Woolworths Group Ltd (ASX: WOW) shares are pushing higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) supermarket giant closed yesterday trading for $31.87. In early afternoon trade on Wednesday, shares are changing hands for $31.93 apiece, up 0.2% .
For some context, the ASX 200 is up 0.9% today, with investors favouring their buy buttons after yesterday's RBA interest rate cut.
Woolworths shares have also underperformed the benchmark over the medium term, gaining 1.6% over the past 12 months compared to the 7.3% one-year gains posted by the ASX 200.
Though that doesn't include the $1.36 a share in fully franked dividends Woolies paid out over this time. This sees Woolworths trading on a trailing yield of 4.3%.
Now, that's more than the 3.2% fully franked trailing dividend yield that rival Coles Group Ltd (ASX: COL) shares trade at.
But then Coles shares have surged 34.8% over the past year as it gained market share in the Aussie supermarket space.
Which brings us back to our headline question.
Should I buy Woolworths shares today?
Image source: Getty Images
Positive signs emerging for the ASX 200 supermarket giant
"This supermarket operator recently announced group sales of $17.3 billion in the third quarter of fiscal year 2025, up 3.2% on the prior corresponding period," said Seneca Financial Solutions' Arthur Garipoli (courtesy of The Bull).
"The result suggests positive signs are emerging, but a recovery will take time," he added.
But with a hold recommendation on Woolworths shares, he isn't ready to pull the trigger just yet.
According to Garipoli:
If WOW can successfully execute its strategy, sustain cost discipline, take market share from rival Coles and improve returns in its underperforming Big W business, then share price gains should follow suit.
What's been moving Woolworths shares?
Woolies reported its third-quarter results (Q3 FY 2025) on 1 May for the three months to 6 April.
Woolworths shares closed up 1.2% on the day, as investors reacted positively to the 3.2% year-on-year revenue increase, which Garipoli mentioned up top.
The company's eCommerce segment achieved much stronger growth, with sales up 15.7% from Q3 FY 2024 to $2.2 billion.
Big W, on the other hand, continued to drag on the overall performance of Woolworths shares. After a challenging quarter, management downgraded second-half (H2 FY 2025) guidance for Big W from a loss before interest and tax of $40 million to a loss of $70 million.
Commenting on the results on the day, Woolworths CEO Amanda Bardwell, said:
With only two months until the end of our financial year, we remain focused on the priorities set out in February which include improving our retail fundamentals in value, availability and range, simplifying the way we work and unlocking the full potential of the group.
