Jason Fittler Minc Financial Services Woolworths ( WOW) is Australia’s premier major retaileroperating supermarkets, discount department stores, consumer electronics and more recently hardware and home improvement stores.
It has an enviable sales and earnings track record.
Market capitalisation exceeds $ 36bn with annual sales approaching $ 52bn.
Compound annual growth rates around 18% for earning per share and dividends per share has driven exceptional total returns over the past decade.
This reflects well on managements operational and shareholder focus and is responsible for its premium rating.
The retail sector is indeed under pressure especially when Wool worths downgraded its first half 2011 and full year 2011 guidance on 24 January.
If the premier retailer was ’ under the whip’ how are the other retailers faring?
WOW has an enviable track record with exceptional total returns over the past decade.
Project Refresh is a great success capturing over $ 9bn in cumulative savings with another $ 1.5bn to come through further logistics and development initiatives.
WOW is a defensive growth stock with a solid balance sheet and an imposing moat surrounding its economic castle.
Trading at $ 26.00 with a gross yield 6.5% and a price target of $ 30 this should be a core holding.
This information is general. Prospective investors should consider their own objectives, financial situation and needs.