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October was a volatile month for the S&P/ASX 200 Index (ASX: XJO). Despite a few peaks and troughs, the ASX 200 ended up recording an anaemic loss of 0.1% for the month that was. But let’s take a closer look at one ASX 200 share which had a far more interesting time of it. That would be the Woodside Petroleum Ltd (ASX: WPL) share price.

Woodside is a major player in the ASX 200 Index and is also the largest pure-play oil company on the share market. So how did it do over October? Well, Woodside shares started the month at $23.88 a share. Last Friday, Woodside closed at a price of $23.35. That means that, on paper, Woodside shares recorded a loss of 2.22% for the month.

But that doesn’t really tell us all that happened with this company over the month. Even though the two prices bookended Woodside’s October, the company got as low as $23.26 a share and as high as $25.46 during the period. That’s a difference of around 10%.

Oil prices and a rising dollar hit Woodside shares

Of course, both this volatility and Woodside’s rather poor performance for the month can be blamed on one thing: the crude oil price. Energy companies like Woodside ride or die on the price of crude oil. Since Woodside’s costs are relatively fixed, changes in the oil price can make all the difference to this company’s profitability.

According to Markets Insider, crude oil had a relatively strong month over October. West Texas Intermediate (WTI) crude rose from around US$75 a barrel at the start of the month to more than US$83 by the end. It even spiked as high as US$85 a barrel towards the end of the month before settling down again.

So why didn’t Woodside’s share price react accordingly to the price of oil rising?

Well, it’s possible that a rising Australian dollar helped blunt this tailwind. While oil rose over the month, so did the Aussie dollar against the US dollar. At the start of October, one Aussie dollar was buying around 72 US cents. This had risen to roughly 75 US cents by the end of the month, a rise worth around 4%.

A higher Aussie dollar means it’s theoretically more expensive for Woodside to turn the US dollars it receives for its oil into Australian dollars, handicapping the boost it would be getting from the higher oil prices.

At the current Woodside share price of $23.38 at market close on Tuesday, this ASX 200 energy share has a market capitalisation of $22.7 billion, with a dividend yield of 2.41%.

The post How did the Woodside Petroleum (ASX:WPL) share price perform in October? appeared first on The Motley Fool Australia.

More reading

• Real estate shares are leading the ASX 200 on Tuesday
• ASX 200 (ASX:XJO) midday update: Netwealth’s merger proposal, IAG sinks
• It’s been a great 2021 so far for the CBA (ASX:CBA) share price
• Why is the Brickworks (ASX:BKW) share price falling today?
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Sebastian Bowen 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The AML3D Ltd (ASX: AL3) share price is rocketing during afternoon trade. This comes after the advanced 3D parts manufacturer announced that it has entered the aerospace market.

At the time of writing, AML3D shares are swapping hands for 18 cents, up 20% for the day.

AML3D ventures into space technology

In today’s statement, AML3D advised that it has entered into a supply agreement with a leading North American aerospace company.

The deal will see AML3D produce specialised 3D printed high strength alloy parts for a bespoke prototype.

Little details were offered due to the highly sensitive nature of the contract. As such, the name of the aerospace company was withheld as well as the type of product and associated revenue.

AML3D noted that it was selected because of the high-strength and robust properties of its Wire Additive Manufacturing (WAM) process.

The company’s WAM technology uses 3D metal printers to weld metal wire to create near net shapes. This is considered a more sustainable way of manufacturing as compared to machining from billet, reducing material waste by 80%.

In addition, utilising WAM technology significantly reduces the cost of manufacturing as well as the time to build. This allows clients to customise parts for their specific needs.

A number of relationships are being forged with aerospace companies both in Australia and overseas to capture significant growth opportunities.

AML3D managing director Andrew Sales commented:

To have secured a key purchase order for prototype with a globally recognised space exploration company is further validation of our technological capability at AML3D.

…I am confident that the momentum generated from this new aerospace purchase order will deliver a strong pipeline of opportunities in global space exploration part production both here in Australia and internationally, as we continue to demonstrate our capabilities to companies within this particular sector. AML3D has the desire and expertise to play a significant role in this burgeoning industry.

