Wesfarmers Ltd (ASX: WES) shares had a good month over July. No, a phenomenal month. There is no other word for it. The ASX 200 blue-chip stock and industrial and retailing conglomerate began July at $65.18 a share.
But by the time trading wrapped up yesterday, those same shares had closed at $73.65. That's a gain worth an extraordinary 12.99%.
Incidentally, Wesfarmers shares hit a new all-time high of $74.04 a share just today. But we'll have to wait and see what the rest of August brings for the company.
Wesfarmers' July performance was extraordinary in a few ways. Firstly, it certainly is not normal for an ASX blue-chip share like Wesfarmers to add 13% to its market capitalisation over just one month. If the company kept up that kind of monthly return for a whole year, its shares would enjoy an annual gain of just over 333%.
But secondly, Wesfrmers smashed the broader market by more than a factor of three. Yes, over July, the S&P/ASX 200 Index (ASX: XJO) appreciated by a very respectable 4.2% in its own right. That in itself is a stunning performance.
But the fact that Wesfarmers shares more than tripled that gain illustrates what an incredibly successful July Wesfarmers investors have just enjoyed.
Check it out for yourself below:
What's next for Wesfarmers shares?
Rather strangely, it's not quite clear why Wesfarmers shares had the fantastic month that they did. There was only one significant ASX announcement out of the company last month.
As we covered at the time, this revealed the appointment of Kate Munnings to the Wesfarmers board. Munnings has extensive experience in the healthcare field. She had been chief operating officer of Ramsay Health Care Ltd (ASX: RHC) between 2016 and 2020, as well as taking the role of CEO at the old Virtus Health.
Good news to be sure, but arguably not a reason for Wesfarmers shares to rocket 13% higher last month.
Even so, what's done is done, and shareholders will no doubt be feeling very chuffed with their company's recent performance.
However, at least one ASX broker doesn't seem to think that this ASX 200 stock has too much gas left in the tank.
Last month, my Fool colleague James covered broker Goldman Sachs' view on Wesfarmers. Goldman put up a 'neutral' rating on Wesfarmers at the time, together with a 12-month share price target of $68.80. That would obviously see Wesfarmers shares stagnate over the coming 12 months if accurate.
At the time, Goldman noted the inherent quality of Wesfarmers as a business, but stated that "WES in our view is now fairly priced to reflect these growth prospects. We are Neutral rated on the stock".
Let's see if Goldman is on the money. Only time will tell.
