Last month the share price of supermarket giant Woolworths Limited (ASX: WOW) hit an all-time high of $38.92. Since then, the stock has fallen roughly 1.3% against a fall in the broader S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) of 0.9%.
While the shares are still close to their record high, investors are now asking themselves if the stock will re-test those highs anytime soon…
As outlined here, in the long-term, Woolworths' share price will almost certainly be higher, as the retail market leader continues to grow and expand.
One competitor Metcash Limited (ASX: MTS), is struggling to adjust its cost structure and compete against a rejuvenated Coles and Woolworths. Unlike Wesfarmers Ltd (ASX: WES), whose diversified strategy is being called into question, Woolworths is well placed to continue to grow and prosper at the very least, in line with Australia's growing population and economy.
The world class profit margins and growth opportunities from the entry into hardware and cross-selling of services to its customer base, provide a number of reasons to expect Woolworths' shares will hit new all-time highs in the future.