Market opportunity for 3D printing

The addressable market for 3D printing is growing at a fast rate. Particularly given COVID-19 disrupted international supply chains, the industry is now seeking to minimise risk by adopting 3D printing technology. This allows companies to manufacture complex 3D metal parts in-house without relying on global logistics.

As such the total addressable market for 3D printing is estimated to be around US$10 billion. In the next 5 years (2026), the 3D printing market is forecasted to increase to US$63 billion.

AML3D share price snapshot

Regardless of today’s strong rise, AML3D shares are down almost 50% since the beginning of the year. When looking at the past 12 months, its shares have fared no better, down by more than 54%.

The company’s share price reached a 52-week high of 50 cents last September. This came on the back of its contract with Austal Limited (ASX: ASB) to co-develop components for maritime defence applications. However, since then its shares have continued on a downhill trajectory.

The post AML3D (ASX:AL3) share price leaps 20% on exciting development appeared first on The Motley Fool Australia.

More reading

• 2 exciting small cap ASX shares to watch
• Westpac (ASX:WBC)’s had a shocker: This is when to buy
• Here are the 3 most heavily traded ASX 200 shares so far on Tuesday
• Why is the Beach Energy (ASX:BPT) share price down 6%?
• Why the Sydney Airport share price has beaten the ASX 200 in the last 4 months

Motley Fool contributor Aaron Teboneras 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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At the small end of the market, there are a number of shares that have the potential to grow strongly in the future.

Two that could be worth watching very closely are listed below. Here’s what you need to know about these small cap ASX shares:

Booktopia Group Ltd (ASX: BKG)

Booktopia could be a small cap ASX share to watch. It is a rapidly growing online book retailer which shipped 8.2 million units to 1.8 million active customers in FY 2021. This was an increase of 26% and 19%, respectively, year on year.

The shift to online shopping and its new automated distribution centre were drivers of this growth. This ultimately underpinned a 35% lift in revenue to $223.9 million and a 125% jump in underlying EBITDA to $13.6 million.

Analysts at Morgans are very positive on the company’s outlook. They believe the company is well-placed to win market share and continue its growth. The broker currently has an add rating and $3.72 price target on Booktopia’s shares.

Infomedia Limited (ASX: IFM)

Another small cap ASX share to look at is Infomedia. It is a leading global provider of software-as-a-service solutions to the parts and service sector of the automotive industry.

Despite battling tough trading conditions in FY 2021, Infomedia still delivered a solid 3% increase in revenue to $97.4 million and an 8% lift in net profit after tax to $20 million.

Pleasingly, trading conditions are improving and management expects a much stronger performance in FY 2022. Its revenue guidance is $117 million to $123 million. The mid-point of this guidance range implies revenue growth of 23% year on year.

And while its CEO has just resigned to join Nuix Ltd (ASX: NXL), the company stressed that it remains on course to achieve the above guidance. In light of this, the share price weakness that has followed this announcement could be a buying opportunity for investors.

One broker that appears to see that as the case is Bell Potter. It currently has a buy rating and $2.00 price target on its shares.

The post 2 exciting small cap ASX shares to watch appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares having a shocker that could be bargain buys right now
• Why Audinate, Home Co Daily Needs, Infomedia, and Temple & Webster are falling
• Infomedia (ASX:IFM) share price sinks 14% on shock resignation
• 2 small cap ASX shares with a lot of potential
• 2 exciting small cap ASX shares analysts rate highly

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. owns shares of and has recommended Infomedia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Booktopia Group Limited and Nuix Pty Ltd. The Motley Fool Australia has recommended Infomedia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Westpac Banking Corp (ASX: WBC) shares this week have suffered one of the most spectacular falls seen for an ASX large cap in “peacetime”.

On Tuesday afternoon, the bank stock had plunged 3%, bringing the total loss in just one-and-a-half days to 10.4%.

Ouch.

Investors were trampling over each other to flee the building after Westpac’s results on Monday disappointed the market.

Macquarie, Goldman Sachs, Bell Potter and Morgan Stanley analysts all cut their target stock prices after the announcement.

But the company remains one of Australia’s big four banks, with a market capitalisation of $84.7 billion.

At current share prices, it’s giving out a dividend yield of 3.86% which will head up even more after this month’s 60 cent payout.

So, is it now getting to a point where the share price might offer a bargain pickup?

Be patient if you want to pick up Westpac shares

Market Matters portfolio manager James Gerrish reckons it’s not quite time to pounce on Westpac shares yet.

