Why did the Woolworths (ASX:WOW) share price have such a great month in November?

Woolworths’ shares WOWed the market last month…

| More on:
A laughing woman pushes her friend in a supermarket trolley

Image source: Getty Images

November was a quiet month for Woolworths Group Ltd (ASX: WOW), although its share price managed to clock up an extra 7.2%.

Over the course of the month, Woolworths’ stock grew from $38.08 at its final close of October to finish November trading at $40.82.

For context, the S&P/ASX 200 Index (ASX: XJO) slipped 0.92% over the same period.

There wasn’t a lick of price-sensitive news from the supermarket giant last month. However, there were a few factors that might have boosted its shares’ value.

A month of gains for the Woolworths share price

The first happening that likely impacted the Woolworths share price in November actually occurred in late October.

Then, the company released its earnings for the first quarter of financial year 2022.

Woolworths reported its supermarket leg had boomed during lockdowns affecting much of Australia and New Zealand over the 3 months ended 30 September.

Though, its Big W business saw sales tumble 18% year-on-year.

The company’s CEO Brad Banducci said the period was the most challenging COVID-19-impacted quarter so far for the company.

Over the 3 days following the release of its results on 27 October, the Woolworths share price tumbled 5.9%. Thus, it started November in a dip. That was probably favourable to the stock’s performance last month.

The supermarket also made a few moves towards becoming a ‘greener’ business in November.

It launched a BYO container program in all its Tasmanian stores and one Queensland store.

Customers of those stores can now bring their own storage solutions for products from Woolworths’ deli, meat, and seafood counters, avoiding the single-use plastic containers and wrappings dispensed by the supermarket.

The launch followed a single store trial in 2020 and more stores will follow suit in New South Wales and Victoria next year.

Woolworths also ditched single-use plastic cutlery, cups, bowls, and plates from its shelves last month.

As of the end of November, the Woolworths share price was 20.45% higher than it was at the start of 2021.

It has since dipped 0.5% amid its takeover bid for Australian Pharmaceutical Industries Ltd (ASX: API).

Should you invest $1,000 in Woolworths right now?

Before you consider Woolworths, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Woolworths wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Retail Shares

a woman leans on her shopping trolley as she rests her chin in her hand as if thinking as she stands in the middle of a grocery supermarket shopping aisle with a serious look on her face.
Retail Shares

Could this help Woolworths (ASX:WOW) withstand the current climate of uncertainty?

Key points The Woolworths share price jumped 3.53% on Friday The supermarket giant has been recognised as the most valuable …

Read more »

A man stands in his shed holding a cordless drill from Bunnings
Retail Shares

Own Wesfarmers (ASX:WES) shares? 2 of its major businesses are wearing new crowns

Key points Wesfarmers-owned Bunnings named Australia’s No. 1 brand and Officeworks No. 3 The titles – given out annually by …

Read more »

a man in a business suite throws his arms open wide above his head and raises his face with his mouth open in celebration in front of a background of an illuminated board tracking stock market movements.
Broker Notes

Broker sees 42% upside for the Accent (ASX:AX1) share price

The Accent Group Ltd (ASX: AX1) share price is under pressure again on Thursday. In afternoon trade, the footwear retailer’s …

Read more »

adore beauty share price
Retail Shares

Cettire (ASX:CTT) share price gains on new $100b potential market

Key points The Cettire share price is 1.36% higher this morning, trading at $2.99 The gain follows news the luxury …

Read more »

ASX 200 retail shares a woman smiles over the top of multiple shopping bags she is holding in both hands up near her face.
Retail Shares

Premier (ASX:PMV) share price jumps 9% after solid growth despite losing 42,000 trading days

Key points Premier Retail had a better half than most retailers despite losing 42,000 trading days Strong performances from Peter …

Read more »

a pile of colourful trainer shoes and sandshoes fashioned to look like a large shoe.
Retail Shares

The Accent (ASX:AX1) share price is down 17% this year, is it a buy?

Key points The Accent share price has been falling this year COVID impacts are hurting the retailer’s trading Management are …

Read more »

A smiling woman compares broker fees on her laptop and mobile phone.
Broker Notes

Broker says Adairs (ASX:ADH) share price is cheap after selloff

Key points Adairs shares were sold off this week following the release of a trading update While its sales were …

Read more »

shoes asx share price represented by white shoes against pink and blue background AX1 share price downgrade
Retail Shares

Why is the Accent (ASX:AX1) share price backtracking today?

Key Points Accent shares fall after trading update fails to impress investors Trading conditions impacted by Omicron variant EBIT forecasted …

Read more »