European Equity Factor Insights: Value delivers as Momentum cracks

研报英文原文证据摘录

European Equity Factor Insights: Value delivers as Momentum cracks

Equity Research

Equity Strategy

14 July 2026

European Equity Factor Insights

Value delivers as Momentum SIGNATURE

cracks

Momo sell-off deepens as leadership broadens. Value sits in

European Equity Strategy

the sweet spot as key rotation beneficiary, backed by Emmanuel Makonga

improving earnings and higher-rate backdrop. US CPI and Q2 +44 (0)20 7773 2593 emmanuel.makonga@barclays.com

earnings are key catalysts for Value to extend leadership. Stay Barclays, UK

Positive Value; Neutral Momentum as unwind risk persists. Emmanuel Cau, CFA

+44 (0)20 3134 0475

emmanuel.cau@barclays.com

Europe factor analysis and views: July 2026 Barclays, UK

Please register here to join our conference call on the EU factors update on Tuesday, 14 Jul. Magesh Kumar Chandrasekaran, CFA

+44 (0)20 3134 5983

Please note: our updated basket constituents are available here – Barclays Equity Factor Monitor,

magesh.kumarchandrasekaran@barclays.com

2 Jul. Barclays, UK

Key insights Arihanth Bohra Jain

+91 (0)22 6175 1406

• Momentum leadership on hold. Momentum unwind gathering pace, with the drawdown arihanth.bohrajain@barclays.com

ranking among the deepest since 2001. Crowding in High Momentum has reset, but history Barclays, UK

suggests major unwind episodes typically continue for several weeks after de-crowding

troughs, leaving earnings season as the key catalyst for Momentum leadership to reassert

itself. Stay with Value until the washout runs its course.

• Value in the sweet spot. Value is getting supported by fundamentals, not just benefiting

from the Momentum unwind. Improving earnings momentum among the cheapest stocks,

combined with a supportive rates backdrop, keeps the bullish case intact. We stay OW Value