Down 20% so far this year, are Wesfarmers shares now a no-brainer buy?

Are Wesfarmers shares too cheap to ignore?

It's been a tough year for ASX shares and the S&P/ASX 200 Index (ASX: XJO) in 2022, to be sure. Year to date, the ASX 200 remains down by a depressing 5.39%.

Time is certainly running out if the ASX 200 wants to post a gain for this year. But that loss is nothing compared to the Wesfarmers Ltd (ASX: WES) share price.

Wesfarmers has long been an ASX 200 blue-chip share. It was also one with a reputation for stability. Until this year:

Today, Wesfarmers is going for $47.75 a share as of market close, down 0.35% for the day. At this price, Wesfarmers shares are now down by a painful 20.4% year to date in 2022. That's a loss nearly quadruple what the ASX 200 Index has given investors.

And we are certainly a long way from the all-time record high of more than $66 a share that we saw in August of last year.

So with all of this pain now under 2022's bridge, what's next for Wesfarmers shares? Could these late throes of 2022 be a good time to pick up some shares at a price 20% lower than we could at the start of the year?

Let's see what some of the ASX's expert investors reckon.

A woman peers through a bunch of recycled clothes on hangers and looks amazed.

Image source: Getty Images

Are Wesfarmers shares a buy today? Here's what two brokers say

One ASX broker who thinks Wesfarmers shares are a bargain at the current price is UBS. As we covered last month, UBS gave Wesfarmers an add rating, replete with a 12-month share price target of $56. If realised, that would give investors a pleasing upside of 17% from where the shares are today.

UBS is anticipating that Wesfarmers' core retail businesses, such as Kmart and Bunnings, are performing well in the current environment. The broker even predicts that these businesses could grow their market share from here.

But UBS isn't the only broker eyeing off Wesfarmers right now. Morgans is also bullish on the retail and industrial conglomerate. It has a slightly lower share price target of $55.60 on the Wesfarmers share price.

Morgans notes Wesfarmers has been enjoying strong retail conditions and thinks the company is a solid long-term buy at the current level. So it's fair to say that more than one ASX expert investor is eyeing off the Wesfarmers share price this December.

But we'll have to see what 2023 brings for this ASX 200 blue-chip stalwart

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 positions in and has recommended Wesfarmers. 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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