The big four ASX bank stocks will always be relevant in the Australian stock market because of their dominant market share.
Collectively, they make up over 20% of Australia’s benchmark index, the S&P/ASX 200 Index (ASX: XJO).
That means the performance of the big four banks largely influences many investors’ the portfolios.
Let’s see how they are performing so far in 2026.
2026 at a glance
As we approach the halfway mark of the calendar year, all four banks are in the red since January.Â
- Commonwealth Bank Of Australia (ASX: CBA) shares are down just 0.2%
- ANZ Group Holdings Ltd (ASX: ANZ) shares have fallen nearly 4%
- Westpac Banking Corporation (ASX: WBC) shares have dropped 8%
- National Australia Bank Ltd (ASX: NAB) shares are 14% lower than the start of the year.Â
Investors have been rotating out of ASX bank stocks for a few reasons, with valuations being hit hard.
This was clear last week when CBA shares dropped 9% in a single day.
Among many headwinds, ASX bank shares are down in 2026 because investors expect slower profits after Australian housing tax changes, reduced confidence in mortgage and property-market growth.
Banks are also increasing provisions for bad debts as households face higher financial stress and loan arrears rise. The selloff has been amplified because bank valuations were already considered expensive, making investors quick to react to weaker outlooks.
What are brokers saying?
With recent share price weakness, investors may be thinking these blue-chips are now trading at a relative discount.
However recent analysis from experts indicates there could be more pain in the short term.
For Australia’s largest bank, brokers have price targets set between $90 per share and $130 per share on CBA.
This indicates a further drop of between 18% and 44%.
It’s a similar outlook for Westpac shares.
After the company released half-year results, the team at Ord Minnett placed an updated price target of $31.00 on the ASX bank stock.Â
This implies a downside potential of 13%.
Turning attention to NAB shares, there is mixed sentiment amongst brokers.
Fair price estimates range from $26 to $48 per share.
With the current share price sitting at around $36, this indicates a wide range of outcomes over the next 12 months.
Finally, ANZ appears to be the ASX bank stock receiving the most broker optimism.
Citi recently renewed its buy rating on ANZ shares on Tuesday along with a 12-month price target of $40.
This indicates an upside potential of 14% from current levels.
The post Which big four ASX bank stock is the best buy right now? appeared first on The Motley Fool Australia.
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- Buy, hold, sell: Catapult Sports, Worley, CBA shares
Motley Fool contributor Aaron Bell 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 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.