Is the NAB share price a buy today?

The National Australia Bank Ltd (ASX: NAB) share price is down 40 percent this year, but is the ASX bank share in the buy zone yet?

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It's fair to say the National Australia Bank Ltd (ASX: NAB) share price hasn't had a great run in 2020. In fact, the Aussie bank's shares have fallen 37.72% while the S&P/ASX 200 Index (ASX: XJO) is down 17.76% this year.

So, is the Aussie bank's share price in the buy zone or should you steer clear in 2020?

What's been happening to the NAB share price?

The ASX bank shares are under pressure this year amid the coronavirus pandemic. The public health response has forced Aussies to stay home and many businesses have shut down.

That's put pressure on the economy, Aussie households and corporate earnings. The big banks underpin the economy and could feel the blow of a recession harder than most. That has spooked investors in 2020 and sent the NAB share price falling lower.

NAB reported a $1,313 million half-year net profit and cash earnings of $1,436 million. That means the ASX bank's cash earnings slumped 51.4% on the prior period or 24.6% excluding notable items.

NAB also announced plans to raise up to $3.5 billion via a fully underwritten institutional share placement of $3 billion and a non-underwritten Share Purchase Plan (SPP) to raise approximately $500 million.

The bank raised the funds at $14.15 per share, which represented an 8.5% discount to its last close price. However, the NAB share price is now trading at $15.34 per share, so is it back in the buy zone?

Is the ASX bank back in the buy zone?

I think there's more uncertainty ahead for the ASX banks in 2020. While the government stimulus measures are helping to prop up the economy, there are question marks over what happens in September and beyond.

If restrictions continue to ease, we could see the NAB share price bounce back quickly. With the economy up and running, the economic burden on businesses and households could be eased quicker than expected.

I think NAB is a speculative buy in the current climate but could be a long-term success if you're willing to buy and hold.

Motley Fool contributor Ken Hall 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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