While the Woolworths Group Ltd (ASX: WOW) share price is having a decent run over the last month — up 2.26% in a month, there's another ASX supermarket that's rocketing above it, and even the Coles Group Ltd (ASX: COL) share price.
Those are the shares of Metcash Limited (ASX: MTS). The IGA, Foodland, Mitre 10, and Cellarbrations brand owner is up 5.83% over the last 30 days. That's higher than Woolworths and Coles, the latter up 5.32% in a month. For context, the S&P/ASX 200 Index (ASX: XJO) is 0.39% lower during that time.
Let's take a closer look.
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Why this company is outperforming the Woolworths share price?
As Motley Fool has previously reported, expert opinion is pessimistic on the Woolworths share price.
Credit Suisse has a sell on the company with a price target of around $31. That suggests the broker believes that Woolworths shares are going to drop by more than 20% over the next 12 months. It thinks it's overvalued for its expected earnings and potential (limited) growth. Several others also have the company at 'hold' – valuing its shares at about $40.
Metcash, meanwhile, is the stock to buy – at least according to some brokers.
UBS currently rates Metcash shares as a buy, with a price target of $4.60. A change of consumer habits appears to have helped the business including higher levels of local shopping. Some of these changes could be permanent.
The broker believes Metcash could pay a grossed-up dividend yield of 6.5% in FY22.
What else is affecting Woolworths?
This month, Woolworths was in the sights of the Australian Parliament, specifically about the pay and working conditions of its delivery drivers, including its partnership with Uber Eats.
Last Monday, Australian Labor Senator Tony Sheldon accused Woolworths of turning a blind eye to the conditions to which Uber Eats delivery employees are subject. Correspondingly, Senator Sheldon purported that the multibillion-dollar ASX-listed company is neglecting its responsible sourcing standards in the process.
This news may have been a drag on the Woolworths share price as its shares were down on the same day.
Woolworths share price snapshot
Over the past 12 months, the Woolworths share price has increased 15.77%. Year-to-date, shares in the company are up 16%. Its 52-week high is $44.06 and its 52-week low is $35.96.
Woolworths Group has a market capitalisation of approximately $48 billion.
