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19 September 2021
13:35 hour

The Tesco share price: is a buyout on the cards?

The Motley Fool UK

14/09/2021 - 17:16

The Tesco share price has risen 15% in less than three months. Here's why Charles Archer believes it might be a good defensive addition to his portfolio. The post The Tesco share price: is a buyout on the cards? appeared first on The Motley Fool UK.


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  1. $MX Magnachip Semiconductors 35$ Buyout 20% upside (11/06/2021 - Reddit Stock Market)
    Magnachip semiconductors has been pending a buyout of 29$ per share since late march and the deal and terms have been up in the air and under much speculation. This morning a new unsolicited bid of 35$ per share was announced and under consideration. Currently trading at 28$ per share premarket as it has already shot up due to the news. Definitely worth looking into as the company is undervalued already without the deal. Obviously there are risk with buyouts and things can fall through, but there is 20% upside from the current share price of 28$ and the announced buyout or 35$. Do your own DD and research this isnt financial advice but definitely something to look into!   submitted by   /u/631Zach [link]   [comments]
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  4. Could the Tesco share price be a buyout target? (27/06/2021 - The Motley Fool UK)
    Last week, Morrisons — the UK’s fourth-largest supermarket chain — received a buyout offer from a US private equity firm. When the deal was announced, shares across the sector, including the Tesco (LSE: TSCO) share price, rose as investors speculated that another company might also attract attention.  Tesco is the largest supermarket retailer in the country, but that doesn’t mean it’s immune from a buyout offer. In fact, the company looks ripe for a takeover.  Tesco share price takeover Before I continue, I should say that this is only speculation. There’s no guarantee an offer will emerge for the company. At the time of writing, no offer has been made, and there are no rumours that one may arrive.  Still, that doesn’t mean one won’t happen.  Morrisons appears to have attracted takeover interest due to its strong balance sheet, property portfolio, and cash generation.  These are all qualities Tesco has as well. What’s more, I could argue that Tesco has a better management team, stronger brand, and more room for growth than its smaller peers.  The stock also looks incredibly cheap, especially when compared to its US peers.  Management is targeting an annual free cash flow of £1.2bn. Compared to its market capitalisation of £17.3bn, this implies the company is trading at a free cash flow yield of 6.9%. Retail giant Walmart is trading at a ratio of 5.5%, suggesting Tesco is about 20% cheaper.  Morrisons isn’t the only UK retailer that has received a takeover offer recently. Last year Asda was acquired for £6.8bn by petrol station entrepreneurs the Issa brothers and private equity firm TDR Capital.  I think these factors support my thesis that the Tesco share price is cheap and could receive a buyout offer.  Not guaranteed With a market capitalisation of £17.3bn, however, the company’s size may stand in the way, although it may not deter the largest buyers. Including debt, buyers may have to pay £30bn for Tesco. That might seem like a lot, but private equity fund managers raised €120bn in the first half of 2021 alone.  Having said all of the above, even if an offer for the retailer does emerge, there’s no guarantee it will get past the Competition and Markets Authority or government. There have already been calls for the government to intervene and stop a potential Morrisons takeover. Any offer for Tesco would likely face the same criticism.  What does this mean for shareholders? Well, it is clear to me that the Tesco share price is undervalued. Moreover, based on recent activity, it seems that private equity investors can see a lot of value in the UK supermarket sector, and I think it would be foolish to overlook this activity.  As such, I would buy the stock for my portfolio. Not only does it look cheap, but the stock also offers a dividend yield of 4.5%.  The post Could the Tesco share price be a buyout target? appeared first on The Motley Fool UK. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading Should I buy FTSE 100 shares Lloyds, Tesco, or Glaxo in July? Top British stocks for July Should I buy Tesco shares today at 224p? Are Tesco (LON:TSCO) and GlaxoSmithKline (LON:GSK) deep value investments? Are Tesco shares worth buying? Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has recommended Morrisons and Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  5. A question about buyouts with Nuance/MSFT as an example (12/04/2021 - Reddit Stocks)
