Up 19%, should I still buy Woodside shares today?

A leading analyst provides his outlook for Woodside's outperforming shares.

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

Shares in the S&P/ASX 200 Index (ASX: XJO) energy stock closed Friday trading for $27.87. During the Monday lunch hour, shares are changing hands for $28.21 each, up 1.2%. 

For some context, the ASX 200 is just about flat at this same time.

Taking a step back, Woodside shares have smashed the benchmark performance so far in 2026.

Year to date, the ASX 200 has gained a modest 1.4%, while the shares in the Aussie oil and gas giant have surged 19.2% this calendar year. That's despite the stock having retraced by 21.2% from its 7 April multi-year closing high of $35.80 per share.

Atop that market-beating capital gain, Woodside also paid out an 83.5-cent-a-share fully-franked dividend on 27 March. Adding in the interim dividend, the stock trades on a juicy 5.9% fully-franked trailing dividend yield.

As for the sizeable retrace since April, that has come amid fast falling oil prices as the United States and Iran negotiate an end to the war and work to reopen the vital Strait of Hormuz shipping route. Brent crude oil is currently trading for US$71.80 per barrel, down from more than US$118 per barrel on 29 April. 

But with the stock still up more than 18% over 12 months, is it a good buy today? 

An oil worker assesses productivity at an oil rig.

Image source: Getty Images

Should I buy Woodside shares today?

Catapult Wealth's Blake Halligan recently analysed the outlook for the outperforming ASX 200 stock (courtesy of The Bull). 

"Woodside Energy is a major Australian LNG producer with a portfolio of global gas projects," he said.

And Halligan sounded an optimistic note on Woodside shares amid its growth projects. He said:

The company is increasing its stake in the Browse joint venture to 41.27% via a US$225 million deal, reinforcing its strategy to extend the life of the North West Shelf.

This adds long term upside along with the Scarborough project, which is 94% completed.

Woodside announced its increased stake in Browse on 12 June, after exercising its pre-emption right to acquire a 10.67% interest from PetroChina. 

"Woodside's decision to pre-empt reflects our commitment to continue progressing the proposed Browse to North West Shelf development," Woodside CEO Liz Westcott said on the day. "We see this as a pathway to maximise long-term shareholder value. "

Wescott added:

This acquisition is a disciplined and capital efficient way to align integrated value in these assets for a development with long-term cash flow potential. We will continue working with the Browse Joint Venture to fully evaluate development opportunities.

Despite the long-term upside potential from the company's growth project, Halligan issued a hold recommendation on Woodside shares for now.

He concluded:

Regulatory uncertainty, rising costs and policy risks in Australia temper the outlook. While growth options are significant, execution and approvals risk support a balanced hold stance at current valuation levels.

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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