Wesfarmers (ASX:WES) share price climbs 10% in a month amid 'favourable momentum'

The Wesfarmers share price continues to climb today amid strong consumer interest in its biggest retail brands.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s 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

The Wesfarmers Ltd (ASX: WES) share price continues to climb today, adding to strong gains this past month.

At the time of writing, the Wesfarmers share price is up 0.5% to $55.94 per share, putting its gains over the past month at just under 10%.

Wesfarmers is a diversified Australian business with broad business operations including home improvement and outdoor living, apparel and general merchandise, office supplies; and an industrials division with businesses in chemicals, energy and fertilisers, and industrial and safety products.

From its origins in 1914 as a Western Australian farmers' cooperative, Wesfarmers has grown into one of Australia's largest listed companies trading on the ASX. Headquartered in Perth, Western Australia, Wesfarmers subsidiaries include household names such as Bunnings Warehouse, Kmart Australia, Officeworks and more.

Strong online search interest

The company's strong performance online is one factor that could have provided the impetus for the Wesfarmers share price's 10% gains this past month. 

Recent research from Macquarie looked at Google Trends data and found that Wesfarmers-owned Kmart leads in digital interest in home retail. Similarly, Wesfarmers-owned hardware giant Bunnings leads online hardware searches.

Bunnings has become a retail goliath in Australia with little clear competition since the demise of Woolworths (ASX: WOW) -owned Masters.

As the Motley Fool reported earlier this month, Wesfarmers has an enviable position with its brand stable. Bunnings is Australia's leading hardware retailer, Officeworks is the leading office supplies retailer, Kmart is the leading discount retailer.

Meanwhile, Wesfarmers' would-be Australian online Amazon-rival, Catch, is expanding as an online retailer. 

However, while online search interest in Bunnings and Kmart has been strong, interest has fallen over recent months in both Catch and Officeworks, which both showed heightened interest in the November to January period.

"Wesfarmers has seen favourable momentum in Bunnings and Kmart for online search activity as value remains a key driver for consumers," Macquarie said, as quoted by News.com.au.

"As expected, Easter long weekend led to heightened search interest, as people continue home-improvement projects."

Wesfarmers share price snapshot

Wesfarmers hasn't released a price-sensitive market update since its 2021 half-year FY21 report on 18 February, where it announced a 16% increase in total revenue.

The Wesfarmers share price has continued to rise steadily though, adding 3% the past week and 10% the past month, creating a 46% gain over the past 12 months.

Motley Fool contributor Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers Limited and Woolworths Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

rising gold share price represented by a green arrow on piles of gold block
Share Gainers

Here are the top 10 ASX 200 shares today

It was a horrible way to end the trading week today for ASX investors.

Read more »

Piggy bank sinking in water symbolising a record low share price.
52-Week Lows

9 ASX 200 shares tumbling to 52-week lows today

Israel's strike on Iran on Friday dragged several ASX 200 shares to new depths.

Read more »

Female miner smiling at a mine site.
Share Gainers

Up 834% in a year, guess which ASX mining stock is hitting new all-time highs today

The ASX mining stock has gone from strength to strength over the past year.

Read more »

Broker written in white with a man drawing a yellow underline.
Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why COG, Karoon Energy, Netwealth, and Pilbara Minerals shares are dropping today

These ASX shares are ending the week deep in the red. But why?

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Fiducian Group, Northern Star, Paradigm, and Santos shares are charging higher

These shares are avoiding the market selloff.

Read more »

Dollar sign in yellow with a red falling arrow in front of a graph, symbolising a falling share price.
Share Market News

Why did the ASX 200 just sink to new 2-month lows on Friday?

It’s been a rocky week for the ASX 200. But why?

Read more »

Woman looking at a phone with stock market bars in the background.
Opinions

I'm buying these quality ASX shares to capitalise on the decline

These are the shares I'd buy if the markets get any worse.

Read more »