    It has been released that Microsoft plans to buy out Nuance at a price of $56/share (and yes, I know that the deal hasn't been closed, but for the purpose of this question let's assume it will close under these terms). NUAN is up significantly today but still trading below the buyout price of $56; it's at about $53.25 at time of this post. Wouldn't it make sense to still buy NUAN shares now given those shares have to be bought by Microsoft at the higher buyout price? If this is true, one would still make a 5% return in this case if they bought now.   submitted by   /u/humblepharmer [link]   [comments]
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  6. Is there any reason not to dump a ton into MX? Because of buyout. (14/05/2021 - Reddit Stocks)
    For those that don’t know: https://www.google.com/amp/s/www.marketwatch.com/amp/story/magnachip-stock-soars-toward-a-record-after-14-billion-deal-to-be-acquired-by-wise-road-capital-2021-03-26 MX is being bought out and going private. Shareholders will receive 29/share. Current price is 22.xx. The board approved the buyout in march. All that is left is a shareholder vote and standard regulatory approvals. Supposed to occur in the latter half of 2021. I recently put 5k (35% of portfolio) into this with an average cost of 23.76. And now it’s dipped even lower to where returns are approaching 30% at the current price. I’m still fairly new so I’ve not seen this happen yet with stocks I’m I hold. How unlikely is this not to go through? I can’t imagine shareholders would vote against free money. Is it common such buyout is not approved by the SEC? It seems like this is a pretty good investment now.   submitted by   /u/HotMessMan [link]   [comments]
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  7. Can the Tesco share price keep climbing? (19/09/2021 - The Motley Fool UK)
    The Tesco (LSE: TSCO) share price has surged in recent months. Buoyed by the company’s growing profits and takeover speculation in the rest of the sector, the stock’s produced a total return of 15% since the end of June. Over the past 12 months, it’s returned -1.8%.  The stock’s recent performance stands out in contrast to its long-term record. Over the past decade, the stock’s returned -3.3% per annum, including dividends.  I can trace this poor performance back to a couple of factors. First of all, the company’s accounting scandal in 2014 took years to put right. It’s only recently regained the market’s confidence. At the same time, the group’s been fighting a bitter war with sector rivals. Discount retailers have chipped away at its market share and profit margins.  And then, there have been the challenges of Brexit and the pandemic. These events have layered extra costs on the business, slowing down its return to growth. However, it now looks as if the enterprise is beginning to put these challenges behind it. As such, I think the outlook for the Tesco share price can continue to improve.  Moving on I think it’s fair to say 2020 was a year no retailer wants to revisit. Even though supermarket retailers such as Tesco saw an uplift in sales as other ‘non-essential’ stores were forced to close, they still had to contend with the challenges of the pandemic. These brought with them extra costs, which consumed virtually all of their additional profits.  At the same time, Tesco had to contend with the additional challenges of Brexit. It’s to be hoped (but not guaranteed) that we’re through the worst of these challenges, and management can now focus on the group’s growth once again.  On this front, Tesco has tremendous potential. The company has been doubling down on its consumer offering in recent years. The launch of the Clubcard Plus scheme and additional investments in online deliveries, as well as in-store, are resonating with consumers. For the 13 weeks to the end of May, total group sales in the UK and Republic of Ireland increased 8.7%, compared to 2019 levels on a like-for-like basis. Online sales were up 82%.  Tesco share price growth  Growth may have slowed as the economy’s reopened, but I think the firm’s still in an excellent place to continue to expand. This should drive the Tesco share price higher.  Management’s looking to generate around £1.4bn a year in free cash flow from operations. This will provide the enterprise with additional capital to invest in growth and potentially increase shareholder returns. As well as the company’s growth potential, the stock also supports a dividend yield of 3.9% at current levels.  Based on all of the above, I think the Tesco share price can keep rising. That’s why I’d buy the stock for my portfolio today.  However, I’m well aware that the group may face challenges as we advance. These could include higher labour and food costs, which it may not be able to pass on to consumers. Competition in the food sector may also mean its customers start to shop elsewhere.  