WDS rallied another +3.4% yesterday taking it within 3% of a new post-Covid high, a good performance considering crude oil is trading over 15% below its June high. Similar to BHP we are looking for WDS to maintain its strength until we see recession fears increase, assuming they do, and at this stage a break above its $35.77 high for the year feels inevitable. The stocks due to report next week and with a large $US1.15 fully franked dividend anticipated in September, it’s hard to imagine too many sellers surfacing short-term especially as its US peers such as Exxon (XOM US) and Occidental (OXY US) also appear to have set sail for fresh 2022 highs.
- We are long WDS in our Flagship Growth Portfolio and plan to re-evaluate the stock above $36 over the coming weeks/months.
MM is long and bullish WDS, at least short-term
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Woodside Energy Group (WDS) v Crude Oil ($US/barrel)
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Woodside Energy Group (WDS) v Crude Oil ($US/barrel)
