The Woolworths Ltd (ASX: WOW) share price hit a new 52-week high of $35.84 per share on Wednesday – but is the Aussie retailer in the buy zone?
Why the Woolworths share price has surged higher
The Woolworths share price has climbed 22% higher so far this year, appreciating by the same amount as the S&P/ASX200 Index (ASX: XJO) in 2019.
Despite not announcing anything in the last month or so, the Woolworths share price has been carried higher throughout July on the strong performer of domestic equities and anticipation of a solid result in its August full-year earnings release.
Yesterday, the company announced a new partnership with Zip Co Ltd (ASX: Z1P) to use the "buy now, pay later" service in its Big W stores from mid-2020, which saw the Zip share price climb higher but Woolworths remained largely unchanged.
Woolworths did announce the merger and separation of Endeavour Drinks and ALH on 21 June 2019 while a new strategic partnership with Marley Spoon AG (ASX: MMM) saw the Aussie retailer invest $30 million into the meal delivery service.
How has Woolworths compared to Coles?
The Woolworths share price has performed in line with the market so far this year and has also managed to marginally outperform its biggest supermarket Coles Group Ltd (ASX: COL) which has seen its share price climb 20% in 2019.
All eyes will be on Coles when it reports its first full-year result in August following its November 2018 spin-off from Wesfarmers Ltd (ASX: WES), when it re-listed on the ASX with an $18 billion market cap.
Coles expects to report its results on 22 August 2019 having unveiled its "refreshed strategy" in mid-June to build long-term shareholder value and improve its profitability.
Is Woolworths in the buy zone?
While the Woolworths share price has hit a new 52-week high and could see momentum carry it higher, I'd personally be waiting until after its August results before buying the stock to hold long-term.
Retail conditions in Australia appear softer at the moment and the monthly data releases haven't shown much of a rebound as of yet, so I'd be wanting to see a clear strategic direction to boost earnings in the medium-term before considering loading up on Woolworths shares.