“The positives of a $3.5 billion buyback and 60c fully franked dividend couldn’t mask the issues under the hood,” he said in a subscriber newsletter.

“Higher costs and weaker margins are an unhealthy combination but there is a turnaround underway, it simply comes down to whether or not we believe it’s making sufficient progress.”

Gerrish’s team is keeping a close eye to see if Westpac shares can sink to $23.

“We have been targeting the $23 as an optimum area to buy WBC and that still looks reasonable,” said Gerrish.

“Another 3% to 3.5% lower and we see value plus an enticing dividend of around 5%.”

If you’re interested, you may not have to wait long. 

The share price has continued to fall even after Gerrish made those comments on Tuesday morning. Westpac shares started the day at $23.78 but already sat at $23.06 in the afternoon.

The bank will begin its share buyback on 17 November, while it will go ex-dividend on Monday for payment on 21 December.

This week’s bloodbath was as much a case of unfulfilled lofty expectations as it was poor performance.

Multiple analysts had rated Westpac as a “buy” last month, expecting attractive numbers, dividend and buyback.

The post Westpac (ASX:WBC)’s had a shocker: This is when to buy appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares so far on Tuesday
• Why Ingenia, IAG, Vulcan, and Westpac shares are dropping
• ASX 200 (ASX:XJO) midday update: Netwealth’s merger proposal, IAG sinks
• Why this top broker downgraded Westpac (ASX:WBC) shares
• 5 things to watch on the ASX 200 on Tuesday

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The S&P/ASX 200 Index (ASX: XJO) is having a pretty disappointing day of trading so far this Tuesday. At the time of writing, the ASX 200 is down by 0.33% at 7,346 points. But let’s dig a little deeper and see which ASX 200 shares are topping the trading volume charts today so far, according to investing.com.

3 most active ASX 200 shares by volume

Fortescue Metals Group Limited (ASX: FMG)

ASX 200 iron ore miner Fortescue is our first share topping the volume charts so far this Tuesday. At the time of writing, this miner has seen a sizeable 15.14 million of its shares change owners today.

This appears to be a result of the nasty share price slide Fortescue shares are experiencing today. Currently, this iron ore giant is down 2.65% at $13.95 a share, which is probably causing so many Fortescue shares to be traded on the markets today. Fortescue is now down more than 40% in just 3 months.

Westpac Banking Corp (ASX: WBC)

ASX 200 banking giant Westpac is our next cab off the rank. Westpac has, so far today, seen a lofty 15.6 million of its shares bought and sold.

Like Fortescue, this appears to be the result of a large share price loss this bank has endured so far today. At the time of writing, Westpac shares are down by 2.52% at $23.18 each. My Fool colleague James posted this morning that this could be a reaction to some tough love from broker Goldman Sachs.

Whitehaven Coal Ltd (ASX: WHC)

Our third and final ASX 200 share to check out today is coal miner Whitehaven. Whitehaven has seen a whopping 21.82 million of its shares swap hands thus far this Tuesday. There is no major news or announcements out of Whitehaven today.

However, that hasn’t stopped yet another major sell-off of this company. At the present time, Whitehaven is down a painful 7.4% to $2.42 a share. It’s this slide that is likely responsible for such a high volume of shares trading today. This company’s losses over just the past month are now approaching 30%.

The post Here are the 3 most heavily traded ASX 200 shares so far on Tuesday appeared first on The Motley Fool Australia.

More reading

• Why Ingenia, IAG, Vulcan, and Westpac shares are dropping
• ASX 200 (ASX:XJO) midday update: Netwealth’s merger proposal, IAG sinks
• This broker thinks the Fortescue (ASX:FMG) share price is dirt cheap
• Why this top broker downgraded Westpac (ASX:WBC) shares
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Sebastian Bowen 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Shares in oil and gas explorer Beach Energy Ltd (ASX: BPT) are inching lower today and are currently trading 6% down at $1.31 apiece.

Beach Energy shares have spent most of the day in the red after the company announced the departure of its chief executive.

Here are the details.

What was announced?

Beach advised today that its managing director and CEO Matt Kay tendered his resignation to the company’s board.

Kay is leaving Beach to pursue other professional opportunities, given Beach’s ‘current strong position’ as per the release.

