The S&P/ASX 200 has taken a beating to start 2025, down about 7% since January 1st. In just the last month, the ASX index is down over 3% following confusion and uncertainty about Trump’s tariffs.
However, 3 ASX shares have not just held strong – they’ve run entirely against the trend, delivering strong gains over the last 30 days.
What’s driving the strong returns? And can it continue?
Here are the 3 companies I’ve been watching.
Woolworths Group Ltd (ASX: WOW)
You’ll quickly notice a theme here.
Just about every company swimming against the tide the last month has been a consumer staples company. Meaning, they’re companies that sell the stuff we have to buy, no matter how we’re feeling about tariffs, interest rates, and the Aussie dollar.
Leading the pack, up 10.7% over a 30-day period, is Woolworths Group Ltd (ASX: WOW), the grocery giant we love to hate (according to consumer trust rankings).
If there’s one thing we all buy regardless of the economy, it’s food. And us Aussies buy a huge chunk of that food from Woolies.
In fact, Woolworths is reported to have a market share of around 37% of the Australian grocery market.
While investors have steadily sold off miners and tech companies, it seems there’s still confidence in the ability of the “fresh food people” to turn a profit.
Coles Group Ltd (ASX: COL)
No prizes for guessing the second company on the list.
Coles Group Ltd (ASX: COL) shares are up about 10.3% since the middle of March. The supermarket giant is estimated to have about a 28% share of the Aussie grocery market but they compete intensely with Woolworths and have recently looked like taking market share.
Both retailers seem to be flying high after the ACCC’s year-long investigation finished with a puff of smoke. The regulator conceded that not much can be done about their dominance in the marketplace.
From a consumer perspective, that’s not what we want to hear.
But from an investor perspective… I’m seeing strong moats around two of the most profitable supermarkets in the world.
Telstra Group Ltd (ASX: TLS)
Somebody better check if Telstra Group Ltd (ASX: TLS)’s internet connection is still up and running because it seems they haven’t read the news.
Telstra shares have ignored global politics and are up close to 9% over the last month, well and truly outcompeting the broader ASX 200.
The telco is another great example of the resilience of consumer staples. I’m betting not a single Aussie has changed their phone plan on the news of tariffs for penguins.
A little over a month ago, Telstra put out its HY25 report. It showed a 6.5% increase in net profit, higher margins, and a bump in the dividend. All-in-all, it’s been a good time to be a Telstra shareholder.
Will the smooth ride continue?
All three of these ASX shares have looked like a great pick over the last month. However, if this trade war escalates and we find ourselves in another economic slump, even the consumer staples companies will start to take a hit.
At the end of the day, all shares are volatile and these three are no exception.
It’s also worth keeping in mind that they’re all part of the ASX 200 index.
That means that, regardless of their individual credentials, they could be impacted by a broader sell-off of ASX 200 ETFs and declining institutional investment.
For a long-term investor though, I think Woolies, Coles, and Telstra provide great examples of the power of good companies with strong competitive advantages.
