Commonwealth Bank of Australia (ASX: CBA) shares are sliding today.
Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock closed yesterday trading for $174.61. In afternoon trade on Wednesday, shares are changing hands for $172.29 apiece, down 1.3%.
For some context, the ASX 200 is down 0.3% at this same time.
Despite today’s slip, CBA shares have materially outperformed the benchmark index in 2026, up 6.9% compared to the 0.4% year to date loss posted by the ASX 200.
For a more accurate picture, we should also include the $2.35 a share fully franked interim dividend CommBank paid out on 30 March. That passive income payout followed another half year of strong profitability.
So, if we add that interim dividend back in, then the cumulative value of CBA stock has gained 8.4% so far in 2026, despite the broader Aussie stock market decline.
Which returns us to the topic at hand.
CBA shares: Buy, hold or sell?
Morgans’ Damien Nguyen recently analysed the outlook for Australia’s biggest bank stock (courtesy of The Bull).
“CBA is Australia’s strongest major bank, with a leading retail franchise and consistent profitability,” he noted.
Despite that consistent profitability, Nguyen expressed concerns over the Big Four bank’s current valuation.
According to Nguyen:
However, the market fully recognises these strengths. The shares were recently trading at a significant premium, leaving limited upside as interest rate benefits fade and competition increases.
CBA shares currently trade at a P/E ratio of around 28.
As for the other big four Aussie bank stocks, Westpac Banking Corp (ASX: WBC) shares trade on a P/E ratio of around 20 times; ANZ Group Holdings Ltd (ASX: ANZ) shares trade on a P/E ratio of around 18 times; and National Australia Bank Ltd (ASX: NAB) shares trade on a P/E ratio of around 18 times.
Explaining his sell recommendation on CBA shares, Nguyen concluded:
While the business remains high quality, future returns are likely to be more modest, in our view. With the company’s valuation pricing in a lot of good news, we see better value elsewhere, supporting a sell view.
Just how profitable is CommBank?
CBA reported its half year results (H1 FY 2026) on 11 February, and it was another profitable six months for the ASX 200 bank stock.
CBA shares closed up 6.8% on the day after the company reported a 6% year on year increase in its half year cash net profit after tax (NPAT) to $5.45 billion.
The post Should you buy CBA shares for their ‘consistent profitability’? appeared first on The Motley Fool Australia.
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More reading
- 5 years ago, $10,000 bought 112 CBA shares. How many would it buy now?
- Experts name 1 ASX bank share to buy and 2 to sell      Â
- Which of the big four bank shares has the most upside?
- Buy, hold, sell: Macquarie, Boss Energy, CBA shares
- Experts name 3 ASX 200 shares to sell now
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.