The Suncorp share price is on fire today. Should you buy?

Suncorp is the third-best performer in the ASX 200 today.

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Key points
  • The Suncorp share price is on a roll today, up 3.5% in late afternoon trading to $12.34 per share
  • The Suncorp share price reached an intraday high of $12.42 earlier today
  • Suncorp will release its half-year results on 8 February

The Suncorp Group Ltd (ASX: SUN) share price is on a roll today, up 3.5% in late afternoon trading to $12.34 per share.

In fact, the Suncorp share price is today's third-best performer among the S&P/ASX 200 Index (ASX: XJO).

It's been a good day for ASX bank shares, with the big four and Macquarie Group Ltd (ASX: MQG) all in the green. This may be related to today's weaker-than-expected jobs report, which could signal the economy is slowing in response to the Reserve Bank's rapid 3% increase in the cash rate last year.

This could mean interest rates may not rise as high as previously thought — and the share market is liking that prospect. The ASX 200 is up 0.6% presently to 7,438 points.

A woman sits at her computer with her hand to her mouth and a contemplative smile on her face as she reads about the performance of Allkem shares on her computer

Image source: Getty Images

What's the latest with the Suncorp share price?

As my Fool colleague Brooke recently reported, the Suncorp share price outperformed most other ASX 200 bank shares in 2022.

The stock rose from $11.07 to $12.04 – or 8.8% – over the year. That compares to a 5.5% fall in the ASX 200 and an almost 3% fall in the S&P/ASX 200 Financials Index (ASX: XFJ).

Of course, soon enough Suncorp will no longer be a bank share given it is in the process of selling its banking division to ANZ Group Holdings Ltd (ASX: ANZ).

Earnings season is upon us once again, and Suncorp will release its half-year results on 8 February. The ex-dividend date will be 14 February and the payment date will be 31 March.

As reported in the Australian Financial Review today, Morgan Stanley has upgraded its rating on Suncorp to overweight. The broker has a 12-month share price target of $14.50 on the insurance giant.

At today's share price, a few brokers see a lot of value in Suncorp for dividends this year.

IML portfolio manager Michael O'Neill projects a forward 6.8% dividend yield for Suncorp in FY24. He says the stock is currently trading on a 12.1 times price-to-earnings (P/E) ratio.

At the end of 2022, Morgans had an add rating on Suncorp shares with a $13.98 price target. The broker foresees an 80-cent dividend from Suncorp in FY24 — a yield of 6.5% on today's share price.

Suncorp share price snapshot

The Suncorp share price reached an intraday high of $12.42 earlier today.

The stock is up by 5.65% over the past 12 months compared to a 1.4% increase in the ASX 200.

It's had a great start to 2023, up 4.4% since 3 January.

Motley Fool contributor Bronwyn Allen has positions in Anz Group and Macquarie Group. 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 recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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