Skip to Content

Is WOW entering the buy zone?

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

The Latest Q&A

Question asked

Is WOW entering the buy zone?

Hello MM team, Thank you for all the answers to my previous questions. It is helpful! I have been watching with interest the fall in Woolworth's share price (~14% ) since its peak in June. I was reading the stock report available in the MM portal and according to it WOW's forward P/E is at a 15% discount relative to the 5 year average. But it is still expensive (14% premium) relative to its 5 year average trailing P/E. Immigration should be putting a floor to revenue growth, and I would imagine many Australians will be going to Big W instead of DJs or Myer to do their Christmas shopping this year. Increased operating costs (lower margins) is perhaps the biggest risk. Is WOW entering the buy zone? Thanks, Angela


Hi Angela,

You must be psychic, we discussed WOW in our Friday Morning Report on defensives.  Our conclusion came down:

  • We like Woolworths (WOW) as a defensive play but our ideal entry level is $30-31

For those subscribers wanting to access the detailed stock report Angela mentions, it is available on the Woolworths company page here under Forecasts Tab – Get Detailed Stock Report. It’s a very useful tool.

image description
Woolworths Group Ltd (WOW
image description

Relevant suggested news and content from the site

Back to top