National Australia Bank Ltd (ASX: NAB) shares hit a record high yesterday. That kind of price action tells you one thing very clearly: the market is feeling confident.
And while I can understand why investors are drawn to banks, especially when they are performing well, I personally think NAB shares are now fully valued at these levels. Expectations are high, the sector is competitive, and after a strong run, I suspect a fair amount of good news is already reflected in the share price.
If I were putting fresh money to work today, I would be looking elsewhere. In particular, I would focus on a handful of high-quality Aussie blue chips that, in my view, offer stronger long-term upside from here.
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Macquarie Group Ltd (ASX: MQG)
If I want exposure to financial services, I would look at Macquarie.
Macquarie is not just a lender. It is a global asset manager, infrastructure investor, and advisory powerhouse with diversified earnings streams. I think that flexibility matters. It allows the group to benefit from market volatility, capital markets activity, and structural trends like the energy transition.
Unlike NAB, Macquarie is less tied to the Australian housing market. That gives it a different risk profile and, in my view, a more attractive growth runway over time. When I think about long-term compounding, Macquarie stands out as a business with genuine global scale and ambition.
Sigma Healthcare Ltd (ASX: SIG)
Sigma is no longer just a pharmaceutical wholesaler. With its merger with Chemist Warehouse, the investment case has fundamentally changed.
Instead of relying purely on wholesale margins, Sigma now has exposure to one of Australia's most dominant pharmacy retail brands. Chemist Warehouse brings scale, brand power, and strong customer traffic, giving Sigma a much broader earnings base across both wholesale and retail.
I think that vertical integration is important. It strengthens bargaining power, improves supply chain efficiency, and gives the combined group greater influence across the pharmacy ecosystem. It also adds a growth layer that the old Sigma simply did not have.
For me, this makes Sigma a far more compelling long-term holding than it once was. It blends defensive healthcare demand with retail scale, which I believe gives it stronger earnings resilience and expansion potential than many investors may still appreciate.
Amcor plc (ASX: AMC)
Amcor has also reshaped its growth profile through its acquisition of Berry Global.
Packaging is already a defensive industry, but the addition of Berry Global expands Amcor's global footprint, product range, and scale advantages. Greater scale in this sector matters. It can enhance pricing power, drive cost efficiencies, and deepen relationships with multinational customers.
To me, the enlarged Amcor looks even more like a global packaging heavyweight. It combines steady demand from food, beverage, healthcare, and consumer goods markets with increased operational leverage from integration benefits.
While NAB is trading at a record high and looks fully valued in my view, Amcor is well off its highs and offers global diversification, defensive revenue streams, and now even greater scale following the Berry deal. That balance appeals to me as a long-term compounding story.
Foolish Takeaway
NAB is a high-quality bank. I am not arguing otherwise. But at a record high, I think it now looks fully valued.
Rather than chase momentum, I would prefer to spread my capital across diversified leaders like Macquarie, Sigma Healthcare, and Amcor. In my view, they offer a better balance of growth, resilience, and long-term compounding potential from here.
