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….

| More on:
red arrow representing a rise of the share price with a man wearing a cape holding it at the top

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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%.

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.

More on Bank Shares

A corporate female wearing glasses looks intently at a virtual reality screen with shapes and lights representing Block shares going up today
Bank Shares

Are Westpac shares a buy following the bank's big tech update?

Is now a good time to buy the banking giant's shares? Let's find out.

Read more »

Different Australian dollar notes in the palm of two hands, symbolising dividends.
Bank Shares

Own CBA shares? It's payday for you!

A dividend is heading to CBA shareholders’ bank accounts.

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Bank Shares

Are CBA shares really worth $120?

It has been a good year for ASX bank shareholders.

Read more »

a group of people sit around a computer in an office environment.
Bank Shares

Westpac shares push higher on $9.8b technology simplification plan

Westpac plans to spend big on technology to close the gap on its rivals.

Read more »

A worried woman looks at her phone and laptop, seeking ways to tighten her belt against inflation.
Economy

NAB boss issues dire prediction for Aussie economy

NAB’s CEO has issued a stark warning on the outlook for Australia’s economic growth.

Read more »

Contented looking man leans back in his chair at his desk and smiles.
Bank Shares

Own CBA shares? Here's the tech stock the banking giant just invested in

CBA has made an interesting investment. Here's what you need to know.

Read more »

A woman gives two fist pumps with a big smile as she learns of her windfall, sitting at her desk.
Bank Shares

ANZ shares charge higher on $57.5 million class action settlement news

ANZ shares have continued their positive run on Monday.

Read more »

Two people comparing and analysing material.
Bank Shares

Better buy: CBA or Westpac stock?

Which ASX bank share is a better buy?

Read more »