Barclays’ share price has seen a modest recovery recently as UK bank stocks rebounded. The stock reached a high of 171.2p in London, its highest level since March. However, it remains around 21% below its peak this year, underperforming other banks like HSBC, Standard Chartered, UBS, and NatWest.

Barclays stands out as a unique bank compared to NatWest and Lloyds. Unlike these mostly domestic banks, Barclays operates globally, with a presence in countries such as the UK, US, India, China, and France.

Another key difference is Barclays’ wide range of services, offering both retail and investment banking. According to the Wall Street Journal, it ranks as one of the largest investment banks globally. This diversification allows Barclays to navigate various market challenges. For instance, during the pandemic, its investment banking division helped offset losses in retail banking. This year, rising interest rates have similarly helped balance the weaker performance of its investment banking sector, where deal-making has slowed, affecting firms like Goldman Sachs.

Barclays has lagged behind its peers this year in terms of performance. Its forward dividend yield is 2.52%, lower than NatWest, Lloyds, and Goldman Sachs. Additionally, Barclays’ stock is considered undervalued, with a price-to-book ratio of just 0.33x, compared to JP Morgan’s 1.3x.

A key driver for Barclays’ share price going forward is the impact of rising interest rates and the advantages of its diversified business model. The bank also has room to increase its dividend payouts.

On the daily chart, Barclays’ share price has shown a strong bullish trend in recent weeks, moving above both the 25-day and 50-day moving averages. The stock has also formed an ascending triangle pattern, a typically bullish signal.

With the awesome oscillator above neutral, Barclays’ stock is likely to continue rising, with bulls targeting the 50% retracement level at 180p. However, a drop below the support at 170p would invalidate this bullish outlook.