Wesfarmers shares: Buy, hold or sell?

Although they outperformed the S&P/ASX 200 Index (ASX: XJO) this week, Wesfarmers Ltd (ASX: WES) shares have been struggling in 2026.

Shares in the diversified ASX 200 conglomerate – whose retail subsidiaries include Bunnings Warehouse, Kmart Australia, Officeworks and Priceline – closed on Friday trading for $73.71.

That saw the stock close the week up 1.2%, outpacing the 2.2% losses posted by the benchmark index over this same time.

Still, Wesfarmers shares remain down 9.8% year to date, trailing the 0.3% gains delivered by the ASX 200 so far this calendar year.

Although that underperformance will have been partly mitigated by the $1.02 a share in fully franked dividends the company paid to eligible stockholders on 31 March. Wesfarmers stock trades on a 3.4% fully franked trailing dividend yield.

But with the ASX 200 stock coming under pressure this year, is Wesfarmers now trading for a bargain, or could it have further to fall?

Should you buy Wesfarmers shares today?

Red Leaf Securities’ John Athanasiou recently analysed the outlook for Wesfarmers stock (courtesy of The Bull).

“Wesfarmers is a diversified industrial conglomerate,” he said. “Major retail brands include Bunnings, Kmart, Target and Officeworks.”

However, Athanasiou sees headwinds building for Wesfarmers shares.

“Its businesses are household names, but recent trading suggests slowing consumer demand and cost pressures are weighing on sentiment,” he said.

Summarising his sell recommendation, Athanasiou concluded:

With much of its value already priced in amid a mixed outlook on near term retail growth, Wesfarmers lacks fresh catalysts to drive meaningful upside. Trimming positions into strength may be prudent for investors seeking a better risk-reward proposition.

What’s the latest from the ASX 200 conglomerate?

The last price sensitive news for Wesfarmers shares was the company’s half year results release (H1 FY 2026) on 19 February.

Highlights included a 3.1% year-on-year increase in revenue to $24.21 billion. And earnings before interest and tax (EBIT) of $2.49 billion were up 8.4% from H1 FY 2025.

On the bottom line, the company reported a net profit after tax (NPAT) of $1.60 billion, up 9.3%.

Commenting on the results, Wesfarmers managing Director Rob Scott said:

During the half, Wesfarmers’ divisions benefited from productivity initiatives to navigate ongoing challenging market conditions…

The divisions performed well, driving productivity to mitigate cost pressures and keep prices low for customers.

Amid high market expectations, and taking note of those ‘cost pressures’, Wesfarmers shares closed down 5.6% on the day of the results release.

The post Wesfarmers shares: Buy, hold or sell? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.