Wesfarmers shares: Buy, hold or sell?

Wesfarmers Ltd (ASX: WES) shares are outperforming the benchmark so far in 2026

Shares in the S&P/ASX 200 Index (ASX: XJO) conglomerate – whose retail subsidiaries include Bunnings Warehouse, Kmart Australia, Officeworks and Priceline – closed on Monday trading for $86.83.

That sees the Wesfarmers share price up 6.2% this calendar year, outpacing the 2.2% year-to-date gains posted by the ASX 200.

Atop that outperformance, Wesfarmers also paid out a $1.02 a share fully franked dividend to eligible stockholders on 31 March. The ASX 200 stock trades on a 2.9% fully franked trailing dividend yield.

On 19 February, the company reported increased revenue and profits in the first half of the 2026 financial year (H1 FY 2026).

First half revenue of $24.21 billion was up 3.1% from H1 FY 2025. Net profit after tax (NPAT) of $1.6 billion was up 9.3% year-on-year.

“Wesfarmers’ increase in profit was supported by strong earnings contributions from our largest divisions – Bunnings, Kmart Group and WesCEF,” Wesfarmers managing director Rob Scott said on the day.

Which brings us back to our headline question.

Are Wesfarmers shares a good buy right now?

DP Wealth Advisory’s Andrew Wielandt recently analysed the outlook for ASX 200 conglomerate (courtesy of The Bull).

“The company’s operations span across a diversified industrial portfolio, including retail, fertilisers, chemicals and more recently healthcare,” he noted.

Explaining his hold recommendation on Wesfarmers shares, Wielandt said:

However, the market is cautious about a slowing domestic economy under pressure from rising interest rates. A proposed change in taxation treatment for capital gains may slow the property market.

And Wesfarmers is also looking at shelling out significantly higher salaries.

“Wesfarmers is one of the biggest employers in Australia, so a minimum 4.75% wage increase for employees from July 1, 2026 may also weigh on the minds of investors,” Wielandt concluded.

Consider this ASX ETF instead

Wielandt isn’t ready to pull the buy trigger on Wesfarmers shares at current levels.

But he sounded a bullish note on an exchange traded fund (ETF) that holds ASX giants like BHP Group Ltd (ASX: BHP), Westpac Banking Corp (ASX: WBC) and National Australia Bank Ltd (ASX: NAB) shares.

Namely, the Milford Australian Absolute Growth Complex ETF (ASX: MFOA).

According to Wielandt:

This exchange traded fund invests in a diversified portfolio of predominately Australian equities, complemented by selective exposure to international equities, fixed interest securities and cash. The fund aims to generate returns of 5% above the Reserve Bank of Australia’s cash rate. The fund also aims to preserve capital in times of uncertainty.

Summarising his buy recommendation on the ASX ETF, Wielandt said:

This ETF proved its resilience during market volatility in March 2026. The ETF has risen from $10.87 on June 12, 2025 to trade at $11.31 on June 11, 2026. We like MFOA’s outlook in volatile and stable times.

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 BHP Group and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.