The post Can the Tesco share price keep climbing? appeared first on The Motley Fool UK. Inflation Is Coming: 3 Shares To Try And Hedge Against Rising Prices Make no mistake… inflation is coming. Some people are running scared, but there’s one thing we believe we should avoid doing at all costs when inflation hits… and that’s doing nothing. Money that just sits in the bank can often lose value each and every year. But to savvy savers and investors, where to consider putting their money is the million-dollar question. That’s why we’ve put together a brand-new special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation… …because no matter what the economy is doing, a savvy investor will want their money working for them, inflation or not! Best of all, we’re giving this report away completely FREE today! Simply click here, enter your email address, and we’ll send it to you right away. More reading Tesco vs Aviva: which is the best FTSE 100 stock to buy? The Tesco share price: is a buyout on the cards? Should I buy Tesco shares today? Is the Tesco share price now too cheap to miss? Will the Tesco share price keep climbing in September? Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has recommended Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  9. At 226p, is the Tesco share price a bargain? (24/05/2021 - The Motley Fool UK)
    After consolidating its shares in February and paying a special dividend of 50.93p, the Tesco (LSE: TSCO) share price has stayed mainly flat ever since. This is despite the company announcing fairly strong full-year results. As such, do I think that the Tesco share price is too cheap or is there very limited upside potential? Trading update The trading update had many positive aspects, as well as some issues. From a positive perspective, revenues were fairly strong at £57.9bn. This was only a 0.4% drop from the previous year. Furthermore, excluding fuel sales, revenues were actually 7% higher than the previous year. A 7% rise is impressive and demonstrates how Tesco has performed well during the pandemic. This result also shows the negative impact of fuel sales on revenues, something that should be able to improve this year due to rising oil prices and more demand.   Notwithstanding the special dividend, Tesco’s dividend also came to 9.15p for the year. This equates to a yield of 4%, and I can see limited risk of it being cut any time soon. In comparison to the majority of other FTSE 100 stocks, this is strong. Nonetheless, operating costs for the firm did increase, and this meant that operating profits were 28% lower than the previous year. This was also due to the poor performance of Tesco Bank, which saw a full-year loss of £175m. As such, the trading update was not all positive, and this means that the Tesco share price has not risen significantly since. What does the future hold? Fortunately for the supermarket, many of its Covid-linked costs are likely to be short term. This means that I can see a recovery of profits for the company over the next couple of years. Furthermore, Tesco was able to increase its market share for the first time in four years, showing promise for the future. As such, I believe that steady growth is on the cards. Nonetheless, this recovery of profits is far from guaranteed. Indeed, there’s the risk that customers start spending significantly less at supermarkets in favour of going out to restaurants and pubs and shopping at other retailers now they’re open. If the number of customers favouring online shopping decreases after the pandemic, this may also benefit discount supermarkets such as Lidl and Aldi, that don’t have an online presence. As such, the increase in Tesco’s market share may be short-lived. Is the Tesco share price too cheap? With a price-to-earnings ratio of 19, the Tesco share price looks reasonably priced to me, rather than an absolute bargain. This means that I can’t see significant upside potential and I’m not going to add it to my portfolio. Nonetheless, this doesn’t mean that I think Tesco is a bad stock. Indeed, its dividend of over 4% is very tempting, and compared to the other supermarkets, I would say that it has a competitive edge. I just feel that there are other stocks out there with higher growth potential. This is why I’m not buying Tesco now.  There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading The Tesco share price is cheap, but I prefer this FTSE 250 stock instead 3 reasons why I think the Tesco share price can rise I’d invest £1k in Tesco shares Will Morrisons beat the Tesco share price in 2021? Is the current Tesco share price a buying opportunity? Stuart Blair has no position in any of the shares mentioned. The Motley Fool UK has recommended Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post At 226p, is the Tesco share price a bargain? appeared first on The Motley Fool UK.
