After getting hammered in the wake of the Federal Budget release, Commonwealth Bank of Australia (ASX: CBA) shares have staged a strong comeback.
If you own the big four S&P/ASX 200 Index (ASX: XJO) bank stock, you'll likely remember the 10.4% share price crash suffered on 13 May.
That historic selling pressure followed CBA's own March quarter (Q3 FY 2026) update, which coincided with numerous analyst forecasts of the potential negative impacts the Federal budget could have on CommBank's loan book.
But since market close on 13 May, CBA shares have gained 7.11%, closing on Monday trading for $164.60 apiece.
For some context, the ASX 200 has gained 0.71% over this same period.
And looking ahead, Investor Pulse's Mark Elzayed believes that Australia's biggest bank could continue to outshine the wider market (courtesy of The Bull).
Here's why.
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Should you buy CBA shares today?
"CBA remains Australia's dominant retail bank," Elzayed noted.
Citing the first reason you might want to buy CBA shares today, he said, "The recent sharp sell-off has created a more attractive entry point for long term investors."
Indeed, despite the sizeable rebound since the recent closing low on 13 May, CBA shares remain down 5% over the past 12 months. And shares in the ASX 200 bank stock are still down 14% since hitting their all-time closing highs of $191.40 apiece on 25 June.
But, as Elzayed, noted, profits are still rolling in.
"The bank generated unaudited cash net profit after tax of $2.7 billion in the third quarter of fiscal year 2026, up 4% on the prior corresponding period," he said, citing the second reason he's bullish on the big four bank.
As for the third reason the bank stock could outperform, Elzayed said, "Lending and deposits continued to grow despite a softer economic backdrop."
At its recent Q3 results, CBA reported:
Home loan new funding remained strong with $45 billion funded in the quarter. For the 12 months to March 2026, home loan balances grew $41 billion at 1.0x system, while household deposits grew $38 billion at 1.1x system.
Which brings us to the fourth reason you may wish to buy CBA shares today, namely the bank's solid risk profile and reliable passive income.
"CBA also maintains strong capital levels and recently paid a fully franked interim dividend of $2.35 a share for the first half of fiscal year 2026," Elzayed said.
Summing up his bullish outlook on CommBank shares, he concluded, "The shares fell heavily following housing concerns flowing from the Federal Budget. We see scope for a recovery once sentiment stabilises."
