Should CBA shares be in your ASX stocking in December?

Should you buy yourself CBA shares for Christmas this year?

| More on:
Young woman thinking with laptop open.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • CBA is one of ASX's most popular shares
  • The bank has had a great run this year as well, beating the ASX 200
  • But does this mean we should buy CBA shares in December?

There's little doubt that the Commonwealth Bank of Australia (ASX: CBA) is one of the most popular ASX shares on our share market. Its status as the ASX's largest bank, and, for a few brief periods, the ASX's largest share by market capitalisation, no doubt helps. As would the fact that CBA has more Australian customers than any other bank.

CBA has had a pretty good run lately as well. The ASX 200 bank share is up a healthy 4.31% year to date in 2022, which looks pretty good against the broader S&P/ASX 200 Index (ASX: XJO)'s loss of 3.7%. The CBA share price is also up 11.5% over the past 12 months, and just this month, hit a new 52-week high of $109.20.

But size, past performance and popularity don't automatically translate into a good investment going forward. So now that we are almost at the end of the year, should CBA shares be in your ASX stocking this December?

Are CBA shares a perfect ASX stocking stuffer?

Well, expert opinions are a little mixed.

One broker who is optimistic about CBA is Macquarie. Last month, we covered some changes Macquarie has made to its model portoflios.

One notable one was the decision to swap out Australia and New Zealand Banking Group Ltd (ASX: ANZ) for CBA shares. Macquarie now views CBA as the "quality choice within the banking sector" and a better bet than ANZ right now.

However, Will Reggall of Climate Capital isn't convinced. As my Fool colleague covered this week, Riggall reckons Westpac Banking Corp (ASX: WBC) and National Australia Bank Ltd (ASX: NAB) shares are both looking more appealing than CommBank right now.

That's due to CBA's "high price" and the success Westpac and NAB have had with "executing growth and transformation strategies".

Earlier this month, we also covered the views of brokers at Wilsons. Wilsons has trimmed its exposure to all ASX banks in favour of lithium share Mineral Resources Limited (ASX: MIN).

This broker cites what it views as peaking net interest margins, as well as slowing credit growth and rising costs, in explaining its waning enthusiasm for bank shares.

So mixed views on CBA shares leading up to Christmas. But with this week's new 52-week high, shareholders have already gotten an early Christmas present from Commonwealth Bank.

Motley Fool contributor Sebastian Bowen has positions in National Australia Bank. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Bank Shares

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop.
Dividend Investing

Are CBA shares still a good buy today for passive income?

Looking to earn passive income from ASX dividend stocks? Here’s my take on CBA shares.

Read more »

Shocked office worker staring at computer screen with colleagues working in the background.
Bank Shares

The ASX bank share beating CBA in 2025

Many investors might not realise this smaller bank stock is leading the pack this year. 

Read more »

man thinking about whether to invest in bitcoin
Bank Shares

Here's what needs to happen for the CBA share price to try and reach $200

What could drive the CBA share price higher?

Read more »

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop.
Bank Shares

Why now could be an opportune time to sell CBA shares

A leading expert offers his verdict on the outlook for CBA shares.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Bank Shares

The Westpac share price is a buy – UBS

The broker is optimistic on Westpac shares.

Read more »

Bank building with the word bank on it.
Bank Shares

The biggest buyers and sellers of ASX 200 bank stocks revealed

Macquarie breaks down who’s been buying and who’s been selling the ASX 200 bank stocks.

Read more »

A young woman sits with her hand to her chin staring off to the side thinking about her investments.
Resources Shares

Should I switch my ASX 200 banking stocks for ASX 200 miners before earnings season?

The ASX 200 Index is dominated by Australia's bank and materials/mining sectors, which together account for around half of the…

Read more »

A man sits in contemplation on his sofa looking at his phone as though he has just heard some serious or interesting news.
Bank Shares

Here's when Westpac says the RBA will now cut interest rates

The RBA surprised everyone by keeping rates on hold last week. So, when will the next cut happen?

Read more »