ASX 200 shares enjoyed a bumper performance last week as the S&P/ASX 200 Index (ASX: XJO) jumped 4.71% higher. There’s growing optimism about the global economy in 2020 and investors have been pouring money into shares. 

Last week I was watching CSL Limited (ASX: CSL), A2 Milk Company Ltd (ASX: A2M) and Stockland Corporation Ltd (ASX: SGP).

It was a tough week for CSL shareholders as the biotech giant’s shares slumped 5.06% to $276.22. A2 Milk shares edged 0.85% higher last week while the Stockland share price surged 16.29% higher by Friday’s close.

After a big week for last week’s top picks, here are the 3 ASX 200 shares I’ll be keeping my eye on in the week ahead.

3 ASX 200 shares to watch this week

I think Bendigo and Adelaide Bank Ltd (ASX: BEN) shares are worth watching this week. The ASX 200 bank’s share price rocketed 10.41% last week after the company provided an update on COVID-19 impacts on Thursday. Bendigo reported a strong capital position, despite the pandemic, which looks to have boosted investors’ optimism. I think any share that rockets higher is worth watching to see if it continues to climb and outperform its peers or slump back to earth.

Flight Centre Travel Group Ltd (ASX: FLT) shares are also on my weekly watch list. The ASX 200 travel share rocketed 15.85% higher and could be climbing even further this week. Travel restrictions continue to ease which is good news for Flight Centre’s earnings. If the good news continues here in Australia, I think the Flight Centre share price could be heading higher in 2020.

Finally, the St Barbara Ltd (ASX: SBM) share price is one to watch this week. The Aussie gold miner’s shares fell 1.29% last week as many of its ASX 200 peers rocketed. Gold tends to underperform when investors are bullish which was the case last week. Despite some optimism about the current environment, however, I think there could be more volatility on the way. This could bode well for St Barbara and its gold mining compatriots.

More reading

• 3 top ASX dividend shares to buy now
• Is the Woolworths share price cheap today?
• 5 ASX 200 winners and 3 losers from last week
• Why ASX iron ore miners may outperform this morning
• ASX 200 Weekly Wrap: Surging bank shares push ASX toward 6,000

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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The Woolworths Ltd (ASX: WOW) share price could be trading cheaply right now. Shares in the Aussie retailer are down 2.27% this year having hit a new 52-week high on 20 February. So, with all the volatility in the market right now, is the Aussie retailer in the buy zone?

Is the Woolworths share price cheap today?

I think there’s a lot to like about Woolworths right now. The group’s supermarket division is going strong as sales have surged in 2020. That continues to underpin a strong business model which is starting to look more strategically aligned by the year.

There is the ailing pubs business that is weighing on the Woolworths share price right now: ALH Group. ALH operates 323 licensed venues and over 537 retail liquor outlets across Australia. That encompasses restaurants, bistros and other establishments. However, the coronavirus pandemic has hit that business hard as restrictions have led to temporary closures.

However, restrictions are starting to ease and things could be looking up for Woolworths and its share price. I think it’s fair that Woolworths’ value has dropped in 2020 as the economic environment has changed. However, I think $35.34 may be a little low for a company that has traded as high as $43.96 per share in mid-February.

But Woolworths is trading roughly on par with the Coles Group Ltd (ASX: COL) share price in 2020. That indicates to me that its supermarket performance is being valued similarly to its peers. If we compare conglomerate to conglomerate, the Wesfarmers Ltd (ASX: WES) share price is down 2.49% this year. 

If we assume the market is correctly pricing in the current economy, then the Woolworths share price is trading in line with its peers. I think if restrictions continue to ease and Woolworths’ pubs business bounces back quickly, that could make the current $35.34 valuation look cheap.

Foolish takeaway

The Woolworths share price has been on a rollercoaster in 2020. I think the company could be undervalued right now but only if restrictions continue to beat expectations. I’m not willing to speculate at the current price given it’s trading roughly in line with its closest peers.

More reading

• 3 top ASX dividend shares to buy now
• 3 ASX 200 shares to watch this week
• 5 ASX 200 winners and 3 losers from last week
• Why ASX iron ore miners may outperform this morning
• ASX 200 Weekly Wrap: Surging bank shares push ASX toward 6,000

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET, Wesfarmers Limited, and Woolworths Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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In morning trade on Monday the Qantas Airways Limited (ASX: QAN) share price has hit a bit of turbulence.

At the time of writing the airline operator’s shares are down almost 2% to $3.92.

Why is the Qantas share price dropping lower?

This morning the Australian Competition and Consumer Commission (ACCC) announced that it is continuing to investigate the airline’s acquisition of a 19.9% stake in Alliance Aviation Services Ltd (ASX: AQZ).

The competition watchdog notes that Qantas acquired the stake last year, becoming Alliance’s single biggest shareholder.

This led to the ACCC issuing a statement of issues, which set out its competition concerns with the minority stake.

In response to queries by various stakeholders, this morning the ACCC provided the market with an update on its investigation.

ACCC Chair Rod Sims commented: “Qantas’ decision to complete the acquisition of the 19.9 per cent stake in Alliance without first seeking ACCC clearance means this is an enforcement investigation rather than a standard merger review.”

“The Australian aviation industry remains highly concentrated and it is crucial that competition provided by smaller airlines is maintained long-term,” he added.

As such, the competition watchdog is looking very closely at Qantas’ shareholding.

Mr Sims explained: “The ACCC has been closely scrutinising the effects of the acquisition of this shareholding by Qantas. Acquiring a strategic stake in a close competitor in such a concentrated market raises clear competition concerns.”

What now?

The ACCC’s investigation will now focus on the competitive dynamics between Qantas and Alliance. It will examine whether the stake affects Alliance’s ability to raise funds, consider takeovers, or participate in commercial ventures.

It will also look to see whether Qantas is attempting to exert influence on Alliance’s decision-making or operations.

“We will consider enforcement action if there is evidence that the Qantas shareholding is compromising Alliance’s ability to be a strong competitor to Qantas, now and in the future,” Mr Sims added.

The ACCC also revealed that it isn’t keen on Qantas increasing its stake further, as it has suggested it plans to do.

 “Our current view is that any further increase in Qantas’ stake in Alliance is very likely to raise significant competition concerns under the Competition and Consumer Act,” Mr Sims concluded.

More reading

• Why ASX 200 travel shares are soaring higher today
• ASX 200 rallies hard, no longer in bear territory
• The ASX 200 just hit an 11-week high. Here are 3 reasons we might be in overvalued territory
• The one sector that could experience a V-shape COVID-19 recovery
• Could low oil prices and domestic flights make the Qantas share price a buy?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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