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  10. The Sainsbury’s share price rose 15% yesterday. Would I buy it? (24/08/2021 - The Motley Fool UK)
    Would I buy Sainsbury’s (LSE: SBRY) shares after their big rise on Monday? To answer that question, I think it is essential to first consider why they rose so much. The FTSE 100 supermarket’s share price increased to 341p, a level not seen in years. According to reports I read, this was either a seven- or a 15- year high. My own data showed a somewhat more subdued high of three years. Whichever way we look at it though, it is clear that there was a sharp increase. This followed speculation that it might be a buyout target.  Why did the Sainsbury’s stock jump? After Asda’s sale to private equity funds earlier this year and the process underway for Morrisons as well, it now appears to be Sainsbury’s turn. According to news reports, the US-based Apollo Management Group has offered it a price of £7bn. If Sainsbury’s shows an interest, it is quite likely that the price will be revised upwards over time.  This is because right now, this is exactly the price offered to Morrisons, which is only the fourth largest supermarket in the UK compared to Sainsbury’s, which is the second largest, smaller only than Tesco. Moreover, since the initial offer for Morrisons came in during June, its price has been bid up by 27%. Even though the actual valuations of the two companies can differ based on their individual financial profiles, it does seem reasonable to think that better offers could be coming.  And if its valuation increases, so will its share price. Morrisons’ share price is up over 60% from the time the initial offer came in. And it is exactly this speculation that drove up Sainsbury’s share price yesterday as well. What’s next for its share price? Whether it rises further or not will depend on the supermarket’s reaction to. If there is no progress on buyout talks, I think the share price could fall from here. The next few days will tell us exactly what is going on, but by the time that we get some clarity, I reckon its share price would have reflected events.  My point here is this. It is already too late to buy the stock speculatively for fast gains. I may make some gains, but will they be worth my while? I have no way of knowing right now, and this is really not my investing style either.  What I’d do If I really have to buy a supermarket stock, I would much rather buy Tesco. In a comparison of the two I first did in 2019, it was already clear that Tesco is better prepared to transition to next-generation shopping. The pandemic proved this as it quickly adapted to the new normal with an improvement in its digital sales platform. Also, in 2019 Tesco’s stability was preferable to Sainsbury’s more adventurous approach at the time, referring to its proposed merger with Asda. I think that assessment is still true today.   The post The Sainsbury’s share price rose 15% yesterday. Would I buy it? appeared first on The Motley Fool UK. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Is the Sainsbury’s share price (SBRY) about to explode? FTSE 100: 2 shares I’d buy with £1,000 today 4%+ dividend yields! Should I buy these UK shares in my ISA? Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK has recommended Morrisons and Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  11. Where will the Tesco share price go in September and beyond? (22/08/2021 - The Motley Fool UK)
    If the Morrisons buyout has done one thing, it’s focused investors’ attention on supermarket shares, including Tesco (LSE: TSCO). The Tesco share price has picked up since the middle of June. And Sainsbury has benefited too, following the trend. But after a couple of years of outperforming the FTSE 100, is there still value left for investors today? Fresh news from Morrisons came on Friday, as the supermarket giant accepted the latest improved offer from Clayton, Dubilier & Rice. The new bid from the US equity group values Morrisons at £7bn. That beats the previously recommended offer of £6.7m from fellow US investor Fortress. The Morrisons share price has soared 60% since June, so does that suggest Tesco shares are undervalued? Well, I’m not expecting to see a gain anything like that any time soon. And I really don’t think we’ll see an acquisition approach for the UK’s biggest groceries retailer either. The big jump in the Morrisons share price since the bids started coming in does need to be seen in context. Morrisons had lagged behind the other two over the past two years. So it was arguably on the most attractive valuation in the sector. And with that comes an implication that maybe Tesco is not undervalued after all. On trailing earnings from February 2021, the current Tesco share price gives us a price-to-earnings of more than 26. It also drops last year’s dividend yield to 3.7%, from 4.1% on year-end prices. That’s bang on the forecast for the FTSE 100 overall, which takes in all the very low dividends too. Is Tesco overvalued now? The FTSE 100 is still depressed from the pandemic, and is facing headwinds from the inflationary pressure that’s almost certainly ahead of us. Comparatively, with a significantly higher P/E than the index average, I can see a plausible argument that Tesco has risen into overvalued territory now. Still, that valuation might slip back should Tesco improve on its earnings this year. The first quarter, to 29 May, was heading in the right direction. Total retail sales rose 8.1% ahead of the same period in 2020. Tesco did also enjoy a 9.3% rise in like-for-like sales, so we’re looking at significant gains from the pre-pandemic period. But we weren’t out of pandemic restrictions during Q1. And it’s surely going to take a couple of quarters of post-lockdown business before were can get a good handle on Tesco’s underlying trends. Tesco share price weakness? Now we’re free to go and shop wherever we choose, some of the impetus behind Tesco online shopping could well tail off. And that, I think, could put pressure on the Tesco share price. The advantages might be swinging back in favour of Aldi and Lidl. Those