Despite the Australian stock market coming off the boil this week, so far anyway, many ASX 100 stocks are still at elevated levels. Woolworths Group Ltd (ASX: WOW) is not one of those shares.
In stark contrast to other ASX 100 blue-chip stocks like Telstra Group Ltd (ASX: TLS), Wesfarmers Ltd (ASX: WES), National Australia Bank Ltd (ASX: NAB), and even Coles Group Ltd (ASX: COL), Woolworths shares are at levels we haven't seen in years today.
At the time of writing, the ASX 100 supermarket operator stock is down a chunky 1.7% this Wednesday, and is down to just $27.38 a share. That's after hitting a new 52-week low of $27.26 earlier this morning. Investors haven't seen Woolies shares this low in a very long time. Since 2019, to be precise.
Of course, the catalyst for this latest 52-week low is fairly obvious. The earnings report that Woolworths dropped last week prompted a savage sell-off of this ASX 100 share.
As we covered at the time, this report wasn't the easiest reading for Woolworths investors. For the 12 months to 30 June 2025, the company revealed a 12.6% drop in earnings before interest and tax to $2.75 billion. It was even worse on a profit basis, with Woolworths bringing in $1.39 billion in net profits after tax (NPAT), a 17.1% fall from what was reported in FY2024.
This resulted in Woolworths cutting its final dividend for 2025 by 21.1% to 45 cents per share, fully franked.
On the day these results came out, this ASX 100 stock dropped a horrid 14.7%, and has since lost another 4.2% or so.
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Is this ASX 100 stock a buy today at a new six-year low?
However, with falling share prices, the potential (key word there) returns on a high-quality stock theoretically increase. Indeed, today's new 52-week low prices Woolworths with a forward dividend yield of 3.52%, which is historically high for this company.
So, does this make Woolworths a compelling buying opportunity today?
Well, that's the question.
I would argue that today's prices could indeed be a good time to buy this ASX 100 stock, but only for investors with a long time horizon. Woolworths is clearly facing some issues with its core business. Its New Zealand division continues to be a drag on the overall business, a sentiment that can be amplified for the Big W discount chain.
Woolies' arch-rival Coles seems to be picking up the slack and taking market share at Woolworths' expense.
Even so, I think Woolworths' underlying business remains sound. It is still the clear leader when it comes to market share in the Australian grocery space, with a larger store network than Coles to boot.
For a very long time, Woolworths shares traded at a premium to those of Coles. If the ASX 100 stock can turn things around and get earnings and profits back into the black, I think there's a good chance its shares restore some of their recently lost value. That will probably take some time, though.
So, if you're looking for a quick buck, it's probably best to avoid Woolworths (or stock market investing at all). There's a chance its shares slide even lower over the short term. But long term, I wouldn't be surprised to see this ASX 100 stock far higher than it is today in a few years' time.
