Why is the Temple and Webster share price surging 11% higher today?

The ASX retail share has strengthened this week, but there's a long way to go.

| More on:
Happy couple doing online shopping.

Image source: Getty Images

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

Key points

  • The Temple and Webster share price is soaring almost 11% on Friday as investors buy in at its lows
  • Consumer discretionary shares have strengthened this week as well 
  • In the last 12 months, the Temple and Webster share price has lost 63% 

The Temple & Webster Group Ltd (ASX: TPW) share price is rocketing 10.79% higher to $3.80 in afternoon trade on Friday.

Investors have pushed the share higher despite no news from the online furniture retailer.

Meanwhile, the S&P/ASX 300 Retailing Index (AXRTKD) is 0.6% down after posting gains this week.

What's up with the Temple and Webster share price?

The Temple and Webster share price has leapt higher this week after coming off a down period, and is now up more than 19% since last Friday's close.

Zooming out, and investors have been selling their positions since 31 August year.

Since then, the company's shares have tumbled from a high of $14.71 to hit 52-week lows last week.

However, the ASX retail share found buyers at this level, which has seen it jump to its current price.

In broad sector moves, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) has also turned course this week and is lifting another 1% today. It has now gained more than 4% since last Friday's close.

Investors look to have bought in at the sector's lows, possibly chasing some cheap stocks with fundamental strength.

However, the Temple and Webster share price has a way to go to return to its former highs. It's down more than 64% this year to date, and has slid more than 12% over the past month.

In the last 12 months, it has lost 63% of its value, bringing it back to January 2020 levels. This is best seen on a five-year chart, below.

TradingView Chart

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Retail Shares

A man eases back onto his sofa, happy with the relaxed vibe from his furniture.
Retail Shares

Why I just sold half my shares in this ASX 300 stock even though I still love it!

I’m still a big fan of this business.

Read more »

Two fashionable asx investors dancing among confetti.
Retail Shares

2 'very high-quality' ASX retail shares with significant inside ownership

A fund manager has named two appealing stocks to own.

Read more »

A man sits on a bench atop a mountain with a laptop, making investments with a green ESG mind.
Earnings Results

ASX All Ords stock KMD tumbles as interim dividend cancelled

Investors are hitting the sell button on ASX All Ords stock KMD today.

Read more »

Close-up Of Empty Shopping Cart Near Person's Hand Using Calculator Over White Desk
Retail Shares

Better buy: Coles or Woolworths stock?

Which stock should go in the shopping basket?

Read more »

Person handing out $100 notes, symbolising ex-dividend date.
Retail Shares

Why did Super Retail shares drop after going ex-dividend?

This is the story behind the decline.

Read more »

Happy couple doing online shopping.
Opinions

Is it too late to buy after the Kogan share price rocketed 90% in a year?

Is this online retailer still an investment opportunity?

Read more »

Two people comparing and analysing material.
Retail Shares

Better buy in March 2024: Wesfarmers stock vs JB Hi-Fi stock

Which of these two retail heavyweights would be a better buy?

Read more »

A man eases back onto his sofa, happy with the relaxed vibe from his furniture.
Share Gainers

If you'd put $30,000 in this ASX retail stock 11 months ago, you'd have $116,000 now

When battered stocks make a comeback, it happens very quickly. Here's a prime example.

Read more »