The Wesfarmers Ltd (ASX: WES) share price continued its positive run on Monday with another gain.
This saw the conglomerateâs shares climb to a new 52-week high of $52.39 at one stage.
When the Wesfarmers share price reached that level, it was up approximately 14% year to date. This compares very favourably to the ASX 200 index, which is up a more modest 5% in 2023.
Why is the Wesfarmers share price on fire right now?
Investors have been buying the Bunnings and Kmart ownerâs shares this year for a few reasons.
One is its defensive qualities in the current uncertain economic environment. Given how its businesses tend to perform well whatever is happening in the economy, Wesfarmers is often seen as a safe option for investors.
This is perhaps more the case than ever thanks to its focus on value. This could prove particularly important as budgets get squeezed from the cost of living crisis.
Another reason could be news that the company has been selling down its Coles Group Ltd (ASX: COL) stake. Wesfarmers is understood to have sold whatâs left of its stake for approximately $700 million.
This gives it some serious firepower to make a new acquisition. Though, it is unclear what the company might have its eyes on.
Anything else?
A couple of bullish broker notes are likely to have also given the Wesfarmers share price a lift this year.
For example, both Morgans and UBS have put the equivalent of buy ratings and $55.50 price targets on its shares.
This even suggests thereâs still room for its shares to rise a bit further from here. So donât be surprised if the Wesfarmers share price finds itself trading at a new 52-week high in the near future!
The post Why did the Wesfarmers share price just smash a new 52-week high? appeared first on The Motley Fool Australia.
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More reading
- 5 steps to bring in $1,000 per month in passive income
- Wesfarmersâ CEO just offloaded $9m of the ASX 200 companyâs shares. Hereâs why
- What’s next for Wesfarmers shares after cashing out $700 million from Coles?
- Which ‘high conviction’ ASX 200 shares is this fundie backing to beat the market?
- Morgans names more of the best ASX 200 dividend shares to buy in April
Motley Fool contributor James Mickleboro 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 Coles Group and Wesfarmers. 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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