Is the Lloyds Banking Group PLC share price a FTSE 100 bargain?
There is significant political risk facing the UK at the moment, with the prospect of a change in Prime Minister or even a general election in future months. As a company that is focused on the UK, this could impact on investor sentiment. Therefore, in spite of delivering impressive performance in 2019, I wouldn’t be surprised if there is a pullback in the bank’s share price. That said, I still think that Lloyds offers good value for money at the moment. Clearly, though, Lloyds is likely to be impacted by the prospects for the UK economy. Although I think that there could be challenges in the near term, I feel optimistic about the long-term outlook for the economy. With Lloyds having a relatively low cost:income ratio and being set to benefit from factors such as the end of new PPI claims this year, I feel that it could have a brighter future than the stock market is pricing in. Therefore, I believe it could offer good value for money, and may deliver relatively strong share price performance over the long run. "