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As I write, Lloyds' share price sits at 53.3p. That's a 10.9% gain from its opening price of 48.1p in 2024.
But what could the rest of the year hold for stocks?
Lloyds has performed poorly over the past five years. During that time, its share price has lost 12.7% of its value. It has regained some gains in the last 12 months. But could it hit 60p this year?
60p time?
To reach 60p, Lloyds shares would need to rise another 12.6%. If it did that, it would mean it would have risen 23.5% in 12 months. That would be awesome.
That may not be realistic. In fact, I doubt Lloyds' share price will rise above 60p this year. The one-year price target for the stock is 59p.
Gaining momentum
But while we may not see Black Horse Bank break the 60p barrier in 2024, its share price has been gaining momentum in recent months and I believe it will continue to rise in the coming months.
it seems that many FTSE 100 Banks have been held back mostly by negative sentiment recently. But that seems to be changing.
What will drive it?
But what will drive this? Well, interest rates are a factor that will play an important role.
They are a double-edged sword. On the one hand, falling rates will cause banks' margins to shrink. Lloyds has enjoyed a run of prosperity recently. Last year, its underlying net interest income rose 5% to £13.8bn. Lower rates will bring this to an end.
But on the other hand, the rate cuts should provide a boost to the broader market, which could boost the share price. I think that's part of the reason why Footsie has increased this year. Rate cuts appear imminent and investors are preparing for them. Many seem to be more bullish on UK stocks at the moment than in previous years.
Cheap value
That's why I think Lloyds appears to offer excellent value for money at just 6.9 times earnings. That's well below the Footsie average of 11. Looking ahead, that figure is forecast to fall to just over six by 2026.
Barriers to eliminate
Of course, talk of rate cuts is just speculation. And that highlights how much uncertainty there is around the economy right now. As a result, I would expect more volatility going forward with Lloyds.
Inflation appears to be under control, but we have seen signs, both in the UK and the US, that have reminded us that we are not out of the woods yet.
Cash next door
But I'm fine with some short-term peaks and troughs if I see long-term value, which I do with Lloyds. What's more, while I wait for its share price to rise, I'll happily receive the 5.2% dividend yield the stock offers investors.
A long term play
It may not be this year when we see the Lloyds share price break the 60p mark. But I am sure that will be the case in the coming years. That's why I plan to keep my shares. At its low price, I would increase my holdings if I had cash.
