Westpac Banking Corp (ASX: WBC) shares are pushing higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock closed yesterday trading for $34.31. In early afternoon trade on Tuesday, shares are changing hands for $34.35, up 0.1%.
This sees shares in the big four Aussie bank up 21.9% since this time last year. That's well ahead of the 13.4% gains posted by the ASX 200 over this same period.
And this doesn't include the $1.52 a share in fully franked dividends Westpac paid to eligible stockholders over the year.
Which brings us back to our headline question. With the bank reporting its third quarter (Q3 FU 2025) results this Thursday, 14 August, should you buy Westpac shares today?
Image source: Getty Images
Westpac shares: Buy, hold, or sell?
Shaw and Partners' Jed Richards recently ran his slide rule across the big four bank (courtesy of The Bull).
"Westpac remains a solid hold due to its defensive nature and attractive dividend yield," said Richards, who indeed has a hold recommendation on Westpac shares.
As for that attractive passive income, Westpac stock currently trades on a fully franked 4.4% trailing dividend yield.
Richards added:
The bank benefits from a stable interest rate environment and a reasonable price/earnings ratio, suggesting a fair valuation. Its diversified lending portfolio and strong capital position support consistent earnings.
Westpac shares trade on a price to earnings (P/E) ratio of just over 17 times. That's well below the just over 30 times P/E ratio that major rival Commonwealth Bank of Australia (ASX: CBA) shares trade at.
Connecting the dots, Richards concluded:
While growth may be modest, WBC offers reliability and income, making it suitable for conservative investors. Regulatory stability and a steady economic outlook reinforce its position as a dependable core holding.
What's the latest from the ASX 200 bank stock?
The last price-sensitive news for Westpac shares was back on 5 May when the bank reported its half-year results (H1 FY 2025).
On the bottom line, Westpac achieved a net profit of $3.32 billion. That was down 9% on the prior period. Excluding notable items, however, Westpac's net profit decreased by a lesser 4% over the six months.
Westpac CEO Anthony Miller said the first-half result "demonstrates our achievements and ensures we are ready for the challenges ahead. Westpac's very strong balance sheet is important given global uncertainty".
He added, "This result confirms Westpac's strong position. We are growing in the areas we're targeting and supporting customers through uncertain times."
Likely with an eye on those slipping profits, however, investors sent Westpac shares down 3.0% on the day the bank reported.
