Is the Coles Group Limited (ASX: COL) share price a buy right now? It could soon report large revenue growth during the past couple of months due to the coronavirus.
It's obvious that supermarkets have been selling a lot more than usual. But according to data from the Australian Bureau of Statistics (ABS), supermarkets have been extremely buoyant.
Whilst overall retail sales increased by 8.2%, there was even stronger growth of 22.4% for supermarket and grocery turnover. Clearly all of that consumer stocking up is going to help the top line and the Coles share price.
The ABS said that "monthly turnover doubled for products such as toilet and tissue paper, and rice and pasta." Spending on canned food, medicinal products and cleaning products increased by more than 50% according to ABC reporting.
Is the Coles share price a buy?
Since 21 February 2020 the Coles share price is essentially flat. But it has been fairly volatile between mid-February and now.
Only time will tell whether this period has simply brought forward revenue or whether it genuinely is a boost for earnings and the Coles share price. One thing is for sure, with most cafes and restaurants shut it means more people are getting their food from supermarkets, even if there wasn't any panic buying.
I like Coles' strategy of trying to be the most sustainable supermarket whilst improving its private label offering. This should be good for the long-term.
It's probably going to remain a reliable dividend share during this period because its earnings have held up well. But I think a better idea could be to buy growth shares that are now better value after falling.
