It’s been a day of mild gains so far on the ASX share market. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) has put on a decent 0.24% and is almost back above 6,620 points. But it’s been an even better day for the Endeavour Group Ltd (ASX: EDV) share price.
Endeavour shares are currently doubling the performance of the broader market. The company has risen by 0.83% at $7.90 a share as it currently stands. But earlier today, Endeavour climbed as high as $7.96 a share. That happens to be this company’s new 52-week high.
Today’s share price moves mean that Endeavour shares are now up a pleasing 16.3% year to date in 2022 so far. The drinks giant is also up an even more pleasing 25.92% over the past 12 months. Since its spinoff from Woolworths Group Ltd (ASX: WOW) back in June 2021, Endeavour shares have now treated investors to a gain of 29.43%.
So good news for Endeavour investors all around. Some champagne might even seem appropriate.
Why are Endeavour shares hitting a new 52-week high today?
But why is this drinks company at an all-time high during such a tough time for ASX shares in general? Well, it could have something to do with the nature of this company. ASX shares have been experiencing some very potent bouts of volatility in recent months.
With concerns over inflation, rising interest rates and slowing economic growth, investors have been in a jittery mood for a while now. Indeed, the financial year just gone (FY2022) saw the ASX 200 index lose more than 10% of its value.
In uncertain times like these, investors often seek out the ‘safety’ of consumer staples shares like Endeavour. We all know that alcohol consumption is not a habit that people tend to put aside during tough economic times. Perhaps this is why the Endeavour share price has had so much love from investors in recent months.
Indeed, the company was recently named by Shaw and Partners portfolio manager James Gerrish as one of the ASX shares that are best placed to withstand an economic downturn.
Last month, broker Macquarie also named the Endeavour share price as one to watch over the next 12 months. This ASX broker has an outperform rating on Endeavour. It named the company’s defensive nature, as well as its “ability to generate a decent return on invested capital”, as reasons to consider Endeavour shares.
So perhaps these are the reasons why the Endeavour share price is reaching new 52-week highs today.
Whatever the cause may be, it’s certainly been a good day to own Endeavour shares.