Up 29% in a year, are Westpac shares still a good buy today?

Can Westpac shares keep outperforming the ASX 200 in 2025?

| More on:
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.

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

Despite sliding 5.9% since last Friday's close, Westpac Banking Corp (ASX: WBC) shares remain up an impressive 29.4% since this time last year.

Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock are down 2.0% in intraday trade today, swapping hands for $32.62 apiece.

For some context, the ASX 200 is down 0.7% at this same time, as investors await the much-anticipated interest rate decision from the RBA this afternoon.

Atop the sizeable capital gains the big four bank delivered to investors over the year, Westpac also paid out $1.66 in fully franked dividends. This sees Westpac shares trading on a fully franked trailing dividend yield of 5.1%.

With that strong run behind it, can the ASX 200 bank stock keep outperforming in the year ahead?

Westpac shares: Buy, sell, hold?

While a growing number of analysts are increasingly bearish on the big four bank stocks, Fairmont Equities' Michael Gable believes Westpac shares have more gains to offer in the months ahead (courtesy of The Bull).

"The share price has performed strongly in the past 12 months, increasing from $24.55 on February 13, 2024, to trade at $34.82 on February 13, 2025," Gable noted last week, when shares were trading 6.3% above current levels.

"It has led some market watchers to suggest profit taking, citing the shares are overvalued," said Gable, who has a bullish 'hold' recommendation on the ASX 200 bank stock.

Indeed, consensus analyst recommendations on CommSec show one strong buy, three hold, two moderate sell, and five strong sell suggestions.

But pointing to the strong momentum of Westpac shares over the past six months, Gable is more optimistic.

"Our charting analysis suggests WBC can continue trading higher from here. Since September 2024, the share price has been forming higher lows, which is a bullish sign," he said.

Created with Highcharts 11.4.3Westpac Banking Corporation PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

What's the latest from the ASX 200 bank stock?

Westpac reported its first-quarter results yesterday.

Excluding notable items, the ASX 200 bank achieved a 3% increase in net profit to $1.9 billion.

However, investors may have pressured Westpac shares on the day, with the bank's net interest margin (NIM) slipping 0.02% to 1.81%.

Looking to what's ahead, Westpac CEO Anthony Miller said, "We continue to prioritise financial strength with capital, funding and liquidity remaining comfortably above regulatory minimums."

Miller added:

Cost of living pressures and high interest rates remain challenging for some customers while many businesses face cost pressures and lower demand. Encouragingly, inflation has eased.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. 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 no position in any of the stocks mentioned. 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

Bank building with the word bank in gold.
Bank Shares

What price targets does Macquarie have on the big 4 banks?

Here's what the broker has to say about the big 4 bank share prices.

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Bank Shares

Should I buy ANZ shares today?

With a 5.7% dividend yield, are ANZ shares a good buy right now?

Read more »

A woman sits at her computer with her hand to her mouth and a contemplative smile on her face as she reads about the performance of Allkem shares on her computer
Bank Shares

Can Bank of Queensland shares keep outperforming the other ASX 200 bank stocks into 2026?

A leading expert offers his verdict on what’s ahead for Bank of Queensland shares.

Read more »

A man in a suit smiles at the yellow piggy bank he holds in his hand.
Bank Shares

Forget CBA shares, Ord Minnett says this ASX bank stock could rocket 50%+

Let's see which bank stock could be a better buy.

Read more »

ASX 200 shares broker downgrade origami paper fortune teller with buy hold sell and dollar sign options
Broker Notes

Are Bendigo Bank shares a buy, hold or sell? Here's Macquarie's latest recommendation

Should I buy the dip on Bendigo Bank shares today?

Read more »

A man thinks very carefully about his money and investments.
Bank Shares

Why these experts say sell CBA shares now

These two investment experts recommend selling CBA shares today. But why?

Read more »

A human-like robot checks out market performance on a laptop, indicating the rise of AI shares.
Bank Shares

Westpac share price drops despite key AI appointment

The banking giant is doubling down on its AI ambitions.

Read more »

A woman looks questioning as she puts a coin into a piggy bank.
Bank Shares

Should you buy NAB shares in June?

Is this the right time to invest in the ASX bank share?

Read more »