Westpac (ASX:WBC) just made a new high! Could it still be a buy today?

Westpac shares have just hit a new 52-week high….
The post Westpac (ASX:WBC) just made a new high! Could it still be a buy today? appeared first on The Motley Fool Australia. –

The Westpac Banking Corp (ASX: WBC) share price is having another strong day today. At the time of writing, Westpac shares are up a healthy 1.85% to $27.04 a share. Earlier in the trading day, the ASX bank was doing even better, reaching a new 52-week high of $27.12 a share. Today’s gains put Westpac up 6.75% over the past month, 37.75% year to date, and a rewarding 49% over the past 12 months.

In saying that, these gains aren’t enough to make up for Westpac’s longer-term performance. Over the past 5 years, the banking giant is still down 5.7%, and it still remains around 30% off of its all-time high of nearly $40 a share that we saw way back in 2015.

Still, it has still been an unquestionably strong year for Westpac shareholders. As it has been for most of the ASX banks. Commonwealth Bank of Australia (ASX: CBA) has fared even better than Westpac. It’s also up today (1.12%) and actually hit yet another all-time (not 52-week) high of $106.57 just after midday today. CBA shares are now up 52.3% over the past year.

But back to Westpac. Well, as an ASX bank, Westpac’s fortunes are closely tied to the broader Australian economy (more so than most ASX shares). As such, it’s possible that Westpac shares are feeling the love from the rebounding Australian economy.

The ‘economic recovery’ narrative was bolstered further just this morning, with the release of the ABS’s unemployment data for May this morning. The ABS data showed Australian unemployment falling to below pre-COVID levels, an arguable sign that the economy is going from strength to strength. This could possibly be feeding into the Westpac share price’s new highs today.

Could Westpac shares be a buy today?

So with Westpac at a new 52-week high today, could this ASX bank be a buy? Well, one broker who thinks so is the investment bank, Goldman Sachs. Goldman has rated Westpac as a buy, with a 12-month price target of $29.03. Goldman reckons Westpac shares are still cheap and thinks the bank will be able to grow its earnings nicely over the next few years thanks to its large capital base.

On the current Westpac share price, the ASX bank has a market capitalisation of $99.24 billion, a price-to-earnings (P/E) ratio of 23.15 and a trailing dividend yield of 3.29%.

The post Westpac (ASX:WBC) just made a new high! Could it still be a buy today? appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

Commonwealth Bank (ASX:CBA) share price hits new record despite money laundering scandal
Is Westpac’s (ASX:WBC) life insurance approaching its sell-by date?
ASX 200 Weekly Wrap: ASX edges even higher, led by tech rebound

Why Westpac (ASX:WBC) and this ASX 200 share are smashing the market in 2021
2 blue chip ASX shares that could be buys in June

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!