Tesco: Inflation Declines, Supermarket Stock Rises

Last Updated: 15. November 2023By

In Germany, Tesco is probably not as well-known, but in the UK it is the big competitor of Aldi and Lidl. Tesco plc is a retail chain operating supermarkets in Europe, North America, and Asia. The company’s product range includes food, household goods, baby items, books, electrical products, electronics, flowers, as well as CDs, videos, DVDs, and computer games.

Tesco Increases Profits and Revenue In the past quarter, the company achieved a profit of 927 million pounds, compared to 240 million pounds a year ago. Earnings per share were 0.12 pounds, compared to 0.03 pounds. The British food retailer’s revenue rose to 34.1 million pounds from 32.5 million pounds.

„We are in a strong position“ โ€œFood inflation has fallen across the half-year and, while external pressures remain, we expect this to continue throughout the second half of the year. We are in a strong position to continue investing for our customers and will continue to lower prices wherever we can,โ€ said CEO Ken Murphy.

Supermarket Stock Has Recovered Significantly Conclusion: After the stock price crash due to high inflation, the supermarket stock has recovered, as you can see on the chart. Since August, Tesco has been in a nice uptrend. But how much potential does the stock still offer? The analyst expectations are very positive. 10 out of 12 analysts recommend buying, and 2 analysts recommend holding. The average analyst target price is 3.15 pounds, offering investors not much more potential. The highest analyst target price is 3.5 pounds – 25% above the current price. In addition, investors can also enjoy a healthy dividend yield of 4.56%. Finally, a P/E of 10 based on earnings estimates for 2024 cannot be considered expensive.