3 reasons why Westfield Group is soaring higher

The stock is up 12% in just over 5 months!

a woman

You鈥檙e reading a free article with opinions that may differ from The Motley Fool鈥檚 Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Shareholders of global shopping centre giant Westfield Group (ASX: WDC) have had to remain patient in recent years with their shares significantly underperforming the broader S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO). However, the shares seem to be on the rise and are currently sitting at $10.83, which is 12% above its December low of $9.67.

Here are three reasons why Westfield Group is marching higher:

  1. Given the rapid rise of the online retail sector, investors have approached the brick-and-mortar retail industry with caution. However, Westfield Group has a strong focus on improving its balance sheet by divesting non-core assets and redeveloping its more iconic stores. This should boost earnings in the long-run.
  2. Speaking of redeveloping centres, it is currently in the process of sprucing up its World Trade Centre store, in New York, as well as Westfield London and the Croydon mall. These three centres are poised to be amongst the Group鈥檚 greatest assets and offer great exposure to the recovering US and UK economies.
  3. Shares in Westfield Group were also restricted due to uncertainty over the merger proposal with Westfield Retail Trust (ASX: WRT). However, the terms of the deal have been adjusted, albeit in Westfield Retail Trust鈥檚 favour, which has lessened investor uncertainty.
Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned.

More on 鈴革笍 Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more

woman holds sign saying 'we need change' at climate change protest

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
鈴革笍 Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
鈴革笍 Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more

asx share price competitions represented by businessmen arm wrestling
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more

asx investor daydreaming about US shares
鈴革笍 How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more

person reading news on mobile phone
鈴革笍 Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more