional value in 2026 through the scaling of both agentic AI and GenAI across the Group [3] Business Segments - Lloyds Banking Group operates in various segments, including Retail, Commercial Banking, Insurance and Wealth, and Other [4]

Core Viewpoint - The article discusses the best undervalued stocks to buy under $10, highlighting the potential for investment opportunities in this price range. Group 1: Market Insights - Goldman Sachs' Ben Snider expects the broadening of equity market returns to continue, indicating a different perspective on US equities compared to other markets [2][3] - The S&P 500 generated a total return of 18% last year, which was considered extraordinary, yet it was one of the worst-performing global markets [2] - Snider anticipates continued diversification in equity market returns, suggesting that US equities can still perform well [3] Group 2: AI Trade and Earnings - The focus for the market this year is on visible near-term earnings, particularly in the context of the AI trade [4] - Infrastructure spending has been a key driver of the AI trade due to visible earnings, but trends are shifting as companies outside the tech sector begin to show earnings accretion from AI [4] Group 3: Methodology for Stock Selection - The article outlines a methodology using stock screeners to identify companies with specific criteria, including a stock price below $10 and a forward P/E below 15 [9] - The top 10 stocks were selected based on the highest number of hedge fund holders as of Q3 2025, with data sourced from Insider Monkey's database [7] Group 4: Company Highlights - **Lloyds Banking Group plc (NYSE:LYG)**: - Reported £1.4 billion of annualized additional revenues from strategic initiatives in 2025, with management confident in reaching £2 billion by the end of 2026 [10][11] - Underlying net interest income was £13.6 billion, up 6% from 2024, with a banking net interest margin of 3.06% [11] - GenAI delivered around £50 million of value in 2025, with expectations of over £100 million in 2026 [12] - **Aegon Ltd. (NYSE:AEG)**: - Received multiple rating updates in January, with a Buy rating and a price target of €7.40 from Berenger Bank [14] - Aegon UK plans to expand access to private market assets for over 375,000 members of its second-largest workplace default fund [15][16] - The initiative will invest across various asset classes, building on previous successful integrations of private markets [16][17]

Group 1 - Lloyds Banking Group experienced a significant re-rate in 2025, leading to share prices reaching levels not seen since the 2008 financial crisis [1] - The company is favored for a long-term, buy-and-hold investment strategy, particularly in the dividend and income sectors [1] Group 2 - The article reflects the author's personal opinions and does not represent any business relationship with companies mentioned [2] - There is a disclosure regarding the author's beneficial long position in Lloyds Banking Group shares [2]

Core Insights - Lloyds Banking Group reported a strong financial performance for 2025, with net income of GBP 18.3 billion, a 7% increase from 2024, and statutory profit after tax of GBP 4.8 billion, resulting in a return on tangible equity (RoTE) of 12.9% [3][7][18] - The company announced a 15% increase in its ordinary dividend and a share buyback of up to GBP 1.75 billion, bringing total shareholder distributions for the year to up to GBP 3.9 billion, approximately 6% of its market capitalization [1][4][7] - Lloyds upgraded its 2026 targets, expecting to achieve a RoTE greater than 16% and net interest income (NII) of around GBP 14.9 billion, supported by balance sheet growth and margin expansion [6][18] Financial Performance - The group reported a tangible net asset value per share of 57 pence, an increase of 4.6 pence in 2025 [2] - Operating costs for 2025 were GBP 9.76 billion, reflecting a 3% year-on-year increase, with a cost-income ratio of 58.6% [5][15] - NII for 2025 was GBP 13.6 billion, up 6%, with a net interest margin of 3.06%, an increase of 11 basis points [10][18] Strategic Initiatives - Lloyds generated GBP 1.4 billion of additional revenues from strategic initiatives and upgraded its 2026 target for other operating income (OOI) to around GBP 2 billion [13] - The company integrated the acquisition of Schroders Personal Wealth, expected to contribute around GBP 175 million of incremental income in 2026 [14] - The digital and AI program is expected to deliver over GBP 100 million of P&L benefit in 2026, with 50 generative AI use cases scaled into production in 2025 [17] Balance Sheet and Growth - Lending balances grew to GBP 481 billion, a 5% increase, while total deposits rose to GBP 496.5 billion, up 3% [6][9] - The structural hedge notional stood at GBP 244 billion at year-end, with hedge income expected to rise from GBP 5.5 billion in 2025 to around GBP 7 billion in 2026 [11][12] - The company expects an asset quality ratio around 25 basis points in 2026, with a 2025 impairment charge of GBP 795 million [18] Capital Management - Capital generation in 2025 was 147 basis points, with a year-end CET1 ratio of 13.2% [19] - Lloyds reiterated its target of around 13% CET1 by the end of 2026 and plans to consider excess capital distributions every half year [19]