In his place, the company has appointed the current chief financial officer (CFO) Morné Engelbrecht to CEO as the search for a replacement gets underway.

In the six years of tenure as CEO of the company, Kay oversaw the acquisition of Lattice Energy and the commencement of development programs in the Victorian Otway and Perth Basins.

Kay’s final oversight was the sanctioning of the Moomba Carbon Capture and Storage project announced by the company yesterday.

Speaking on the announcement, Beach Energy chair Glenn Davis paid homage to Kay on the grounds of leadership and delivering on the company’s growth ambitions.

Davis said the departing CEO was instrumental in “helping transform Beach into the multi-billion basin upstream oil and gas company it is today”.

Davis also said that interim CEO Engelbrecht was “well positioned to take over as acting CEO as Beach completes its gas growth program”, with over 20 years experience across various jurisdictions.

What did the departing CEO say?

Speaking on the announcement, departing CEO Matt Kay said:

I was brought on board to help Beach grow from a single basin operator and diversify the business. This was
capped off by the sanctioning of the Moomba Carbon Capture and Storage project this week.

Kay continued:

I want to thank the entire Beach team for their efforts over the past six years. The company’s future is extremely
bright and I wish Morné and the team all the best.

Beach Energy share price snapshot

The Beach Energy share price has been swimming in a sea of red this year to date, having posted a loss of 26% since January 1.

Despite this, it has climbed 16% in the past 12 months, but not enough to outpace the benchmark S&P/ASX 200 index (ASX: XJO)’s gain of around 25% in the same time.

The post Why is the Beach Energy (ASX:BPT) share price down 6%? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Why ASX 200 energy shares are tanking on Thursday
• 5 things to watch on the ASX 200 on Wednesday
• Could the Beach Energy (ASX:BPT) share price hit $1.70 by Christmas?
• 5 things to watch on the ASX 200 on Tuesday

The author Zach Bristow has no positions 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Sydney Airport (ASX: SYD) share price is shaking off the wider market selling pressure today.

At the time of writing, Sydney Airport shares are up 0.73% in afternoon trade, at $8.26 per share. The S&P/ASX 200 Index (ASX: XJO), on the other hand, is in the red, down 0.33%.

And that trend is nothing new.

In fact, over the past 4 months, the Sydney Airport share price has trounced the returns from the benchmark index.

Here’s why.

What’s been boosting the the Sydney Airport share price?

On 2 July, 4 months ago today, the airport’s shares opened at $5.81. At the current Sydney Airport share price of $8.24, that represents a gain of 42%. Very tidy!

Over that same period, the ASX 200 is up a slender 0.2%. While that is in positive territory, the ASX 200 has come under pressure from some of its bigger constituents since the start of July. Most notably the big miners, which have seen their shares falling amid sinking iron ore prices.

The Sydney Airport share price, on the flip side, has enjoyed a few healthy tailwinds.

Foremost among those is the series of takeover offers the airport has received, commencing on 5 July. On that day the company announced a consortium of infrastructure investors from IFM Investors, Global Infrastructure Management, and QSuper had offered a $22.6 billion all-cash transaction to acquire its assets.

The offer worked out to roughly $8.25 per share at a time when Sydney Airport’s shares were trading for a lowly $5.81.

As you might expect, news of the offer saw the Sydney Airport share price soar more than 37% in intraday trading.

The airport’s management rejected the offer though, saying it was still below its pre-pandemic highs of $8.86 per share.

Since then, other takeover offers have been floated, helping support the share price.

The other clear factor supporting all ASX travel shares in recent months has been the rapid rollout of the COVID-19 vaccine across Australia.

With double vaccination rates now close to 80%, international travel (with restrictions) is back on the menu for Aussies over the upcoming holidays. And there should be plenty of pent-up demand both for incoming and outbound air travel.

How has Sydney Airport performed longer-term?

Over the past 12 months, the Sydney Airport share price has gained 45%. That, again, beats the 24% returns posted by the ASX 200 in that same time.

So far in 2021, Sydney Airport shares are up 29%.

