Should you buy Australia and New Zealand Banking Group shares?

I think it is fair to say that the last six months have been reasonably disappointing for the Australia and New Zealand Banking Group (ASX: ANZ) share price.

During this time the banking giant’s shares have lost almost 7% of their value.

Does this put ANZ Bank’s shares in the buy zone?

Whilst I wouldn’t necessarily sell its shares if I owned them, I’m not a buyer at the current share price despite this decline.

In my opinion, ANZ Bank’s shares would have to fall towards the $27.00 level before I backed up the truck. At that price I believe they would provide investors with both value and income and a compelling risk/reward.

I’m not alone in this view. As I mentioned last week, Morgan Stanley recently downgraded the banking giant’s shares to an equal-weight rating, which is essentially the equivalent of a hold or neutral rating.

The broker also reduced its price target on ANZ Bank’s shares to $29.00. Which based on the current share price implies potential downside in the region of 3.2%

Analysts at the investment bank downgraded the bank due to concerns over its ability to recover revenue and its belief that ANZ Bank’s loan loss versus normalised loss rates are far greater than the rest of the big four banks.

Which bank shares should you buy?

Although it isn’t as much of a bargain buy as it was a few months ago, I still see a lot of value in Westpac Banking Corp (ASX: WBC).

Of all the big four, I think it provides investors with the best value for money given its solid business and equally solid outlook.

But if you already own the banks, then check out these top five dividend shares instead.

Rich listers know the power of dividend shares!

In FY 2018 share market investors are staring down the barrel of ballooning global debt and potential geopolitical powder keg. But thankfully one Foolish expert is revealing 5 of his favorite dividend payers for wealth-creating income whatever the global weather...

But you must act now. This updated report is available for a limited time only, and your copy is 100% free. So don't miss out!

Simply click here to receive your free copy of "Our Top 5 ASX Dividend Shares to Earn You Money in 2018" right now.

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. 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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.