In morning trade the Australia and New Zealand Banking Group (ASX: ANZ) share price has followed the lead of the market and dropped almost 1% lower to $25.98.
Despite this the banking giant's shares have gained 6.2% since this time last month, compared to a gain of 4.5% for the ASX 200.
Is it too late to buy ANZ shares?
Although the banking giant's shares have outperformed the market this year, I don't believe it is too late to pick up shares.
In fact, I think that ANZ shares are still trading at a level that could be considered cheap. At just 11x estimated FY 2019 cash earnings and 1.3x book value, ANZ's shares are trading on lower than average historical multiples.
Another big positive in my eyes is the fact that its shares offer a trailing fully franked 6.1% dividend at present. While this isn't quite as big as the dividend yields available with National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp (ASX: WBC) shares, it is still significantly higher than the market average of approximately 4%.
But why ANZ?
With all the banks arguably in the buy zone right now, why should you buy ANZ shares?
For me, I think ANZ is the best bank to buy due to it being the best positioned major bank to face into the sector's slowing revenue environment.
This is largely due to its lower bad and doubtful debts and exposure to the business lending market which has been a major highlight in the current financial year. I expect this to lead to earnings and dividend growth in FY 2019.
Should you buy shares this week?
Whilst I'm optimistic that the worst-case scenario from the Royal Commission final report has already been factored into its share price, it might be prudent to wait for the report to be handed down on Friday before buying shares, just in case there are any nasty surprises included in it.
