Woolworths Group Ltd (ASX: WOW) shares are sliding today.
Shares in the S&P/ASX 200 Index (ASX: XJO) supermarket giant closed yesterday trading for $33.50. In early afternoon trade on Tuesday, shares are changing hands for $32.90 each, down 1.8%.
For some context, the ASX 200 is down 0.3% at this same time.
Woolworths shares have outperformed in 2026, gaining 11.8% compared to the benchmark index's 0.6% year-to-date loss.
Over the past year, however, Woolies stock has gained a slender 0.4%, trailing the 5.4% returns posted by the ASX 200.
Though we shouldn't forget Woolworth's dividends. The ASX 200 stock trades on a 2.8% fully-franked trailing dividend yield.
And the supermarket recently reported strong growth in its quarterly food sales.
Which brings us back to our headline question.
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Woolworths shares: Buy, hold, or sell?
Catapult Wealth's Blake Halligan recently ran his slide rule over the supermarket giant (courtesy of The Bull).
"Food retail sales were up 5.9% in the third quarter of 2026 when compared to the prior corresponding period," he noted.
But Halligan sounded a note of caution on that growth outlook.
Explaining his hold recommendation on Woolworths shares, he said:
However, food earnings before interest and tax growth guidance is expected to be in the mid-to-high single digit range, but no longer at the upper end of the range.
While scale and defensive earnings remain strengths, possible margin pressure and cautious consumer sentiment temper near‑term upside, supporting a hold for now.
What's the latest from the ASX 200 supermarket?
Woolworths released its third quarter (Q3 FY 2026) results on 30 April.
The 5.9% year-on-year increase in Australian Food sales to $13.8 billion, which Halligan mentioned above, helped support a 4.5% lift in total Q3 sales to $18.1 billion.
eCommerce sales showed particularly impressive growth, surging 20.2% from Q3 FY 2025 to reach $2.7 billion. That now sees the company's eCommerce segment representing 16.6% of all its Australian Food sales.
However, Woolworths shares closed down 7.8% on the day of the results release, with investors having taken note of the lowered expectations for full-year FY 2026 food earnings growth.
The company also flagged rising uncertainty amid the ongoing Iran war.
"The conflict in the Middle East is creating greater uncertainty for our customers, suppliers and team at a time when cost-of-living pressures are already acute," Woolworths CEO Amanda Bardwell said.
Bardwell added:
While the impact on the group to date has been limited, higher fuel costs and secondary effects are likely to have an increasing inflationary impact as we move through the calendar year.