two don’t compete with Tesco’s home delivery service. But they still offer cut prices. And though expansion targets will be late being met thanks to Covid, they’ll be getting back on course. Saying all that, I still rate Tesco as a good long-term dividend investment. I just suspect we could see a little share price weakness in the coming months. It’s one to buy on the dips, perhaps. The post Where will the Tesco share price go in September and beyond? appeared first on The Motley Fool UK. Inflation Is Coming: 3 Shares To Try And Hedge Against Rising Prices Make no mistake… inflation is coming. Some people are running scared, but there’s one thing we believe we should avoid doing at all costs when inflation hits… and that’s doing nothing. Money that just sits in the bank can often lose value each and every year. But to savvy savers and investors, where to consider putting their money is the million-dollar question. That’s why we’ve put together a brand-new special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation… …because no matter what the economy is doing, a savvy investor will want their money working for them, inflation or not! Best of all, we’re giving this report away completely FREE today! Simply click here, enter your email address, and we’ll send it to you right away. More reading 3 cheap UK dividend shares to buy Is this FTSE 100 stock one to buy in September? I’d listen to billionaire Bill Ackman and buy these FTSE 100 shares for my ISA Is Tesco stock too expensive? Should I buy FTSE 100 stock Tesco in August? Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has recommended Morrisons and Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  12. Any news about MX buyout? (19/05/2021 - Reddit Stocks)
    About a month ago MX was going to be bought by WR and go private for a 28$ per share but encountered some bureaucratic difficulties. Since then I literally couldn't find any news about the buyout and the only info is about a Korean manager buying a foundry that was separated from magnachip years ago. Given the ongoing sell-off and MX is in the green, did I miss something?   submitted by   /u/Lissus92 [link]   [comments]
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  13. Is the Tesco share price a FTSE 100 opportunity or one to avoid? (22/04/2021 - The Motley Fool UK)
    I believe Tesco (LSE:TSCO) has represented a safe investment in the past, even during the market crash. Since the turn of the year, the Tesco share price has lost over 20% of its value. With that in mind, I want to know whether the FTSE 100 incumbent is currently a good opportunity or one to avoid. Tesco share price activity Like many FTSE 100 firms, the Tesco share price has not returned to pre-crash levels. It did experience a spike briefly but since January 2021 has declined once more. There are a few reasons behind this but more on that later. As I write this, the Tesco share price is trading for 223p per share. Days prior to the market crash, I could buy shares for over 320p per share. The market crash affected most firms on the FTSE 100 index. Since that time, Tesco’s price has staged a mini revival and by the end of January was trading for over 310p per share. Special dividends, share consolidation & a trading update A trading update released last week could also be behind to the falling Tesco share price. I think a special dividend in February and share consolidation affected its price more so. Here’s how and why. Tesco decided to return almost £5bn to its investors back in February via a special dividend of 50.93p per share. It also involved a consolidation of its share capital. The payout and consolidation came on the back of the sale of its operations in Thailand and Malaysia last year. As a result of this payout, Tesco also decided to consolidate its share capital. It used a 15-for-19 share consolidation. This means it issued 15 new ordinary shares for every 19 existing ones. For example, an investor with 100 existing shares now find themselves owning 78 new ones. A share price dip usually occurs when such events happen.  As for Tesco’s recent trading update, there weren’t many surprises to my eyes. Operating profit fell close to 30% and retail cash flow also fell by the same margin. The Tesco share price could have benefited by its announcement to maintain its dividend. FTSE 100 opportunity At current levels, the Tesco share price could be a potential bargain. It has maintained its dividend, a few months after paying out a special dividend. It also used some of the cash from the sale of its Asian operations to pay £2.5bn into its defined benefit pension scheme. This eliminated the funding deficit and removed the need for additional contributions. In turn, this will improve operating profit in future years. Furthermore, it has reduced its debt level in the time of a financial crisis. I do have some reservations about Tesco. These are mainly linked to competition. Now more than ever, consumers are looking to make their money stretch further. With cut price competitors like Lidl and Aldi gaining market share, the so-called Big Four (of which Tesco is one) have seen revenues and profit affected. This could increase further. Lidl and Aldi do not offer online shopping. This is where Tesco could still benefit. Many consumers shopped online for the first time in the pandemic. They could continue to do this, which would boost Tesco. Overall, there are risks, as with any FTSE 100 stock, but along with my Foolish colleague, I do think the Tesco share price is an opportunity at this moment. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Should I buy Tesco shares at the current price? The Tesco share price is down 20% in 2021. Here’s why I want to buy Is the Tesco share price too cheap to miss? Is the Tesco share price too cheap at current levels? The Tesco share price looks cheap to me: here’s why I’d buy Jabran Khan has no position in any shares mentioned. The Motley Fool UK has recommended Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Is the Tesco share price a FTSE 100 opportunity or one to avoid? appeared first on The Motley Fool UK.
