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 $31.31. In late morning trade on Tuesday, shares are changing hands at $31.45, up 0.5%.
For some context, the ASX 200 is just about flat at this same time.
Taking a step back, Woolworths shares have underperformed over the past 12 months, gaining a slender 0.6% compared to the 8.6% one-year gains posted by the benchmark index.
Though that doesn't include the 84 cents a share in fully franked dividends Woolworths paid eligible stockholders over the year. Woolworths stock currently trades on a fully franked trailing dividend yield of 2.7%.
However, 2026 has been shaping up as a much stronger year for the Aussie supermarket giant, with shares up 7.1% year to date. That's more than twice the 3.5% gains posted by the ASX 200 this year.
And Shaw and Partners' Jed Richards believes that Woolies is well-placed for more outperformance in the months ahead (courtesy of The Bull).
Here's why.
Image source: Getty Images
Should you buy Woolworths shares today?
The first reason you might want to snap up some Woolies stock is the company's defensive consumer staples revenue model.
According to Richards:
The supermarket giant's revenue base is remarkably consistent, supported by everyday essential spending. Even during softer economic periods, consumers continue to prioritise groceries and household staples, which helps stabilise WOW's earnings.
Commenting on the second reason he has a buy recommendation on Woolworths shares, Richards added:
The company's ongoing investment in digital shopping, supply chain improvements and customer experience initiatives should continue to support dependable, long-term performance.
And I'll add a third reason you may want to buy shares today. Namely, Woolworths reports its half-year (H1 FY 2026) results tomorrow.
While I don't have a working crystal ball, I expect Woolworths shares could post some sizeable gains on the heels of those results, with the supermarket having actively been working to reduce costs and improve customer experiences.
When Woolworths reported its first quarter (Q1 FY 2026) results on 29 October, shares closed the day up 2.4%.
What happened with the ASX 200 supermarket in the first quarter?
Woolworths' half-year results release tomorrow will build on the company's mixed first-quarter performance.
Over the three months to 30 September, Woolworths achieved sales of $18.5 billion, up 2.7% from Q1 FY 2025.
Woolworths shares jumped higher on the day, despite CEO Amanda Bardwell acknowledging that sales came in "below our aspirations".
Noting that the supermarket has more to do yet, she added, "The changes we are making to improve value, convenience and availability are being recognised by our customers."
Looking ahead to the three months to 31 December (Q2), which will be reported on with the half-year results tomorrow, Bardwell said:
We are cautiously optimistic about our key trading quarter [Q2] and we have strong plans in place for our customers for the festive season including a refreshed seasonal range.
Stay tuned!
