The Woodside Energy Group Ltd (ASX: WDS) share price has been on a downward trend now for almost a year.
On 15 September, shares in the S&P/ASX 200 Index (ASX: XJO) oil and gas stock closed the day trading for $38.39.
In intraday trading today, shares are down 1.2% at $27.13 apiece.
That's underperforming the 0.7% losses posted by the ASX 200 at this same time. Though it's right in line with the 1.2% decline of the S&P/ASX 200 Energy Index (ASX: XEJ).
Still, with today's losses factored in, the Woodside share price is now down a painful 29.5% since 15 September.
That lengthy and sharp decline is in sharp contrast to the ASX 200 energy stock's very strong performance over the previous three years.
How strong?
Well, brave investors who bought Woodside stock on 20 March 2020 would have been sitting on gains of 140.0% by 15 September 2023. And that's not including the very juicy, fully franked dividends paid out during this period.
So, the question before us now is, are Woodside shares still a 'falling knife'? Or is it time to wade in and buy the dip?
Image source: Getty Images
Is the Woodside share price good value now?
According to Christopher Watt, an investment advisor at Bell Potter Securities (courtesy of The Bull), the big recent fall in the Woodside share price offers an appealing opportunity.
"The recent share price pullback in this energy giant presents an attractive entry point for investors, in our view," Watt said.
Bell Potter has a buy rating on the ASX 200 energy stock.
Watt noted:
The shares have fallen from $30.59 on April 11 to trade at $27.45 on May 23. Although first quarter 2024 production fell by 7 per cent on the fourth quarter of fiscal year 2023, the company retained full year 2024 guidance of between 185 million and 195 million barrels of oil equivalent.
Woodside remains Australia's premier oil and gas exposure.
At its quarterly results, Woodside also reported its three top growth projects were progressing well.
CEO Meg O'Neill noted:
Significant progress was made in the period on our three major growth projects. Commissioning activities are now underway at the Sangomar project in Senegal, on track for first oil in the middle of this year.
Atop the potential for a rebound in the share price, Woodside also remains a top ASX 200 dividend stock.
Over the past 12 months, the company has paid out $2.16 a share in fully franked dividends.
At the current Woodside share price, that sees the stock trading on a fully franked trailing yield of 8.0%.
