When recommending ASX stocks, I believe that finance industry is the safest, especially for those new to Australian stocks. But out of the major Australian banks, which is the most promising?
1. $COMMONWEALTH BANK OF AUSTRAL(CBA.AU)$
Of the three banks I am focusing on, this is by far the largest, in terms of share price and market cap. The fact that it operates in multiple countries and continents, and is diversified in that sense, might explain investor confidence. If looking for a strong bank stock, this is the one I would recommend.
2. $NATIONAL AUSTRALIA BANK LIMITED(NAB.AU)$
National Australia Bank is another bank thatis very popular within Australia. My sense is that this is a stable stock. Costing a fraction of the share price for CBA, it is a friendlier alternative for those looking for a more "entrylevel" stock, or who have less funds.
3. $AUST AND NZ BANKING GROUP(ANZ.AU)$
Finally, we have the Australia and New Zealand Banking Group. Like the other bank stocks above, it operates in multiple territories, and should be a stable stock in the long term.Compared to the other two bank stocks, which are currently trading near their recent highs, ANZ is currently at a price that's lower inthe recent price fluctuation band. This couldbe a good opportunity, therefore, to get the stock more cheaply.
Overall, I think the choice between Australian banks depends on your preference. In the long term, they are all stable stocks with the potential for growth.
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