The Commonwealth Bank of Australia (ASX: CBA) share price has rocketed higher in recent months but is down 13.6% this year.

That means the ASX bank share is underperforming the S&P/ASX 200 Index (ASX: XJO) which has slumped 10.9% lower in 2020.

So, is the CBA share price a steal at $69.03 per share or should you hold off buying?

Is the CBA share price a cheap buy in 2020?

It’s fair to say 2020 has been a pretty wild ride for CBA shareholders.

The Aussie bank share hit a new 52-week high of $91.05 per share in February before slumping to a 52-week low of $53.44 in the March’s bear market.

Investors were spooked by the potential impacts of the coronavirus pandemic on the Aussie banks.

Many felt that the shutdown would strain businesses and households, leading to more home loan defaults and write-downs.

That hasn’t turned out to be the case, partly due to better-than-expected public health outcomes and huge government stimulus.

So, where does that leave the CBA share price in terms of value?

At its current $69.03 per share, I don’t think CBA is either cheap or expensive. Where the ASX bank share is headed from here I think really depends on how fast the economic recovery is.

If we see a ‘V’ or ‘W’ shaped recovery, the CBA share price could approach its 52-week high again by the end of the year.

If the economy bounces back strongly, that means lower unemployment and strong debt serviceability from businesses.

There are also a couple of measures which could translate to higher earnings for the Aussie bank.

For instance, CBA automatically cut its mortgages to minimum repayments in March. That helped ease the economic burden on many households but it may also prolong the repayment period, meaning more interest income in the long-run.

Foolish takeaway

I don’t know where the CBA share price will go from its current level but I think I’m 50-50 on buying right now.

I would like to see evidence of economic recovery before investing in the ASX bank share. That could mean strong wage and employment figures or even the August earnings season.

Until then, I’ll be a close observer to see if there are more buying opportunities in the current market.

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Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.

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The Freedom Foods Group Ltd (ASX: FNP) share price is plummeting today in response to news of a management shake-up.

At the time of writing, Freedom Foods shares have dropped 14.06% to $3.025 after falling as much as 21.88% in morning trade.

What did Freedom Foods announce? 

This morning, the company revealed that its managing director and chief executive, Rory Macleod, is “on leave pending a further announcement that is expected to be made early next week”.

Commercial director Brendan Radford will take the reins for the time being as acting CEO. Mr Radford was previously the Australasian managing director of Rockstar Energy Drink and has 18 years of international experience in the fast-moving consumer goods (FMCG) space.

Additionally, current non-executive chairman Perry Gunner will move into an executive position on the board, in place of Mr Macleod.

Freedom Foods didn’t shed any further light on the matter, leaving many investors scratching their heads.

Mr Macleod joined Freedom Foods in 2003. Over the years, he has been involved in the company’s strategic, operational and financial development and stepped into the top job in 2012.

Today’s news follows another leadership announcement that was released after the market closed yesterday.

In yesterday’s after hours release, Freedom Foods disclosed the resignation of chief financial officer and company secretary, Campbell Nicholas.

Mr Nicholas joined Freedom Foods in September 2016. No details were provided in relation to his exit.

Stephanie Graham, general manager corporate development, has been appointed as acting CFO. Meanwhile, current non-executive director Trevor Allen has been appointed company secretary.

“The Finance team will continue to manage the usual financial controls,” Freedom Foods stated.

Including today’s drop, Freedom Foods shares have fallen just over 40% year-to-date.

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Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Freedom Foods 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.

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The CSR Limited (ASX: CSR) share price has fallen 1.57% on the back of its annual general meeting (AGM) held today. CSR is a leading building products company in Australia and New Zealand which has been in operation for 165 years. 

The AGM follows the release of the company’s full year results for year ended 31 March 2020 (YEM20) in which it delivered a statutory net profit of $125 million.

The CSR share price has fallen 7.4% over the past 12 months. This is in contrast to the S&P/ASX200 Index (ASX: XJO) which has declined 10.3%.

Let’s discuss the trading results, financial position and outlook released in the AGM announcement today.

Trading results

Managing director Julie Coates gave an update on the trading results in her address at the AGM:

”For the first 11 weeks of the current financial year (on a like for like basis), building products revenue in Australia is down 3%. Including the impact of New Zealand COVID-19 restrictions, the decline is 5%.”

The trading results were in line with CSR’s expectations of a slowdown in activity. As a result of the continuing uncertainty surrounding coronavirus, no guidance was provided by the company for YEM21.

Financial position

CSR’s financial position remains strong with a net cash position of $95 million at 31 March 2020. An additional $200 million facility is available should the need arise.

The company has decided to pause dividends and its share buyback, again due to uncertain economic outlook. Before the pause, CSR had returned $69 million in dividends in YEM20 and more than $69 million in an on-market share buyback which commenced in March 2019.

Outlook

Julie Coates gave some guidance regarding the outlook for the construction industry.

”Current lead indicators such as new homes sales in Australia during April and May are down 19% compared to the same period last year. This provides some indication of lower activity expected later in the year due to the lag in demand for our products, noting there will also be benefit from the announced government stimulus measures, but the timing and extent remains uncertain.”

The government stimulus Julie is referring to is the federal government’s $25,000 HomeBuilder grant. This provides eligible owner-occupiers with cash to substantially renovate an existing home.  

Is the CSR share price a buy?

In my view, an investment in CSR Limited looks to be risky in light of the downturn in new home sales. Furthermore, it’s too early to tell if the government stimulus will have its desired impact on the construction industry. From my perspective, this assistance also serves to reinforce the severity of the downturn facing the sector. 

Having said that, weakness in this cyclical industry could be a great entry point for the contrarian investor as the industry recovers. 

More reading

• The CBA share price is down 13% this year. Is it a cheap buy?
• Bull market! Avoid these 3 ASX mistakes if you don’t want to lose money
• Top brokers name 3 ASX 200 shares to buy today
• ASX 200 down 0.2%: Afterpay hits record high, TPG Telecom merger vote
• Is the Woolworths share price a secret buy?

Motley Fool contributor Matthew Donald has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.

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