At time of writing, the share price of Westpac Banking Corporation [ASX:WBC] is up .64%, trading at $25.14.
If you look at the history of the Westpac share price over the last 12 months, you can see that it appears to have found support around the $24 mark:
The Westpac share price is climbing back up since the New Year, after the AUSTRAC scandal wreaked havoc on the company. We take a quick look at whether this is a buying opportunity.
Four things to consider when assessing the current Westpac share price
Here they are:
- Banks are struggling to adapt to technology and a changing regulatory environment
- Fintech is on the rise
- This could lead to ‘old money’ Big Four banks making acquisitions in the ‘new money’ fintech sector
- As a result, you need to be discerning when looking at fintech and bank stocks
It’s all about competition, really.
CBA for instance, is now pulling away from the pack and has broken through resistance at $82 dollars — something which it brushed up against/briefly pushed past six times.
Matt Hibbard explains why CBA may have an edge in this new environment here, by the way.
But going back to Westpac — the key going forward will be what its next acquisition might be — if it makes one.
If you still believe there is more room for the Westpac share price to run, you may be right for a time.
Scandals frequently create market overreactions.
The big trend however, is towards an increasingly challenging and competitive environment for the Big Four.
You could for example, buy the Westpac dip hoping it makes smart acquisitions and balance out this perceived safety with a supposedly riskier buy in the fintech space.
Go both ways, so to speak.
But whichever way you look at it — money is changing. How we use it, which institutions we trust with it — and the technology we use to govern its movement.
So if you enjoyed this analysis, consider taking out a free subscription to Money Morning. In it you will find our Editors’ unique blend of financial analysis — ideas you won’t get from other outlets.
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