The post Why the Sydney Airport share price has beaten the ASX 200 in the last 4 months appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts this Tuesday
• Why is the Sydney Airport (ASX:SYD) share price struggling today?
• Why now could be the time to buy the Transurban (ASX:TCL) share price
• Sydney Airport (ASX:SYD) share price slides on takeover update
• Own Sydney Airport (ASX:SYD) shares? Here’s the latest development on the takeover bid

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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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ASX biotech shares posted a month of solid gains in October, outpacing the wider market as a whole.

For instance, the S&P/ASX 300 Pharmaceuticals & Biotechnology Index (ASPBKD) climbed around 6% after a sharp decline to start the month, indicating strengths in the broad sector.

Within this group lies a substratum of winners that we cover here in greater detail.

Here are three of the top performing ASX biotech shares for the month of October.

Telix Pharmaceuticals Ltd (ASX: TLX)

Oncology company Telix Pharmaceuticals climbed 15% across the month of September, surpassing many of its ASX biotech colleagues.

Telix shares gained momentum after the company presented peer-reviewed results from a Phase I/II study on its TLX101 drug candidate at the Congress of Neurological Surgeons Annual Meeting in the US.

According to Telix, its TLX101 compound is an “investigational therapeutic radiopharmaceutical being developed to treat glioblastoma (brain cancer)”.

The data was “delivered as a late breaking oral presentation” at the meeting, and readouts confirmed the study met its primary objective. That was to demonstrate safety and tolerability of the TLX101 candidate.

Aside from this, Telix also released its quarterly activities report for the three months ended 30 September 2021 last month.

In it, Telix showed it had enough cash to fund the commercial launch of its Illuccix label and to complete another phase 3 study known as ZIRCON, without having to raise more capital.

Telix shares gained 94 cents in the last weeks of October after these updates.

CSL Limited (ASX: CSL)

After a choppy year to date, shares in global biopharmaceutical and biotechnology giant CSL climbed over 6% or $17.71 per share across the month of October.

Shareholders weren’t immune to volatility however – the CSL share price came off a 6-month high of $312.99 to start the month and sunk to a low of $286.19, before regaining steam once again.

Whilst there was no price-sensitive information out of CSL’s camp in October, the opinion of some brokers appear to support its share price gains last month.

For instance, analysts at leading investment banking firm Morgans are bullish on CSL shares.

Morgans acknowledges that whilst FY22 will continue to present headwinds in CSL’s plasma collection, beyond this, the outlook appears positive. It also likes the company as a ‘core’ portfolio holding.

It has a $325 price target on CSL’s share price, implying an upside potential of almost 6% from the time of writing.

Not all brokers agree through – Goldman Sachs and JP Morgan recently retained their neutral/hold ratings on CSL shares respectively in recent updates.

Creso Pharma Ltd (ASX: CPH)

A series of market updates enticed investors to pile into cannabis-based biotech company Creso Pharma last month, sending its share price northwards again after a disappointing end to September.

After trading flat most of the month, shares in the ASX biotech company gained over 18% in the final days of October, bouncing off a low of 10 cents just a few weeks prior.

Creso reported it had purchased Canadian life sciences company ImpACTIVE on 25 October, on a valuation of $217,000, thereby expanding its footprint in North America.

A day later, the company released a ‘bonus issue prospectus’ relating to a series of bonus options to its shareholders.

The options are to “reward shareholders for supporting the company” as it were, however, are also a potential source of funding if exercised in the future.

Creso will receive 25 cents for every option exercised, which could mean they receive up to $99.9 million in this scenario.

In addition, the options can be bought and sold on any ASX exchange that allows the trading of derivative products.

The company also released its quarterly actives report to finish the month, generating a 92% year on year gain in revenue and saw growth across all its operating segments.

This sent Creso Pharma shares flying as we exited October, securing a tasty gain for investors.

These three ASX biotech shares were amongst the best performing names in October, although there were winners and losers across the board when zooming out across the sector.

The post Own biotech shares? These were the best performers during October appeared first on The Motley Fool Australia.

More reading

• Why Goodman, Praemium, Step One, and Telix shares are charging higher
• Here’s why the Telix (ASX:TLX) share price is charging 5% higher today
• CSL (ASX:CSL) share price lifts 2% amid US border patrol battle
• Own CSL shares? Here’s how the company actually makes money
• Top ASX shares to buy in November 2021

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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If you’re looking for a few new additions to your portfolio in November, then look no further.

