The Wesfarmers Ltd (ASX: WES) share price continued its positive run on Monday with another gain.
This saw the conglomerate's shares climb to a new 52-week high of $52.39 at one stage.
When the Wesfarmers share price reached that level, it was up approximately 14% year to date. This compares very favourably to the ASX 200 index, which is up a more modest 5% in 2023.
Why is the Wesfarmers share price on fire right now?
Investors have been buying the Bunnings and Kmart owner's shares this year for a few reasons.
One is its defensive qualities in the current uncertain economic environment. Given how its businesses tend to perform well whatever is happening in the economy, Wesfarmers is often seen as a safe option for investors.
This is perhaps more the case than ever thanks to its focus on value. This could prove particularly important as budgets get squeezed from the cost of living crisis.
Another reason could be news that the company has been selling down its Coles Group Ltd (ASX: COL) stake. Wesfarmers is understood to have sold what's left of its stake for approximately $700 million.
This gives it some serious firepower to make a new acquisition. Though, it is unclear what the company might have its eyes on.
Anything else?
A couple of bullish broker notes are likely to have also given the Wesfarmers share price a lift this year.
For example, both Morgans and UBS have put the equivalent of buy ratings and $55.50 price targets on its shares.
This even suggests there's still room for its shares to rise a bit further from here. So don't be surprised if the Wesfarmers share price finds itself trading at a new 52-week high in the near future!
