The Commonwealth Bank of Australia (ASX: CBA) share price has remained somewhat resilient over the last two months, even rising from roughly $70 a share to a high of $81.88 earlier this week.
Unfortunately, the shares have been sold off rather heavily today with the bank's share price down 2.2%, compared to a 1.9% decline for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO). The shares are now trading below the $80 mark at $79.71.
Should you buy?
Many investors would be tempted to buy shares of Commonwealth Bank at their current price, especially considering they're also offering a 5.2% fully franked dividend (grossed to 7.5%).
Although the shares remain well below their high of around $96 earlier this year, Commonwealth Bank could still be a risky buy today.
To begin with, earnings growth across the sector is widely expected to slow considerably over the coming years as house prices cool and competition for new customers intensifies. Meanwhile, tougher regulations could impact the banks' returns on equity and could even force them to scale back dividends, or at least slow their growth.
Indeed, Commonwealth Bank remains one of Australia's strongest and most important corporations and will be around for a very, very long time. But considering those factors mentioned above, the shares don't seem like a great buy at today's price.
Sure, the bank's share price could rise from here, but I believe there are far better opportunities out there to take advantage of instead.
