Here’s how the Woolworths share price stacked up in April

The ASX 200 had a volatile April. But how did Woolies go?

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A customer and shopper in Woolworths supermarket

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Key points

  • The ASX 200 had a volatile month over April 
  • Woolworths shares have a reputation for safety and defensiveness 
  • So let's see if Woolies measured up last month... 

The S&P/ASX 200 Index (ASX: XJO) ended up having a pretty wild month over April. Over the month just gone, the ASX 200 got fairly close to breaking its all-time high before retreating towards the end of the month. In the end, the index gave investors a loss of 0.86% over the month just gone. But let’s see how the Woolworths Group Ltd (ASX: WOW) share price went.

As the largest consumer staples share on the ASX 200, many investors have an expectation of ‘safety’ for Woolworths shares. So it will be interesting to see how this grocery giant lived up to this reputation.

So Woolies started April at a share price of $37.26. By the end of the month, the Woolworths share price had grown to $38.51. That’s a gain of 3.35%, a very healthy outperformance of the broader market. And that’s not including the interim dividend investors received last month either. Woolies paid out its dividend of 39 cents per share, fully franked, on 13 April. This would have added another couple of percentage points to shareholders’ April returns too.

All in all, a relatively pleasing month for the Woolworths share price, you’d have to conclude.

Is the Woolworths share price a buy or a sell in May?

So now that April is under the old belt, and we’re now in May, many investors might be wondering if the Woolworths share price is a buy today.

Well, let’s see what one ASX broker reckons.

As my Fool colleague James covered just yesterday, broker Goldman Sachs is currently bullish on Woolies shares. This ASX broke currently rates Woolworths as a buy, with a 12-month share price target of $41.70. That would imply a further upside of almost 10% on current pricing over the next year.

Goldman was impressed with Woolworths’ latest quarterly update, which saw the company report year-on-year sales growth of 9.7%. The broker also noted that Woolies “gained market share both from value and volume perspective during the quarter”. Goldman is also anticipating that Woolworths will lift its dividends in FY2023 as well to $1.18 per share.

So more good news to come for Woolies if Goldman Sachs is to be believed.

At the current Woolworths share price, this ASX 200 blue-chip has a market capitalisation of $46.14 billion, with a dividend yield of 2.47%

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 Sebastian Bowen 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 Scott Phillips.

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