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  14. SKLZ (Skillz Inc.) Jumps on Rumour of Buyout (31/08/2021 - Reddit Stocks)
    SKLZ is rumoured to be bought out by MGM. The last offer was for $24 a share and the president of SKLZ rejected the offer, saying it was worth more. Not sure what the new buyout offer will be, but expecting SKLZ to reach new highs   submitted by   /u/SavienKennedy [link]   [comments]
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  15. We will be back issuing cards by mid-September, huge potential to tap: Shalini Warrier, executive director, Federal Bank (11/08/2021 - Financial Express)
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  16. Here’s why the Tesco share price dropped 10% in February (06/03/2021 - The Motley Fool UK)
    The Tesco (LSE:TSCO) share price has taken a bit of a tumble over the past few weeks. But is this an opportunity to buy the stock at a discount? Let’s take a look at what’s going on and see whether I should consider adding Tesco to my income portfolio. Why did the Tesco share price fall? In December last year, Tesco announced that it had successfully completed the sale of its business in Malaysia and Thailand for $10.6bn (£7.6bn). Following shareholders’ approval at the annual meeting last month, £5bn of the proceeds were paid out via a special dividend. And the rest has been used to bolster the firm’s employee pension fund. The ex-dividend date was set for February 15, with the actual pay date a week or so later. Following this, the Tesco share price fell. Why? Well, if £5bn is removed from a business, then obviously that business is worth £5bn less. Fortunately, this also means that the price drop was not due to any underlying problems with the company. An opportunity to buy Tesco shares cheaply? The Tesco share price is still trading firmly below its pre-pandemic levels. However, whether it will return to a higher price any time soon seems doubtful to me. After all, it was a much larger business back then. But encouragingly, earnings are currently forecast to almost double from 13.8p a share to 23.1p. Combining that with a 5.5% dividend yield and the fact that people will always need groceries certainly makes Tesco look like an attractive long-term income stock to me. At least that’s what I think. But I do have some reservations. A changing grocery landscape According to 2020 forecasts by IGD, the UK food and grocery market will grow by a further 10% this year. While this is not an incredibly high growth rate, it’s still respectable in my eyes. However, a closer inspection of IGD’s analysis makes me question whether Tesco is the right stock to capture this opportunity. It seems that most of this growth is going to be driven by online grocery stores like Ocado and discount shops like Aldi. The growth contribution from supermarkets is only forecast to be around 0.8% — not a particularly exciting figure. Tesco has an online retail solution that proved essential to many individuals throughout the last 12 months. But unlike Ocado, which is the world’s largest dedicated online supermarket, the company has to cover the operating costs of all its physical stores. Needless to say, with nearly 4,000 locations in the UK, that quite a considerable expense. The Tesco share price: buy or not? Assuming that Tesco can deliver an EPS of 23.1p, the P/E ratio of the stock based on today’s price is around 9.5. That seems relatively low to me, suggesting that investors may have over-sold after the special dividend was paid. Therefore at the current share price, despite the rising competition, Tesco is still a company I would consider adding to my income portfolio. But I am quite a fan of growth stocks, and there is one which I think is about to explode… FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading 3 reasons why I think the Tesco Share price could head higher in 2021 Should I buy Tesco shares for my portfolio today? UK share investing: should I buy these 3 FTSE 100 stocks in my ISA? Is the falling Tesco share price a buying opportunity? Tesco’s share price has fallen. Should I buy the stock now? Zaven Boyrazian does not own shares in Tesco or Ocado. The Motley Fool UK has recommended Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Here’s why the Tesco share price dropped 10% in February appeared first on The Motley Fool UK.