Analysts at Morgans have picked out a number of ASX shares that they class as their best ideas for the month.

Below are two top ASX shares that the broker rates highly this month. They are as follows:

BHP Group Ltd (ASX: BHP)

Morgans is a fan of this mining giant for a number of reasons. This includes its valuation, strong balance sheet, and dividend profile. It also sees BHP as a low risk option in the resources sector for investors.

It explained: “We view BHP as relatively low risk given its superior diversification relative to its major global mining peers. The spread of BHP’s operations also supplies some defence against direct COVID-19 impact on earnings contributors. While there are more leveraged plays sensitive to a global recovery scenario, we see BHP as holding an attractive combination of upside sensitivity, balance sheet strength and resilient dividend profile.”

Morgans currently has an add rating and $46.05 price target on BHP’s shares. This compares to the current BHP share price of $35.65.

ResMed Inc (ASX: RMD)

Another ASX share for investors to consider is ResMed. Morgans is a fan of this sleep treatment focused medical device company due partly to its positive long term outlook.

Morgans commented: “While we believe the next few quarters will likely be volatile, as COVID-related demand for ventilators continues to slow and core sleep apnoea volumes gradually lift, nothing changes our medium/longer term view that the company remains well-placed as it builds a unique, patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain.”

Its analysts have an add rating and $40.80 price target on the company’s shares. This compares to the latest ResMed share price of $35.22.

The post Top broker names 2 of the best ASX share ideas for November appeared first on The Motley Fool Australia.

More reading

• Why did the BHP (ASX:BHP) share price go backwards in October?
• Why Advanced Human Imaging, ResMed, Western Areas, and Westpac are falling
• Leading brokers name 3 ASX shares to buy today
• The Resmed (ASX:RMD) share price is falling 5% on Monday. Here’s why
• These are the 10 most shorted ASX shares

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 recommended ResMed. The Motley Fool Australia has recommended ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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After an initial pop this morning, the S&P/ASX 200 Index (ASX: XJO) is deep in the red so far this Tuesday, currently down 0.34% at 7,345 points. In stark contrast, the Woolworths Group Ltd (ASX: WOW) share price is enjoying some healthy gains today. Woolworths shares are currently up by 1.44% to $38.72 a share at the time of writing.

But zooming out a little, and the picture is far less cheerful. Woolworths shares are now down just over 5% from where they started last Tuesday’s trading session at. That’s a pretty steep fall for just one week. Especially for an ASX 200 blue-chip stalwart like Woolies.

So what’s going on with this grocery giant to cause it to have such a poor week?

We can probably lay most of the blame on Woolworths’ quarterly earnings update that the company released last Wednesday. For the 14 weeks ending 3 October, the company reported a 7.8% increase in sales year on year to $16.07 billion. That included $1.88 billion in e-commerce sales, a 53.5% jump over last year’s figures.

That all sounds positive. But what really seemed to have spooked investors and led to a drop in the Woolworths share price was management’s commentary:

Q1 F22 has arguably been the most challenging COVID quarter for our business, with the Delta variant causing major disruptions to our supply chain and stores, especially in NSW and Victoria…

While the outlook remains uncertain, and there is likely to be challenges in the weeks ahead, we are excited about helping our customers celebrate a much needed festive season in an inspirational, safe and enjoyable way.

After this update was released, the Woolworths share price fell roughly 2.5% and has yet to recover.

Could the Woolworths share price be a buy today?

With this significant pullback in the Woolworths share price, some investors might be wondering if it’s a good time to buy. Well, reception to this trading update was less than well-received by expert investors.

As my Fool colleague James covered last week, broker Credit Suisse wasn’t impressed with what Woolies had to say. It retained an ‘underperform’ rating on the company, with a 12-month share price target of $31.84. Credit Suisse simply thinks the company’s shares are overvalued at their current pricing. It also expects it to face some tightening profit margins.

At the current Woolworth share price, this company has a market capitalisation of $46.15 billion. It also has a price-to-earnings (P/E) ratio of 31.1 and a dividend yield of 2.8%.

The post Here’s why the Woolworths (ASX:WOW) share price is down 5% in a week appeared first on The Motley Fool Australia.

More reading

• Is the Woolworths (ASX:WOW) share price a buy in November 2021?
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Motley Fool contributor Sebastian Bowen 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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