What Happened to Woolworths Ltd’s Share Price?
Shares in supermarket retailer Woolworths Ltd [ASX:WOW] lagged a rebounding Aussie stock market today, falling by 0.54%. Earlier today, Woolworths traded down by more than 1.1%.
Today marks the 12th loss in the past 13 trading sessions for Woolworths shares. Since peaking at $38.51 seven months ago, the stock has shed nearly 20% of its value. That’s a huge move for a company once worth as much as $50 billion.
Why Did This Happen to WOW Shares?
Investors seem to be losing more confidence every day in Woolworths’ ability to take the fight to its arch-enemy Wesfarmers Ltd [ASX:WES]. Wesfarmers’ hardware chain Bunnings is performing strongly, but Woolworths’ Masters chain has been falling further behind for well over a year now.
In supermarkets, Woolworths seems to be struggling to deal with the rise of new competitors like Aldi and Costco. Investors seem to be betting that a soft outlook at tomorrow’s Woolworths annual general meeting will justify this month’s weak price action.
What Now for Woolworths Ltd?
A behemoth like Woolworths can’t lose market share forever. As soon as investors get an inkling that the ship is starting to turn around, the stock won’t just flatline — it should rebound. And at these depressed levels, bargain hunters will start to sniff around.
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It’s hard to buy stocks when the rest of the market hates them, but that’s the scenario that could be developing at Woolworths.
Cheers, Tim Dohrmann+
Small-Cap Analyst, Australian Small-Cap Investigator
Join Money Morning on Google+
The post Why the Woolworths Ltd Share Price Fell Today appeared first on Stock Market News, Finance and Investments | Money Morning Australia.
