Insights

Why the Woolworths (ASX:WOW) share price is pushing higher today

Could new COVID-19 lockdowns across Australia be driving the supermarket giant’s shares higher on Monday?
The post Why the Woolworths (ASX:WOW) share price is pushing higher today appeared first on The Motley Fool Australia. –

The Woolworths Group Ltd (ASX: WOW) share price is in the rise this afternoon, trading up 2.79% at $37.81.

This follows its successful Endeavour Group Limited (ASX: EDV) demerger, in which Woolworths shareholders will receive one Endeavour share for every Woolworths share they own.

With the S&P/ASX 200 Index (ASX: XJO) trading down 0.06% today, let’s take a look at what’s helping the Woolworths share price outperform the market.

Lockdowns are back

New COVID-19 lockdowns and travel restrictions are sweeping across the country, with Greater Sydney entering a two-week lockdown until 9 July, and various border closures between states.

With social mobility coming to a grinding halt across many states, this could once again influence higher in-home consumption of supermarket staples.

Previously, in Woolworths’ FY20 full year results, the company cited:

In H2, total sales growth of 10.4% on a normalised basis was driven by COVID pantry-loading and higher in-home consumption through lockdown and community movement restrictions.

While Sydney’s lockdown is only for two weeks (for now), it could still have a notable impact on supermarket sales.

Take Victoria’s experience, for example.

The Australian Bureau of Statistics (ABS) reported a 1.5% increase in Australian food retailing turnover in May 2021, seasonally adjusted.

The jump in food retailing was led by Victoria, which reported a 4.0% increase after the state entered a COVID-related lockdown in late May. Within food retailing, the ABS noted a particularly strong supermarkets turnover.

COVID-19 winners running today

The Woolworths share price joins today’s resurgence of ASX COVID-19 winners.

Notably, ASX e-commerce shares including Temple & Webster Group Ltd (ASX: TPW), Kogan.com Ltd (ASX: KGN) and Redbubble Ltd (ASX: RBL) have rallied 10.33%, 6.23% and 8.02% respectively, possibly influenced by recent lockdown announcements.

The post Why the Woolworths (ASX:WOW) share price is pushing higher today appeared first on The Motley Fool Australia.

Should you invest $1,000 in Woolworths right now?

Before you consider Woolworths, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Woolworths wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

Why Atomo, Metcash, Temple & Webster, & Woolworths are pushing higher

Temple & Webster share price surges with other ASX COVID winners

ASX 200 down 0.1%: Metcash results, Costa returns, travel shares sink

ASX 200 Weekly Wrap: Share market breaks 5 week winning streak

These were the worst-performing ASX 200 shares last week

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Kogan.com ltd and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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!