Australian Bank Stocks: Which ones look like a buy (and which don't)

Aussie bank stocks endured a horrid day yesterday. 

At the close of trading, the big four banks all were in the red. 

• Commonwealth Bank of Australia (ASX: CBA) – down 2.95%
• National Australia Bank Ltd (ASX: NAB) – down 2.37%
• Westpac Banking Corporation (ASX: WBC) – down 2.2%
• Australia And New Zealand Banking Group (ASX: ANZ) – down 1.96%

While it's just one day of trading, and we never overreact to a single day, the dominance of bank stocks in the Australian economy will often mean portfolios are impacted by poor performance. 

After a down day, are any of these stocks worth buying?

Let's quickly recap how bank stocks have performed recently. 

2025 performance

ANZ shares were the clear winner amongst the big four in 2025. 

These bank shares sit 24% higher than a year ago. 

Westpac shares were also a winner in 2025. 

At the time of writing, Westpac shares sit almost 17% higher than a year ago. 

Following behind, NAB are almost 10% higher than the start of 2025, while CBA are now almost even with January 2025. 

Which big four shares could be a buy in 2026?

With a strong performance amongst the big four bank shares in 2025, it seems experts are largely bearish in 2026. 

Valuations on these stocks remain full, with little upside tipped amongst brokers. 

Morgans has put a sell rating and $31.46 price target on NAB's shares, which would be a 24% decline from current levels. 

Westpac has an average one year price target of $33.41 according to TradingView (12% below current levels). 

ANZ's second half results disappointed Morgans.

The broker has a trim rating on ANZ's shares with a $33.09 price target (current share price hovering around $36). 

Meanwhile, CBA shares are tipped to keep falling from its current price of around $155: 

• Morgan Stanley has a price target of $144.80
• Jefferies has a target price of $143.87
• Morgans has a target of $99.81

Is it time to look outside the big four banks?

With little upside tipped for the big four banks, it could be an opportunity to look elsewhere. 

Despite being down roughly 5% over the past year, Judo Capital Holdings Ltd (ASX: JDO) is drawing attention from experts. 

The fast-growing challenger focussed on servicing small and medium enterprises (SMEs) is projected to generate impressive profit in 2026. 

UBS has a price target of $2.20 on these bank shares which indicates upside of almost 28%. 

The post Australian Bank Stocks: Which ones look like a buy (and which don't) appeared first on The Motley Fool Australia.

Motley Fool contributor Aaron Bell has positions in National Australia Bank. 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.

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