The Woolworths Group Ltd (ASX: WOW) share price is having a solid day despite the market selloff.
In afternoon trade, the retail giant's shares are up over 2.5% to $34.77.
This compares very favourably to the performance of the S&P/ASX 200 Index (ASX: XJO), which is currently down 1.4% to 6,484.2 points.
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Why is the Woolworths share price outperforming?
The Woolworths share price is charging higher today despite there being no news out of the company.
However, it is worth noting that Woolworths is seen as a very defensive option for investors. That's because demand for the products it sells remains reasonably consistent whatever is happening in the economy.
So, with the Australian share market being sold off today amid concerns that rising interest rates will lead to a global recession, investors appear to have been rotating out of riskier assets like lithium shares and into Woolworths.
It is likely to be for the same reason that rivals Coles Group Ltd (ASX: COL), Metcash Limited (ASX: MTS), and Wesfarmers Ltd (ASX: WES) are pushing higher today.
Is Woolworths good value?
One leading broker that would be supportive of this rotation is Goldman Sachs.
Its analysts recently reiterated their buy rating and $44.10 price target on the company's shares.
Based on where Woolworths' shares are trading currently, this implies potential upside of 27% over the next 12 months.
