National Australia Bank Limited NAB

When Australia’s central bank lifts rates to a 15 year high, it does more than rattle borrowers. It rewrites the maths for cash, credit and company earnings. Some businesses can collect more on every dollar they lend, while others feel pressure as customers pull back. This article walks through three stocks from our Australian Interest Rate Beneficiary Financials screener that may benefit, and explains why the recent move matters for your portfolio decisions. The three stocks below are a...

National Australia Bank has delivered a 80.1% share price gain over the past 5 years, which naturally raises the question of whether that kind of performance is backed by the returns it earns on its capital or whether investors are paying up for something else. With the stock now around A$38.54, the issue is how well the current price lines up with what the business can realistically earn on the equity and capital it deploys. The 80.1% return over 5 years puts real weight on the idea that...