Why the Wesfarmers (ASX:WES) share price is up today

The Wesfarmers Ltd (ASX: WES) share price is up nearly 2% today, and 55% over the past year, Here’s why everything is coming up Wesfarmers.
The post Why the Wesfarmers (ASX:WES) share price is up today appeared first on The Motley Fool Australia. –

feet of investor like warren buffett walking up chalk-drawn steps

The Wesfarmers Ltd (ASX: WES) share price is having a top day today. At the time of writing, Wesfarmers shares are up 1.61% to $53.07 a share. That looks especially impressive when you consider the broader S&P/ASX 200 Index (ASX: XJO) is up 1.56%.

Today’s move caps off what has been a pretty good month for Wesfarmers shares. Since 1 March, the Wesfarmers share price is up 5%. Saying that, this conglomerate is still more than 5% below the all-time high of $56.40 a share that we saw back in February.

This ASX blue chip has done exceptionally well over the past year, which of course includes the pandemic and all of the economic woes that came along with it.

Over the past 12 months, Wesfarmers shares are up a staggering 55.5%. They are also up more than 16% from the pre-COVID high that Wesfarmers hit (just over $46), which was an all-time high at the time. 

So why have Wesfarmers shares been in demand of late in particular?

The stars align for Wesfarmers shares

Everything has been going the way of Wesfarmers over the past year. Its flagship retail chains – Bunnings Warehouse and Officeworks – benefitted enormously from lockdowns. It seems when people in lockdown have nothing to do but renovate their houses and build home offices, Bunning and Officeworks do well.

But here’s what might be the one real gamechanger for Wesfarmers shares of late: lithium.

Wesfarmers became a player in the lithium space when it acquired lithium miner Kidman Resources back in 2019. Today, the company has expansive plans to build a lithium mine, concentrator and refinery at its Mt Holland lithium project in Western Australia that it inherited from Kidman. Lithium production is expected to commence in the second half of 2024.

Lithium miners and producers have been enjoying a surge in investor sentiment over the past few months, which may have spilled over into the Wesfarmers share price. Just take an ASX lithium miner like Pilbara Minerals Ltd (ASX: PLS). Its share price is up 150% over the past 6 months. Another lithium miner in Galaxy Resources Limited (ASX: GXY) is up 125%.

It’s possible that investors have noticed the surging values of companies in this sector and have rewarded Wesfarmers accordingly.

And, after the year Wesfarmers has had, that’s just another feather in its cap, it seems.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Wesfarmers (ASX:WES) share price is up today appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!