Woolworths’ $37 share price is near an all-time high, so why am I going to buy some as soon as possible?

Woolworths Group Ltd (ASX: WOW) shares finished at $37.01 before the Easter break, leaving the stock trading near its 52-week high.

That also puts it within reach of its all-time high of $42.47, which was set on 23 August 2021.

At first glance, buying more of a stock near record levels might seem counterintuitive.

But in the current market, I think Woolworths still stands out as one of the most reliable defensive positions on the ASX.

The ongoing war in the Middle East has kept pressure on oil prices, pushing fuel costs higher and increasing demand for pantry staples.

Periods like this often see investors move toward businesses with reliable demand and stable cash generation.

And Woolworths fits that profile well.

Everyday demand does not disappear

The main reason I would buy more Woolworths shares here is simple. People still need to eat no matter what is happening in the economy.

Whether inflation stays elevated, interest rates remain high, or consumer sentiment weakens further, grocery spending is usually one of the last areas households cut.

Families may pull back on discretionary purchases, delay travel, or spend less across retail, but food, toiletries, cleaning products, and other household staples remain essential.

That gives Woolworths a level of resilience many other ASX businesses simply do not have.

Scale is another major strength. With a large national store network and strong supply chain capability, Woolworths remains part of everyday consumer spending habits across Australia.

That supports margins and cash flow even when conditions become more difficult.

Recent execution is improving confidence

The other reason I am comfortable buying near these levels is that Woolworths’ recent performance has been encouraging.

At its February half-year result, the company delivered a stronger-than-expected 16% lift in underlying net profit and upgraded its earnings guidance. This was supported by stronger Australian food sales and a solid early second-half momentum.

Those numbers suggest the business is moving in the right direction after a softer 2025 period.

Management’s focus on pricing, value, customer retention, and cost discipline appears to be helping Woolworths defend market share. This is particularly relevant at a time when consumers are becoming more price-sensitive.

Foolish takeaway

Even at $37.01, I do not think the Woolworths share price fully captures the strength of the business in the current market.

Food demand remains non-discretionary, recent performance is improving, and the stock is still roughly 13% below its 2021 peak. That is why I still see Woolworths as a high-quality ASX blue-chip worth buying at current levels.

The post Woolworths’ $37 share price is near an all-time high, so why am I going to buy some as soon as possible? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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 positions in and has recommended Woolworths Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.