Why is the Endeavour share price escaping unscathed on Tuesday?

Why are Endeavour shares doing so well this Tuesday?

| More on:
A woman wine tasting in a bottle shop.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The ASX 200 is having an awful day of trading today 
  • But many ASX consumer staples shares are fairing far better than the broader market 
  • Endeavour is one of the best performers of this sector today. Let's see why... 

The S&P/ASX 200 Index (ASX: XJO) is having a fairly awful start to this short week of trading. At the time of writing, the ASX 200 has lost a nasty 1.9% after falling by as much as 2.4% earlier this morning. But one ASX 200 blue-chip share, in particular, seems to be escaping unscathed today. That would be the Endeavour Group Ltd (ASX: EDV) share price.

Endeavour is the alcohol and pubs company that was spun out of Woolworths Group Ltd (ASX: WOW) last year. It owns the Dan Murphy's and BWS bottle shop chains, as well as Woolies' old pub assets.

At the time of writing, the Endeavour share price is up a healthy 1.3% so far today. It goes without saying that that is a marked outperformance of the broader markets.

So what is sparing Endeavour shares from the fate of most of the other ASX 200 shares today?

Why is the Endeavour share price popping its cork today?

Well, it's not entirely clear. There hasn't been any news out of Endeavor today. Or indeed since its quarterly trading update that was released last week. As my Fool colleague Brooke covered at the time, this saw Endeavour report a 2.1% slip in sales over the three months to 3 April 2022.

So it's possible that today's strong performance from Endeavour is a result of the company's nature. As we reported with Woolworths earlier today, investors often flock to the 'safety' of consumer staples shares like Endeavour in times of market fear and selling pressure. Food, drinks and vices like alcohol tend to have a reputation as 'recession-proof' products. As such, many investors feel safer owning these kinds of companies in times of uncertainty – such as today's market-wide selloff.

That could explain why other businesses in Endeavour's consumer staples sector, such as Woolies, Coles Group Ltd (ASX: COL), Metcash Limited (ASX: MTS) and Treasury Wine Estates Ltd (ASX: TWE), are all doing far better than the ASX 200 today.

At the current Endeavour share price, this ASX 200 blue-chip has a market capitalisation of $13.92 billion, with a dividend yield of 3.22%. 

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended COLESGROUP DEF SET. The Motley Fool Australia has recommended Treasury Wine Estates Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Consumer Staples & Discretionary Shares

Stock market crash concept of young man screaming at laptop on the sofa.
Share Fallers

Guess which ASX 200 stock just crashed 31% on slumping sales

The $1.3 billion ASX 200 stock is getting hammered today.

Read more »

Photo of a happy couple with their new car and car keys.
Consumer Staples & Discretionary Shares

Up 55% this year, why Macquarie believes Eagers Automotive shares can charge higher

Eagers set to capitalise as BYD’s Australian sales surge.

Read more »

Two race cars on a track at sunset.
Consumer Staples & Discretionary Shares

Down 36% in a year, this ASX 300 stock is one to watch

After a major sell-off, this high-performance cooling specialist might be gearing up for a turnaround.

Read more »

Two laughing young women hold shopping bags and ride an escalator up to another level in a Scentre Group shopping centre.
Broker Notes

3 ASX consumer sector shares to buy in July: expert

A leading expert has named its top 3 picks.

Read more »

person with large headphones looking puzzled holding their hand to their chin.
Broker Notes

Does Macquarie prefer Harvey Norman or JB Hi-Fi shares?

Both companies have market-beating long-term track records.

Read more »

Person taking out a slice of pizza from a pizza box.
Consumer Staples & Discretionary Shares

Why now is the time to buy the big dip on Domino's shares

Down 46% in a year, a leading expert forecasts brighter days ahead for Domino’s shares.

Read more »

Three people sit on safe cheering with pizza on table
Consumer Staples & Discretionary Shares

Food fight! Have Guzman Y Gomez shares outperformed Domino's since ASX debut?

Lets find out who’s topping the menu for investors

Read more »

Woman chooses vegetables for dinner, smiling and looking at camera.
Consumer Staples & Discretionary Shares

Here's the Coles dividend forecast from top analysts through to 2029

Can this defensive business provide pleasing payouts? Let’s take a look…

Read more »