We give you the best of the big four banks in Australia to buy with our favourite stock.

WHY THERE IS VALUE IN AUSTRALIAN BIG BANK STOCKS FOR INVESTORS

The big Australian banks are essentially giant building societies. Most of the assets are home mortgages because that’s where they get the best return on capital, but there are important variations.

Top ASX Blue Chips for your portfolio. 5 ways to adapt your portfolio to be more defensive and the high returns portfolio that combines the value of Blue Chips with power of small caps

Welcome to Stocks and Beers with Rich! We’re all seeing fluctuations in our portfolio so Rich gives investors some insight into protecting your wealth and growing it.

Find out which banks are good value, the big news in the US and why Australian banks are unique and secure!

Stocks priced for blue sky growth prospects are vulnerable. Look at the tech sell off and …retail. The bigger they are, the harder they fall. In the past few weeks the biggest names in American retail, Walmart, Target and Amazon have all dropped 25% in short order on first quarter results. In the same breath, investors are hoovering up stocks where they see value, such as Westpac Bank (WBC), which has climbed 7% since we tipped it as a Buy in February (11 Feb 2022, Issue 97).

It was only last April that Under the Radar Report talked about takeovers and mergers ramping up, and guess what? Three months later and that trend is only accelerating on the big and small cap front, with the announcement today that US payments giant Square, led by Twitter founder Jack Dorsey, will acquire Afterpay (ASX:APT) in a $39 billion deal, worth over $126 a share. A stratosphere away from when Under the Radar Report first tipped that stock at $2.51 in mid-2017, delivering some sort of return you can only dream about.

We’ve rated Zip Co (Z1P) a Hold and hope that subscribers who took our advice to buy at 66 cents in May 2017 have held on. They would be sitting on a 1539% return. If they invested $10,000 it would now be worth $164k. Even if they hopped back on board when we said to last year in September when it purchased the US business Quadpay, they’d be almost doubling their money. What to do now is always the question.

Making money is not just about picking winners. It’s about taking profits to generate big gains. You need to recognise value because the market is a pendulum and you need to benefit from excess optimism as well as pessimism.

The share prices of the banks are now pretty much at the level they were at prior to the onset of the Covid pandemic in late February 2020 (CBA’s are in fact about 5% higher), having returned an average of 55% in the past 12 months. While their earnings are within the ballpark of pre-pandemic levels, those all important dividends remain substantially below. What’s going on? In one word: value is back.

In this article we give you our three outperforming ASX small cap stocks including Pilbara Minerals (PLS), AVA Risk (AVA) and LaserBond (LBL).