Westpac the 'weakest' of the major banking shares, says expert

Westpac is set to report its full-year FY23 earnings and final dividend on Monday.

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Westpac Banking Corp (ASX: WBC) shares are up 1.32%, in line with the broader market on Friday.

The Westpac share price is currently $21.45 amid the S&P/ASX 200 Index (ASX: XJO) rising 1.11%.

The ASX bank share has risen by about 5% this week.

News of a strategic acquisition on Wednesday gave Westpac shares an extra boost, leading to a five-day outperformance against its 'big four' rivals.

But Michael Gable of Fairmont Equities is less than impressed with the ASX bank share.

Westpac shares 'vulnerable to long-term downtrend'

Gable notes that a recent rally in the Westpac share price failed to push it above its long-term trend line.

On The Bull, Gable commented:

WBC is the weakest of the major banks, in our view.

In terms of share price action, it recently rallied to below its long-term downtrend line before retreating again.

In our view, the stock is vulnerable to maintaining its long-term downtrend, particularly after the company soon declares its final dividend.

Westpac is set to declare that next dividend on Monday alongside its full-year FY23 results.

Top broker Goldman Sachs is tipping a final dividend of 70 cents per share.

As my Fool colleague James reports, Goldman is expecting Westpac to report cash earnings of $3,054 million for 2Q FY23. That would be 40% higher than 2Q FY22 but 25% lower than 1Q FY23.

It would also be 11.4% short of the consensus estimate of $3,446 million.

If Westpac does better than this, then its stock could experience a lift on Monday.

Motley Fool contributor Bronwyn Allen has positions in Westpac Banking Corporation. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. 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 Scott Phillips.

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