Stock Pick

  • Is the Macquarie share price the best ASX bank to buy?

    cash piggy bank

    The Macquarie Group Ltd (ASX: MQG) share price has been hit hard by the coronavirus concerns in 2020.

    Macquarie shares slumped 52.41% lower between 21 February and 23 March as the S&P/ASX 200 Index (ASX: XJO) slumped into a bear market.

    Investors were clearly worried about the pandemic’s impact on the Aussie banks.

    We saw many banks report billion-dollar impairments while an oil price war also weighed on valuations.

    But the Macquarie share price has been on a solid run and edged 0.42% higher in Friday’s trade. That means the ASX bank share climbed 7.30% higher in the last week.

    So, with all the volatility, is Macquarie the best bank share to buy today?

    Why the Macquarie share price could be a bargain

    I like to look at the relative value of Macquarie versus its other major bank peers.

    The National Australia Bank Ltd (ASX: NAB) share price is down 20.91% in 2020. Similarly, Westpac Banking Corp (ASX: WBC) shares have fallen 22.45% lower this year.

    In contrast, the Macquarie share price is down 14.40%. That says to me that investors are somewhat more bullish on Macquarie versus the other ASX banks.

    That could be for good reason, too. Macquarie isn’t so much a retail bank as it is a business and investment bank.

    That means Macquarie generates significant earnings from investments like infrastructure and its corporate banking compared to home loans for the other ASX banks.

    No one knows if that will be a good or bad thing in 2020. However, I think diversified and strategic investments could translate to some big wins for Macquarie.

    The Macquarie share price closed at $118.00 per share on Friday. That means a price to earnings (P/E) ratio of 13.86 right now.

    That makes it about on par with Westpac (14.11) and cheaper than NAB (17.48) right now.

    Foolish takeaway

    There’s no such thing as a sure thing in ASX bank shares right now. However, the Macquarie share price could be a cheap relative buy if it outperforms its major bank peers in 2020.

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    More reading

    Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post Is the Macquarie share price the best ASX bank to buy? appeared first on Motley Fool Australia.

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  • AFL-CIO’s Trumka Says the Enemy Is a Broken Justice System

    AFL-CIO's Trumka Says the Enemy Is a Broken Justice SystemJun.05 — AFL-CIO President Richard Trumka discusses the George Floyd protests, police unions and unemployment. He speaks with Bloomberg’s David Westin on “Bloomberg: Balance of Power.”

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  • Airbus Gets No New Aircraft Orders In May Amid Aviation Crisis

    Airbus Gets No New Aircraft Orders In May Amid Aviation CrisisAirbus Group SE (EADSF) said that it did not receive a single new order in May as the global aviation crisis fueled by the coronavirus pandemic throttled demand for new commercial jets.The France-based planemaker delivered 24 aircraft to customers during the month of May, including A220, A320 and A350 XWB planes, it said in a statement on Friday. No orders were canceled, Airbus said.Commercial airline travel has fallen off a cliff due to coronavirus-induced lockdown restrictions forcing many airlines around the world to ground the majority of their fleets and to sharply reduce spending.The travel restrictions tied to the pandemic have resulted in a deep cut in the number of commercial jets and services planemakers’ customers need over the next few years with some asking for delivery delays or order cancellations.In May, Airbus delivered two A220-300 to Air Canada and 18 A320 aircraft including the first A320neo to Wizz Air. For Airbus widebody aircraft, four A350 XWBs were provided in both A350-900 and A350-1000 configurations.Airbus’ backlog of aircraft remaining to be delivered as of 31st May stood at 7,621, the planemaker said.This month, Qatar Airways demanded from Airbus and Boeing Co (BA) to defer deliveries or face a loss of future business.Separately Airbus CEO Guillaume Faury signaled last week that the planemaker would sue airlines who don’t keep order contracts due to the coronavirus crisis.“But if and when airlines – and it’s happening – have no other choice than fully defaulting and not proposing something better than nothing, or are not willing to do it, then (lawsuits) will happen,” Faury told Politico.Shares in Airbus surged 11% to $90 on Friday, narrowing this year’s drop to 40%.Looking ahead, Wall Street analysts expect more declines in the shares over the coming year with the average price target set at $80.96, which reflects 10% downside potential.Overall, though, analysts have a cautiously optimistic outlook on the stock. Out of 16 recent reviews, 9 have Buy ratings versus 5 Hold ratings and 2 Sell ratings which add up to a Moderate Buy consensus. (See Airbus stock analysis on TipRanks).Related News: Boeing CEO Says ‘Likely’ A Major Airline Could Fold In 2020 Colombian Carrier Avianca Files for Bankruptcy Protection Due to Coronavirus Woes Qantas Said to Halt Plane Deliveries From Boeing, Airbus Amid Travel Freeze More recent articles from Smarter Analyst: * Syracuse Is Said To Be In Talks To Buy Bankrupt J.C. Penney; Shares Leap 55% * Idexx Unit Gets European Union Regulatory Nod For Covid-19 Test Kit * AstraZeneca Approached Gilead For Potential Merger – Report * Emergent Bio Plunges 14% Post-Market After Directors Divest Shares

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