It hasn't been a great start to the week for the S&P/ASX 200 Index (ASX: XJO) so far this Monday. At the time of writing, the ASX 200 has shed another 0.6%, leaving the index at around 7,170 points. But it's been even worse for the Woolworths Group Ltd (ASX: WOW) share price.
Woolworths shares are really having a clanger today. The ASX 200 supermarket giant has lost a painful 1.1% so far this session, leaving it at $34.08 a share:
So why is the Woolworths share price underperforming so dramatically this Monday?
Well, it's not really clear. There hasn't been any ASX news or announcements out of the company directly today that would conveniently explain this loss.
However, we can note that Woolies isn't the only ASX 200 consumer staples share feeling the pain today. The company's arch-rival Coles Group Ltd (ASX: COL) is also feeling the heat. The Coles share price is presently down by just under 1%.
Metcash Limited (ASX: MTS), the owner of the IGA network, has lost 0.7%. So not a great day for consumer staples shares in general, it would seem.
However, there are some rumours flying around today that do involve Woolworths. These could well be influencing the sell-off we are seeing with the company's shares.
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Why is the Woolworths share price waning today?
As my Fool colleague James flagged this morning, there is speculation that Woolies could be about to make a major new acquisition. The company is reportedly "close to signing an agreement" to acquire pet supplies company Petstock.
This would be a massive shakeup for Woolworths, and will likely come with a big price tag as well, considering Petstock's established presence in the pet supply market.
So this could well be influencing Woolworths shares today as well. If that is true, it seems investors aren't too enthused. But we shall have to wait and see if anything concrete comes from these rumours.
One ASX expert licking their lips over the falling Woolworths share price today could well be Goldman Sachs.
As we covered this afternoon, Goldman has recently come out with a conviction buy rating on Woolworths shares, complete with a 12-month share price target of $41.70. If realised, that would result in an upside of more than 22% from the current share price.
Goldman reckons Woolies has a "clear growth pathway" over the next few years and is looking attractive at the current share price, particularly after the falls we have seen recently.
So no doubt this ASX broker is greeting the falls we are seeing today with excitement.
At the current Woolworths share price, this ASX 200 consumer staples giant has a price-to-earnings (P/E) ratio of 27.4, with a trailing dividend yield of 2.7%.