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  17. The Tesco share price is down 20% in 2021. Here’s why I want to buy (20/04/2021 - The Motley Fool UK)
    Throughout 2020 and the stock market crash, I saw Tesco (LSE: TSCO) as a safe and attractive long-term investment. But we’re now two thirds of the way through April, and the Tesco share price is down 20% since the start of the year. And since the week before the 2020 crash kicked off, the shares are down a headline 28%. With the FTSE 100 having recovered to a mere 7% drop over the same timescale, could my judgement of what makes a safe investment benefit from a little refinement? First, what’s gone wrong? It surely can’t be down to last week’s results. I mean, they weren’t great, but there was no real surprise. Headline operating profit fell 28%, with retail free cash flow down 30%. On a per-share basis, the bottom line showed a 36% drop in EPS. There was, at least, one bit of light — the dividend was maintained. Not as bad as it looks After a Tesco share price dip in February, the day of the results brought little change. So why have the shares done so badly in 2021? As my Motley Fool colleague Roland Head has explained, the headline fall is actually somewhat misleading. Tesco returned £5bn in cash to shareholders in February through a special dividend. To counter the effect of that, there was a 15-for-19 share consolidation. As a result, the February share price dip was technical more than anything. Roland reckons that, allowing for these events, we’re really looking at an adjusted fall in the Tesco share price of only around 4% in 2021. That seems a lot less worrying, but why would there be any weakness at all? The easing of lockdown rules is bringing one key change to our shopping habits. While we were holed up at home and unable to go out shopping as usual, Tesco’s online ordering was a boon. It helped hold back the onslaught of the cut-price cheapies, Aldi and Lidl. But as businesses open up, will their apparently inexorable march resume and continue cutting into Tesco’s market share? Tesco share price future It’s a realistic fear. And with a lot of people having suffered financially, the importance of finding the lowest prices could be greater than ever. But many shoppers who tried home shopping for the first time during the pandemic have found they really do like the convenience. And even though I expect growth to carry on at Lidl and Aldi, I just don’t see everyone abandoning Tesco now. I also see Tesco becoming a lot more financially efficient these days, with a far keener focus on cash flow. And I think that should underpin the share price. The transformation has taken a few years. But in the 2020-21 year, when so many top companies almost folded, Tesco managed to reduced its debt. Year-end net debt stood at £12bn, down 2.8% from £12.3bn a year previously. For a company with annual turnover in excess of £50bn, I see no problem there. There are risks, mostly through competition. But Tesco is a buy candidate for me now. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading Is the Tesco share price too cheap to miss? Is the Tesco share price too cheap at current levels? The Tesco share price looks cheap to me: here’s why I’d buy The Tesco share price is falling: should I buy now? The Tesco share price fell 2% today. But I see it as a winner in 2021/22! Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has recommended Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Tesco share price is down 20% in 2021. Here’s why I want to buy appeared first on The Motley Fool UK.
