Wesfarmers shares: Buy, hold or sell?

Wesfarmers Ltd (ASX: WES) shares are slipping today.

Shares in the S&P/ASX 200 Index (ASX: XJO) conglomerate – whose retail subsidiaries include Bunnings Warehouse, Kmart Australia, Officeworks and Priceline – closed yesterday trading for $79.75. During the Tuesday lunch hour, shares are changing hands for $78.67 apiece, down 1.4%.

For some context, the ASX 200 is down 0.6% at this same time.

Longer term, Wesfarmers shares are down 5.6% over the past year, underperforming the 3.1% 12-month gains posted by the benchmark index.

Although that underperformance will have been somewhat eased by Wesfarmers fully franked dividend payouts over this time. The ASX 200 stock trades on a 2.7% fully franked trailing dividend yield.

And there were some promising growth signs in the first half of the 2026 financial year, with Wesfarmers reporting a 9.3% year-on-year increase in net profit after tax (NPAT) to $1.6 billion.

So…

Should I buy Wesfarmers shares today?

Red Leaf Securities’ John Athanasiou recently ran his slide rule over the $89 billion ASX 200 stock (courtesy of The Bull).

“The industrial conglomerate’s performance is supported by a diversified portfolio across retail, industrials and chemicals,” he noted.

“The group’s strength lies in disciplined capital allocation and its ability to generate steady returns across cycles,” Athanasiou added.

But Athanasiou sounded a cautious note on the further short-term growth prospects for Wesfarmers shares.

“However, in our view, near term growth is likely to remain subdued as consumer spending normalises and retail conditions become more selective,” he said.

Summarising his hold recommendation on the ASX 200 stock, Athanasiou concluded:

Hardware giant Bunnings continues to provide earnings stability. The stock’s valuation appropriately reflects its quality profile, leaving limited re-rating potential in the absence of a stronger macro tailwind.

Wesfarmers remains a reliable long-term holding, but it’s best viewed as a steady compounder rather than a growth catalyst.

A more bearish view on the $89 billion ASX 200 conglomerate

Medallion Financial Group’s Philippe Bui has a more bearish take on the outlook for Wesfarmers stock.

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

Bui noted, “Wesfarmers is a high-quality business, but the outlook is softening, in our view.”

As for his sell recommendation on Wesfarmers shares, Bui said:

A deteriorating consumer environment and sticky inflation are pressuring forward earnings, while Amazon’s growing penetration across core retail categories is an intensifying competitive threat that shows no signs of abating.

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.