Is the ANZ share price a buy?

Is the Australia and New Zealand Banking Group (ASX:ANZ) share price a buy during the coronavirus outbreak?

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Is the Australia and New Zealand Banking Group (ASX: ANZ) share price a buy during this coronavirus outbreak?

The ANZ share price is likely to be a big mover today after the latest share market plunge in the US. The American share market was reacting to the decision to ban all travel with Europe for 30 days.

Before today's share price movements, it had dropped by 33% since 21 February 2020. Ouch!

Investors are worried that businesses across Australia will see less cashflow and therefore be unable to make their loan repayments to banks like ANZ.

The thing is, ANZ's share price is already at levels we saw during the GFC. Things could definitely get bad for ANZ and the economy, but investors also have a habit of overselling – which is why banks recovered so strongly during 2009.

Will today be the bottom of ANZ's share price fall? I doubt it, but it's impossible know what share prices will do. With share markets getting close to a 30% fall, you'd think there can't be that much more to fall unless another GFC is in the works.

Only time will tell whether ANZ's share price today is a huge bargain or about right for what may happen in the rest of the year. It will depend how Australian businesses perform and how Australian house prices go. We don't know yet. 

If this passes quite quickly then ANZ's share price under $18 could be a steal. However, banks are some of worst hit during an actual painful downturn.

Foolish takeaway

At some point ANZ's share price will become so low that it may be too good value to miss. It's not there yet for my own portfolio, but I can understand if optimistic investors want to go for it today.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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