3 reasons to buy Woodside shares today

A leading investment analyst expects Woodside shares could rocket another 27% in 2026. But why?

Woodside Energy Group Ltd (ASX: WDS) shares are sliding today.

Shares in the S&P/ASX 200 Index (ASX: XJO) energy stock closed yesterday trading for $30.75. In morning trade on Thursday, shares are changing hands for $29.82 apiece, down 3%.

For some context, the ASX 200 is up 0.6% at this same time.

Now, you may be wondering why Woodside is underperforming today, despite Brent crude oil rising another 1.3% overnight to trade at US$80.51 per barrel.

Well, that's partly due to the ASX 200 stock's strong gains over the last four trading days, with some profit-taking likely going on.

And it's partly due to Woodside trading ex-dividend today.

When the company reported its full 2025 calendar year results on 24 February, management declared a fully-franked 83.4 cent per share final dividend. That passive income payout will go to investors who owned the stock at market close yesterday.

If we were to add that dividend payout back into today's share price, then shares are only down 0.3% at the time of writing.

Taking a step back, Woodside shares have outperformed over the past year, gaining 23.7%. That compares to a 10% 12-month gain delivered by the ASX 200. And it doesn't include the $1.652 in dividends Woodside paid out (or shortly will pay out) over this period.

And looking ahead, Fairmont Equities' Michael Gable expects 2026 could see Woodside stock jumping another 27%, or more, from current levels (courtesy of The Bull).

Here's why.

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Image source: Getty Images

Should you buy Woodside shares today?

Gable came out with his bullish assessment on Woodside late last week, before the US and Israeli attacks on Iran and the resulting conflict in the oil-rich Middle East sent global oil prices soaring.

Commenting on the first reason he has a buy rating on Woodside shares, he said, "Expected increasing demand for oil and gas in 2026 leaves me bullish about the energy sector."

And Woodside looks well placed to help fill that growing demand need.

"The company posted record annual production of 198.8 million barrels of oil equivalent in full year 2025, exceeding the guidance range," Gable noted, citing the second reason the ASX energy stock is a buy.

"Record production offset lower realised prices," he added.

As for the third reason you might want to buy shares today, Gable concluded:

The company's full year results met expectations, and the share price recently moved above a major resistance level.

I expect the shares to trend higher and re-test previous peaks around $38 as calendar year 2026 unfolds. The shares have risen from $22.95 on January 8, 2026 to trade at $28.075 on February 26.

The last time Woodside shares were trading in the $38 range was back in September 2023. At the time, Brent crude oil was trading for around US$93 per barrel.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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