Wesfarmers shares reach all-time high at $71.08, up 20% in 2024

From The Motley Fool: 2024-05-08 00:26:37

Wesfarmers Ltd (ASX: WES) share price hits all-time high at $71.08, up over 20% in 2024. Economy strength drives success of Bunnings, Kmart, and Officeworks. Investor caution advised with rising P/E ratio, reaching 31x FY24 EPS. RBA expects elevated inflation and interest rates, potential stock market volatility ahead.

Wesfarmers projected profit growth in next three years, with EPS estimated at $2.26 (FY24), $2.44 (FY25), and $2.71 (FY26). P/E ratio spike to 29-31x earnings amidst modest EPS growth. Long-term potential in Kmart, Bunnings, and expansion into lithium and healthcare sectors. Quality business with continuous profit growth outlook.

Despite elevated share price, Wesfarmers remains promising long-term investment. Company’s expansion and expertise in healthcare sector, potential growth from Australian population increase. Consider initiating a position now and adding on dips or earnings growth to reduce P/E ratio.



Read more at The Motley Fool: Would I still buy Wesfarmers shares as they hit all-time highs?