The Woolworths Group Ltd (ASX: WOW) share price was a market-beater in the last financial year.
During the 12 months, the retail giant's shares rose a sizeable 11%.
This compares favourably to a 9.7% gain by the S&P/ASX 200 Index (ASX: XJO).
Will the Woolworths share price be able to beat the market again in the new financial year? Let's find out.
Can the Woolworths share price be a market-beater in FY24?
The good news is that some analysts still believe the company's shares can rise further despite their heroics in FY23.
For example, according to a note out of Goldman Sachs, its analysts have a buy rating and a $42.80 price target on its shares.
Based on the current Woolworths share price of $39.71, this implies a potential return of 7.8% for investors over the next 12 months.
Whether that will be enough to beat the market again, is impossible to say. However, it is less than the average total return that ASX shares have generated over the last 30 years. So, it will have a fight on its hands.
Though, it is worth noting that Woolworths is a reliable dividend payer and appears well-placed to increase its dividend again in FY 2024. In fact, Goldman is expecting an increase from an estimated $1.06 per share in FY 2023 to $1.15 per share in FY 2024. The latter equates to a fully franked 2.9% dividend yield.
Including its next two dividend payments, this would boost the total potential return to approximately 9.5%.
All in all, while the Woolworths share price certainly has room to climb from current levels, whether or not it beats the market may depend largely on whether the ASX 200 index underperforms historic averages.
