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The ANZ Bank share price at a 52-week high: Is it a buy?

It certainly has been a rollercoaster of a ride for shareholders of the Big 4 banks this year and especially for those that own shares in Australia and New Zealand Banking Group (ASX: ANZ).

Early on in the year ANZ’s share price plunged to a three-and-a-half-year low of just $21.86 as concerns over dividend cuts, a housing market crash, its underperforming Asia segment, and misconduct from employees weighed heavily on the bank’s shares.

But since hitting that multi-year low in February the bank’s share price has staged a remarkable recovery which saw it reach a new 52-week high of $30.42 yesterday.

Incredibly this means ANZ is the best-performing share amongst the Big Four in 2016, even though it is the only one to have cut its dividend.

But after such a strong gain this year I’m starting to feel a little less bullish on ANZ now. With its shares trading on a price-to-book ratio of 1.5x, I feel its shares are fair value now.

I wouldn’t for a second suggest shareholders go out and sell their shares though. Rather I would suggest investors hold back from starting an investment in ANZ at the current price, as I’m not entirely convinced the share price will go much higher from here.

I think that anyone that wants to invest in ANZ should wait for a better entry point at around the $26 to $28 mark.

In the meantime investors looking for both growth and income could do a lot worse than an investment in either Vocus Communications Limited (ASX: VOC) or Flight Centre Travel Group Ltd (ASX: FLT).

Not only do both of these shares provide a generous yield, but they also look to be significantly undervalued in my opinion.

Alternatively investors could take a look at this fantastic high yield dividend share I'm tipping to be a HUGE winner in 2017. Over 10 consecutive years of dividend increases makes this share a must buy for investors in my opinion.

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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