Will Woolworths Group Ltd outperform Coles again?

Credit: James Arboghast

Shares in supermarket giant Woolworths Group Ltd (ASX: WOW) are holding strong on the eve of the retailer’s half-year results announcement.

Opening today up 1.23% to $27.56 Woolworths is entering 52-week high territory, up from $26.63 at this time last year and well-recovered from their October 2017 dip of $24.54.

All eyes will be on the supermarket, department store, home improvement and petrol retailer as results are handed down for the half year ending December 31, 2017 tomorrow, with Woolworths managing to outperform Wesfarmers Limited (ASX: WES) supermarket rival Coles in every sales quarter since December 2016.

Wesfarmers announced its Coles business suffered a 14.1% profit slide to $790 million due to service investment costs, but market-expectations in Woolworths continue to hold strong against Coles.

Both Woolworths Group and Wesfarmers have been threatened by the expansion of German discount grocer Aldi in recent times, with Metcash Limited (ASX: MTS) also posing a threat through their IGA business.

But UBS brokers still put Woolworths as the top supermarket retail stock to buy out of the sector, with a neutral on Wesfarmers and Metcash.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Wesfarmers 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 Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.