The Lloyds share price has doubled since September. Can it keep going?

first_img Enter Your Email Address Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. For shareholders of Lloyds Banking Group (LSE: LLOY), 2021 has been a much better year than 2020. The Lloyds share price has been climbing steadily since late January. In my view, there could be more to come.The Lloyds share price is on a rollThe Lloyds share price ended 2020 at 36.44p, having ridden a roller-coaster last year. By 29 January, it had declined to its 2021 closing low of 33p. That left it down almost a tenth (9.4%) since New Year’s Eve. The very next day, I said that I could see LLOY hitting 50p in 2021/22. Since then, Lloyds shares have been rising steadily — and almost in a straight line.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…On Friday, the Lloyds share price closed at 48.25p, just 1.75p below the 50p target I expected it to reach. That’s a gain of 15.25p — almost half (+46.2%) — since I said that “the Lloyds share price offers a positive skew of reward versus risk”. But, given the success of the UK’s vaccination programme, I think it might go higher.LLOY has nearly doubled from its 2020 lowOf course, 2020 was a horror show for the Lloyds share price and shareholders in the Black Horse bank. At the end of 2019, LLOY closed at 62.5p. However, as the pandemic exploded worldwide, the stock went into meltdown. At their 2020 low, the shares closed at 23.98p on 21 September. Ouch.On 24 September, with the Lloyds share price languishing at 24.58p, I said that “I still believe that this FTSE 100 survivor is cheap as chips, so I would happily buy and hold its shares today.” Since then, this FTSE 100 stock has almost doubled (+96.3%). Furthermore, Lloyds’ market value was just £17.4bn back then, prompting me to say that “I’d happily pay this sum…to buy Lloyds outright.” Today, this Big Five bank is valued at £34.2bn, so my prediction was spot on. Cliffdarcy has no position in any of the shares mentioned. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. What could drive LLOY higher in 2021/22?As one of the UK’s leading lenders, Lloyds has endured a tough 15 months. But, thanks to Covid-19 vaccines, the UK economy is expected to rebound from this summer. However, with the shares at the top of their 52-week range, what could drive LLOY higher still?I see four potentially positive drivers for the Lloyds share price. First, as a highly pro-cyclical stock, a multi-year economic boom would be great news for it (and the UK). Second, if bad debts and loan losses remain low, then the bank may release more of its huge 2020 loan-loss reserves. Third, if inflation (rising consumer prices) starts to pick up, this might mean higher interest rates. And higher rates could mean a higher NIM (net interest margin) for Lloyds. Fourth, Lloyds will pay a modest cash dividend of 0.57p a share on 25 May. But when the bank’s profits and cash flows eventually recover, this dividend could multiply.Of course, my optimistic outlook for the Lloyds share price relies on one key factor: a sustained post-Covid recovery. But if vaccination programmes are less effective than hoped, or more new Covid-19 variants emerge, then this would be a bitter blow for humankind. In this scenario, the outcome might be more infections, higher unemployment, lower consumer spending and falling corporate profits. This outcome would undoubtedly be bad news for UK share prices, especially bank stocks. Still, and on balance, I’d be happy to back Lloyds at current price levels! The Motley Fool UK’s Top Income Stock… Our 6 ‘Best Buys Now’ Shares I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. The Lloyds share price has doubled since September. Can it keep going? We think that when a company’s CEO owns 12.1% of its stock, that’s usually a very good sign.But with this opportunity it could get even better.Still only 55 years old, he sees the chance for a new “Uber-style” technology.And this is not a tiny tech startup full of empty promises.This extraordinary company is already one of the largest in its industry.Last year, revenues hit a whopping £1.132 billion.The board recently announced a 10% dividend hike.And it has been a superb Motley Fool income pick for 9 years running!But even so, we believe there could still be huge upside ahead.Clearly, this company’s founder and CEO agrees. Image: Lloyds Banking Group Simply click below to discover how you can take advantage of this. Cliff D’Arcy | Monday, 17th May, 2021 | More on: LLOY Learn how you can grab this ‘Top Income Stock’ Report now See all posts by Cliff D’Arcylast_img

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