Are Macquarie shares a standout buy?

Macquarie Group Ltd (ASX: MQG) shares are currently trading around $257.93.

The company has just provided its first update for FY27 and announced an upcoming change of CEO.

So, do I think Macquarie shares are a standout buy today?

A solid start to FY27

Macquarie described trading conditions during the first quarter as satisfactory.

I think the individual business updates were more encouraging than that restrained description may suggest.

Banking and Financial Services increased its profit contribution compared with the same period last year. Deposits rose by 4% during the quarter, while home loans grew by 6% and business banking loans increased by 3%.

I like the progress in this division because it can give Macquarie a steadier source of earnings alongside its more market-sensitive operations.

Commodities and Global Markets also produced a substantially higher contribution. This was supported by increased activity in North American gas and power markets, as well as higher income from asset finance.

Macquarie Capital improved its contribution through stronger investment-related and brokerage income, although advisory fees were lower against a strong comparison period.

Macquarie Asset Management was the only division to report a lower contribution. This reflected the sale of its North American and European public investments business during FY26. However, assets under management increased by 4% during the quarter to $748 billion.

I think the update showed why Macquarie has been such a successful long-term investment. It has several businesses capable of finding opportunities across different market conditions.

What do I think of the CEO transition?

Shemara Wikramanayake will retire as managing director and CEO in November. Greg Ward, the current head of Banking and Financial Services, is set to succeed her, subject to the required approvals.

A leadership change of this size naturally creates some uncertainty, particularly after Wikramanayake's successful eight years as chief executive.

However, I think appointing Ward from within the company is a major positive.

Ward joined Macquarie in 1996 and served as its global chief financial officer for 14 years. He was later appointed deputy managing director before taking control of Banking and Financial Services in 2013.

I like that he already understands Macquarie's culture, approach to risk, and willingness to pursue opportunities that other financial institutions may overlook.

He has also led the repositioning of Banking and Financial Services into a much larger source of competition and innovation across personal banking, business banking, and wealth management.

I think that experience gives Macquarie a good chance of maintaining continuity while still entering its next stage of growth.

Do Macquarie shares offer value?

According to CommSec consensus estimates, Macquarie is forecast to generate earnings per share of $13.02 in FY27 and $13.38 in FY28.

At $257.93, this puts the shares on forward price-to-earnings ratios of approximately 19.8 times and 19.3 times, respectively.

I would not call that cheap, particularly when analysts are expecting relatively modest earnings growth between the two years.

However, Macquarie's earnings can move considerably depending on transactions, asset sales, commodity markets, and investment activity. I do not think one or two years of consensus forecasts capture everything the company could achieve over a longer period.

CommSec also forecasts dividends per share of $7.60 in FY27 and $8 in FY28. That represents forward dividend yields of around 2.9% and 3.1%.

The dividend is a welcome part of the return, although I would mainly buy Macquarie for its long-term earnings and capital growth potential.

Foolish takeaway

Yes, I think Macquarie shares are a standout buy for long-term investors.

The shares are not a bargain, and the current price leaves less room for disappointing results. I would still be comfortable buying because I think Macquarie has qualities that justify paying a higher valuation.

Its global reach, diverse businesses, financial strength, and ability to adapt have created opportunities across many different market cycles.

I am also encouraged by the decision to promote an experienced leader who has spent three decades inside the organisation.

At around $257.93, I think Macquarie remains one of the highest-quality ASX shares available to investors today.