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Posted by ShrutiAggarwal on 27 October 2017, 7:15 AM

Tesco Plc, a Hold at the current levels

Tesco Plc. is a hold at the current price levels as the stock has had a spectacular rally since July this year and it looks like the rally shall continue! The stock finished trading on the London Stock exchange on 24th October at 188.0p a share, up by 0.3%.  The company announced its half yearly 2018 results on 4th October and the stock was down by nearly 5% the same day. However, the next day onwards the sentiment picked up and stock has been again rising. In terms of technical analysis or charting, the stock has been trading on the upward trend line for the last four months. Currently, the stock has been trading above its 20 day moving average (DMA), 50 DMA and 100 DMA of 186p, 184p and 179p respectively. The stock has been nonstop making higher highs and lower lows which further confirm the bullish trend of the stock. The immediate support and resistance of the stock is seen at 185p and 190p respectively. Any breakout above 190p would take the stock up to 215p.  Therefore, traders or investors need to keep an eye at the respective levels and accordingly hedge their positions.

Let’s throw some light on the latest financial results of the company.  The company’s H1’18 revenue is up by 3.3% year on year. Operating profit before non-recurring items is up by 27% year on year. The operating margin in H1’18 was 2.7% versus 2.2% in H1’17. As per the management, the debt would be reduced thereby strengthening the balance sheet and cash flows would also improve. Going forward, the management expects the capital expenditure to remain between £1.1bn and £1.4bn per year. The company has also proposed a merger with Booker and is currently undergoing the due diligence. Therefore, the company would continue to report organic growth as well. (Read more)

Topics: Analysis
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Posted by MaxMarioni on 1 October 2017, 4:14 PM

Tesco comeback kid?

Analysts expect Tesco (TSCO:LN) sales figures in the half-year term will have recorded a modest rise of 3%, increasing to GBP 28.1 billion, while also operating profits will have improved, moving up by 2% to GBP 502 million. This comes after a few rocky years, where the retailer, still presumed to Britain’s biggest, had to fight financial fraud allegations and the consequences of spiralling cost-inflation. (Read more)

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Tesco Plc. is an avoid at the current level for the time being as the stock has been falling continuously for the last few days and we expect the correction to continue. Traders or investors are not adviced to initiate fresh positions or fresh longs in Tesco Plc., till the stock starts consolidating. The stock finished trading on the London stock exchange at 166.1p on 24th June, down by 0.27% compared to the previous close. A few days back, the stock has formed ‘Bearish engulfing’ candle and the next day the bears took the charge by piercing a day before low as well and the stock continued to fall. Therefore, in terms of technical analysis or charting the trend looks weak. The stock has been trading on the lower side of the Bollinger band, which is another sign of a bearish trend. The momentum oscillators like RSI and MACD also points out towards the downside. Although, the RSI is at 27 which also indicates that the stock is in oversold zone now and shall bounce back soon. Hence, investors shall wait for a strong trend reversal sign before building any fresh long positions. The stock is likely to have a support at 165p, but if it is not able to sustain the support zone of 165p as well, the stock may test the lows of up to 154p.

(Read more)

Topics: Analysis
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Tesco Plc is a ‘Hold’ at the current price levels, but the stock might also head for a small correction towards downside and will start consolidating then. The company announced its half yearly 2017 results last week, on 5th October 2016.

The company’s CEO, Dave Lewis, commented on the results of the company, “We have made further strong progress in the first half, with positive like-for-like sales growth across all parts of the Group as we re-invest in our customer offer whilst rebuilding profitability in a sustainable way.  The entire Tesco team is focused on serving shoppers a little better every day.  We are more competitive across our offer.  Prices are more than 6% lower than two years ago, availability and service have never been better and our range is more compelling.  Our new fresh food brands are performing ahead of expectations, improving our value proposition and further removing reasons for customers to shop elsewhere.  Whilst the market is uncertain, we have made significant progress against the priorities we set out two years ago, stabilizing the business and positioning us well for the future.  Today, we are sharing the plans we have in place to become even more competitive for our customers, even simpler for colleagues and an even better partner for our suppliers, whilst creating long-term, sustainable value for our shareholders.” (Read more)

Topics: Analysis
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Tesco PLC is a ‘Buy’ with a potential upside of up to 40% from the current price levels. The stock finished trading on London stock exchange on 20th April at 182 p a share. Post the announcement of fiscal 2016 results, the stock headed towards some correction as the stock has fallen by 10% post the fiscal 2016 financial results. However, any correction or a dip in stock can be an opportunity to buy for a value investor. In the terms of technical outlook, the stock has been trading below its 20 day and 50 day moving average of 190 p and 186 p respectively. However the stock has been trading above its 100 day moving average of 171 p. Therefore, the immediate support level for the stock is at 100 DMA i.e. 171 pence. We expect the stock to be range bound between 177p-200p in the coming quarters and months. Hence, the traders should watch these levels and trade with caution. Based on earnings estimates for the company's fiscal year ending in December 2017, the stock has a price-to-earnings ratio of 20.82 which is pretty high compared to FTSE100 12 month forward P/E of 13.37. Tesco Plc has a consensus rating of ‘hold’ and a consensus target price of 196 p.

(Read more)

Topics: Analysis
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Posted by ShrutiAggarwal on 2 April 2016, 6:55 AM

Fairly priced Tesco Plc

Tesco PLc is a ‘Hold’ and is fairly priced at the current price levels, as we don’t see much upside in the stock.  Tesco Plc has been trading in a range between 137p-252p over the past one year.  Based on earnings estimates for the company's fiscal year ending in March 2017, the stock has a price-to-earnings ratio of 21.6, according to Morningstar.com. This is slightly higher compared to FTSE 100 forward P/E of 13.3. The stock finished trading on London stock exchange at 190 p on 1st April 2016. In the terms of technical analysis, the stock has been trading above its 20 day, 50 day and 100 day moving average of 191p, 180p and 170p respectively. The stock has a strong resistance at 201 pence and immediate support is at 188 pence. However, the traders shall watch the support and resistance levels and hedge their positions accordingly.

Tesco PLC is a retail company and has a market cap of £15.8 b. The Company is engaged in the business of retailing and retail banking. The Company operates in four segments: UK, Asia, Europe and Tesco Bank. It has retailing and associated activities (retail) operations across the United Kingdom, Asia and Europe. It is engaged in the retail banking and insurance services through Tesco Bank in the United Kingdom (Bank). The Bank offers a range of personal banking products, which include mortgages, credit cards, personal loans and savings. The Company operates approximately 7,817 shops around the world. Its subsidiaries include Tesco Stores Limited, One Stop Stores Limited, Tesco Ireland Limited, Tesco-Global Stores Privately Held Co. Limited, Tesco Polska Sp. z o.o., Tesco Stores CR a.s., Tesco Stores SR a.s., Homeplus Co. Limited and Homeplus Tesco Co. Limited, among others. (Read more)

Topics: Analysis
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Posted by Fuzzyfish on 14 September 2015, 8:12 PM

Are Supermarket Stocks Done?

Supermarkets historically should have been a logical investment. Everyone needs food - supermarkets have got a lot smarter, and the general population is increasing, thereby increasing demand for food-stuffs and general groceries.

Tesco is still the largest UK grocery store, with around 28% of UK market share (as of July 2015), followed closely by ASDA (Wallmart group), and Sainsburys, each with around 16%. Morrisons follows behind with almost 11% market share. (Read more)

Topics: Supermarkets
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Posted by Fuzzyfish on 24 December 2014, 11:55 AM

'Tis the season for selling shares...

To the tune of 'Deck the Halls' :-)

  (Read more)