The Commonwealth Bank of Australia (ASX: CBA) share price rocketed 2.32% higher yesterday, but is the ASX bank share in the buy zone?
Why the CBA share price climbed higher
Commonwealth Bank was a big part of the S&P/ASX 200 Index (ASX: XJO) gains on Monday. And the Big Four bank shares all climbed higher yesterday despite Treasurer Josh Frydenberg confirming Australia is headed for a technical recession in 2020.
The Aussie dollar had reached a new, 5-month high of 69.83 US cents on Wednesday before slipping back to 69.3 US cents by the end of the day. Whilst we learned the Aussie economy shrank by 0.3% for the March quarter, it marginally outperformed expectations of a 0.4% decline.
Hopes of a swifter than expected rebound from the coronavirus economic fallout could have been behind the CBA share price move. There's plenty of money being poured into ASX shares right now, but should you be buying CBA?
Is now the time to buy CBA?
The CBA share price is certainly rebounding strongly. Having hit a 52-week low of $53.44 on 23 March, CBA is now valued at $66.11 per share.
This means the Aussie bank is worth $117 billion right now. With a price to earnings (P/E) ratio of 11.99, CBA could be worth buying.
However, I still think there's plenty of uncertainty ahead. This means the ASX bank share could be volatile so waiting and watching might not be a bad strategy.
Of course, timing the market is basically impossible. If you're a believer in the Big Four banks and their role in the Aussie economy, CBA could be good value.
After all, it's still down 27.39% from its 52-week high of $91.05 per share. There are certainly some headwinds but I think CBA may have been oversold in recent months.
Foolish takeaway
The CBA share price could be in for more volatility in 2020 but I don't think it's overpriced right now.
Personally, I won't be buying until I see more corporate earnings in August, but bullish investors could get CBA shares for a steal at today's price of $66.11 per share.
