Commonwealth Bank of Australia’s (ASX: CBA) miraculous recovery continued in fine form on Monday when the stock jumped 1.6%, representing a $1.25 gain and putting Australia’s largest bank back above the $80 mark.
Since dipping as low as $73.57 a fortnight ago, the stock has played a key role in driving the Australian stock market higher. Now trading at $80.02, CommBank has risen 8.8% while the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) has jumped 6.4% in that time. Not bad for a market which so many investors presumed was destined for a major failure…
With Commonwealth Bank back on the winner’s list, investors are understandably wondering whether it will stay that way – whether more juice can be squeezed from Australia’s largest bank. Of course, it’s shown plenty of promise in the last couple of weeks, and it may just have another 4.9% left in it to surpass its previous all-time high near $84, which it set in July this year.
But investors shouldn’t get too carried away. While it is very possible that the bank’s shares could continue to rise in the near-term, they are very expensive and face a number of strong headwinds which could seriously stunt their earnings growth over the coming years.
Where to 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 are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned.
- Coronavirus (COVID-19): 6 charts every Australian needs to see – April 6, 2020 1:46pm
- Innovation through crisis – April 2, 2020 11:48am
- Coronavirus (Covid-19): Why Is Italy’s Fatality Rate So Bad? – March 26, 2020 3:39pm