The supermarket stock has taken off this year and brokers are tipping it will go higher.
The post Why has the Coles share price outperformed the ASX 200 by more than 10% in 2022 so far? appeared first on The Motley Fool Australia. –
The Coles Group Ltd (ASX: COL) share price has so far fended off the S&P/ASX 200 IndexÂ (ASX: XJO)âs year to date tumble, recording a decent gain for the first eight months of 2022.
The supermarket operatorâs stock is currently swapping hands for $18.85. Thatâs 4.84% more than it was trading for at the start of this year. Meanwhile, the ASX 200 has dumped 6.85% in 2022 so far.
That leaves the supermarket stock having outperformed the broader market by nearly 12% year to date.
Could inflation Ââ one of the major weights on the market this year Ââ be providing a boost for the Coles share price? Letâs take a look.
What’s going right for the Coles share price?
Itâs been a rough year on the market, but one sector has managed to bypass much of the suffering. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) has traded relatively flat so far this year.
And within the sector, the Coles share price is relishing. In fact, it hit an all-time high of $19.28 yesterday.
Its strong performance has come as the company is heralded as an inflationary winner.
Brokers have tipped the supermarket operator as an inflation-resistant buy as it sells, well, staples, as my Fool colleague Sebastian reported earlier this week. Consumers canât choose to skip the supermarket trip due to rising inflation.
Additionally, the market has driven the Coles share price higher every time the company has released news this year.
Thereâs also been exciting non-market related news from the supermarket giant this year.
And in more exciting news, brokers are tipping the Coles share price to keep rising.
Both brokers are also expecting Coles to up its dividends over the coming years.
The post Why has the Coles share price outperformed the ASX 200 by more than 10% in 2022 so far? appeared first on The Motley Fool Australia.
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Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Brooke Cooper 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 positions in and has recommended COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.