Royal Bank of Scotland parent NatWest Group is in a buy zone above a flat base's buy point of 14.55. The rising relative strength line seen on IBD MarketSurge shows that shares of the bank stock are outperforming the S&P 500 as they hover in buy range.
Shares rebounded from their 50-day moving average after the company reported its June-quarter results on July 25 and rallied. The bank stock is Thursday's selection for IBD 50 Stocks To Watch.
Shares are in an early-stage base that can net higher gains than later-stage bases. They are also in a base-on-base pattern that stretches back to May 2024.
Earnings grew 33% to 24 cents per share in the second quarter, and revenue increased 10% to $1 billion.
NatWest ranks first in the banks-money center group, according to IBD Stock Checkup. The group holds 50th place among Investor's Business Daily's 197 industry groups. Revenue growth has been steady, ranging between 5% and 78% over the past eight quarters. Earnings growth has been more mixed, but the company reported higher profit in the past two quarters.
Bank Stock Scores An Ideal EPS Rating
NatWest is a holding company and the parent of the Royal Bank of Scotland, Ulster Bank, and others. It operates retail and commercial banking services while also supporting institutional and private banking companies.
Shares are at levels last seen in 2011. Meanwhile, analysts have revised their profit estimates higher and expect 2025 earnings of $1.60 per share, or a 128% increase. For 2026, consensus estimates project a 12% earnings increase to $1.79 per share.
The stock holds a Composite Rating of 97 out of 99 while its Earnings Per Share Rating is an ideal 99. Shares have also outperformed 91% of other stocks in the Investor's Business Daily database.
Though NatWest's Accumulation/Distribution Rating of D+ shows that mutual funds have not been buying the stock over the past 13 weeks, more funds have added the stock over the past two quarters. Demand for the stock is also running high, going by its Up/Down Volume Ratio of 1.2.
NatWest shares trade on the London Stock Exchange while its American Depository Receipts trade on the New York Stock Exchange.
Please follow VRamakrishnan on X/Twitter for more news on the stock market today.
