Woolworths Group Ltd (ASX: WOW) shares are outperforming the broader market in 2022, and they’re well-positioned to continue their trajectory, according to one expert.
BW Equities’ Tom Bleakly recently labelled the supermarket giant’s stock a ‘buy’ saying it (and its peers) have managed to shake off recent disruptions.
At the closing bell yesterday, the Woolworths share price was up 1.16% at $37.64. That’s 2.3% lower than it was at the start of the year.
In contrast, the S&P/ASX 200 Index (ASX: XJO) has slumped 7% so far this year.
So, what is it that the expert thinks Woolworths shares have going for them? Let’s take a look.
Here’s why this expert is backing Woolworths shares
Woolworths has faced numerous challenges this year, but its shares are still worth looking at, according to Bleakly.
He recently told The Bull he was impressed by the company’s recent earnings. Particularly, considering the notable supply chain issues it’s been facing.
Of course, the 13 weeks to 3 April saw major flood events in Australia as well as the worst of the Omicron outbreak.
That saw absenteeism surge in the company’s fulfilment centres, as well as the closure of stores and lesser product availability.
Still, Woolworths reported more than $15 billion of group sales for the period. That was a 9.7% increase on those of the prior comparable quarter.
Additionally, Bleaky believes the stock is in the right spot to ward off recent market turbulence.
The ASX 200 has been on a rollercoaster the last few weeks, seemingly spurred by Australia’s inflation rate hitting 5.1% in late April, followed by the nation’s first rate rise in 11 years in early March.
Bleaky commented that Woolworths’ home sector has been a “safe haven” in the turbulence.
Indeed, the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) has fallen just 1.6% since the start of this year, besting the performance of the Woolworths share price.
The post ‘Safe haven’: Why this broker backs Woolworths shares amid recent turbulence appeared first on The Motley Fool Australia.
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 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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