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TESCO ROCKETS TO NEW HEIGHTS: 27% JUMP IN JUST ONE YEAR!
Hold onto your grocery bags! Tesco, the UKโs GIGANTIC supermarket chain, has STUNNING news for every investor! Shares are UP an eye-popping 27% over the past 12 months and a tremendous 75% in just five years. Forget the past; this retail titan has clawed its way back to the top after a rough patch under former chief Philip Clarke. Now, itโs a FORCE to be reckoned with on the FTSE 100!
Every time you glance at Tescoโs stock price, itโs like watching a well-oiled machine โ smooth, steady, and simply unstoppable! Yes, there have been a few bumps along the way, like the brief panic after Donald Trumpโs so-called โLiberation Dayโ tariffs. But guess what? Tesco bounced back faster than you can say โshopping spree!โ And as tensions flare between Israel and Iran, this retail giant remains unfazed.
UNSTOPPABLE GAINS: HOW DOES IT DO IT?
Tesco has brushed aside Brexit, the pandemic, and the relentless rise of Aldi and Lidl like a boss! According to Kantar Worldpanel, it now BASKS in a cozy 28% share of the UK grocery market โ its highest in a DECADE! That’s miles ahead of Sainsburyโs pathetic 15.1%!
Check out this jaw-dropping trading update from June 12: UK food sales surged by 5.9% in Q1, while non-food sales soared by 6.2%! Online sales are on FIRE with an 11.5% revenue JUMP! And customer satisfaction? Itโs soaring, while Tesco keeps its prices in check with mouthwatering offers like Aldi Price Match and over 9,000 Clubcard deals every week!
DIVIDEND DELIGHTS: GET READY TO CASH IN!
But wait, thereโs MORE! Tesco is handing out dividends like candy! With a trailing yield of 3.46%, things are looking bright! Last year, dividends spiked by an incredible 13.2%, coming in at 13.7p! Watch out for the forecast โ analysts predict a sprinkle of growth with 15.1p in 2027 and 16.1p in 2028, pushing yields to a sizzling 4.4%!
Sure, there have been ups and downs โ 2021 and 2023 saw flat dividends, but come on, who doesnโt love a rollercoaster?
VALUATION ON FIRE: IS THIS A MUST-BUY?
And don’t forget the cherry on top: Tesco is sweetening the pot with buybacks, racking up a jaw-dropping ยฃ448 million since April, out of a ยฃ1.45 billion plan running until 2026!
With a price-to-earnings ratio of 14.2, analysts are on the edge of their seats! Although future growth might simmer down, 12-month predictions show gains of around 5% with dividends on top. And guess what? Nine out of 16 analysts are screaming โSTRONG BUY!โ Only one dares to say โSell!โ Talk about bullish vibes!
But hold on! Tesco isnโt invincible โ competition is fierce with margins hovering between 3% to 4%. Asda and Morrisons could strike back at any moment, with Aldi and Lidl continuing their relentless pursuit. Who knows what future leadership holds?
Remember, the only truly free lunch in investing is diversification! Tesco shares might have some risks, but with these dazzling numbers, theyโre definitely WORTH considering today!