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  18. The Tesco share price appears to be down 30% since January. But it’s not! (21/06/2021 - The Motley Fool UK)
    Tesco (LSE: TSCO) is one of the UK’s top household names. The supermarket has operations across five European countries, including the UK and Ireland. In 2020, it employed over 423,000 employees at 7,000 stores. There’s a Tesco in almost every major UK location, making the grocer an ever-present part of British life. Furthermore, Tesco has been going for over a century, since Jack Cohen started out in 1919. Also, the UK’s largest supermarket — with a market share of 27% — is a long-term member of the FTSE 100 index. However, the Tesco share price seems to be down sharply since late January. But this isn’t bad news for its shareholders. Here’s why… The Tesco share price’s big move The Tesco share price appears to have plunged in 2021. On 27 January, the shares hit an intra-day high of 317.55p. On 15 February, the stock closed at 244.35p. TSCO closed even lower at 221.75p on Friday, valuing the business at just £17.2bn. That’s a fall of almost 96p — more than three-tenths (30.2%) — in five months. Tesco paid out £5bn in cash Something terrible happened for the Tesco share price to collapse so hard, right? Wrong, because it paid out a huge cash sum to shareholders in February, while reducing the number of shares. Hence, this perceived price fall hasn’t actually harmed TSCO owners. The Tesco share price dived in mid-February because the group shook up its balance sheet to return cash to shareholders. On 15 February, the shares went ex-dividend for a special dividend of 50.93p per share. The special dividend was paid on 26 February to shareholders owning TSCO on 12 February. It totalled £5bn and represented some of the proceeds from selling Tesco’s operations in Malaysia and Thailand. Also, the share base was reduced by using a ‘reverse stock split’. This replaced 19 ‘old’ shares with 15 ‘new’ shares. This made ‘new’ shares more valuable, because the number of shares in issue reduced by more than a fifth (21%). This explains the abrupt change in the Tesco share price. Today, as well as owning their shares, Tesco shareholders are also £5bn in cash richer. Checking the Tesco share price before and after this event helps illustrate what really happened. On 12 February, it closed at 304.76p and then finished at 244.35p on 15 February. This 60.41p fall reflects the underlying effect of both corporate actions. Friday’s closing share price of 221.75p is 22.6p (9.2%) below the 15 February closing price, making the shares even cheaper to buy today. Here’s how the shares have actually performed over eight timescales, taking the share consolidation into account: 1 week -2.7% 1 month -4.3% 3 months -1.9% 6 months -2.1% 1 year -2.1% 2 years -5.8% 3 years -13.5% 5 years +45.3% As you can see, the Tesco share price has declined over periods ranging from one week to three years. However, the shares are up by more than four-ninths (45.3%) over five years. This shows the value of long-term investing for capital gains. I’d buy TSCO today For me, the attraction of Tesco shares is their dividend yield of 4.5%. That’s roughly one percentage point higher than the FTSE 100’s yield. However, it’s not been so easy for Tesco in 2021, as its latest quarterly results revealed on Friday. Sales growth is slowing and cash flow is likely to fall. Also, the chain remains under relentless attack from German discounters Aldi and Lidl. But while I don’t own TSCO today, I’d happily buy at the current price for passive income. The post The Tesco share price appears to be down 30% since January. But it’s not! appeared first on The Motley Fool UK. Our 5 Top Shares for the New “Green Industrial Revolution" It was released in November 2020, and make no mistake: It’s happening. The UK Government’s 10-point plan for a new “Green Industrial Revolution.” PriceWaterhouse Coopers believes this trend will cost £400billion… …That’s just here in Britain over the next 10 years. Worldwide, the Green Industrial Revolution could be worth TRILLIONS. It’s why I’m urging all investors to read this special presentation carefully, and learn how you can uncover the 5 companies that we believe are poised to profit from this gargantuan trend ahead! Access this special "Green Industrial Revolution" presentation now More reading The Tesco share price fell on earnings. Is it time to buy? Should I buy Tesco shares before October? The Tesco share price has fallen this week. Here’s why I’d buy Why I’d buy the Tesco share now The Tesco share price is down but I’d still buy Cliffdarcy does not own shares in Tesco. The Motley Fool UK has recommended Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services, such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool, we believe that considering a diverse range of insights makes us better investors.
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  19. Passive income stocks: should I buy Tesco shares right now? (08/02/2021 - The Motley Fool UK)
    Up until now, Tesco (LSE: TSCO) was hanging pretty well since the pandemic started in February last year. Tesco shares have already gained nearly 4% since the beginning of the year. They are currently trading around their pre-Covid-19 levels. At this price, I think many investors and hedge funds would consider Tesco an attractive investment for 2021 and beyond. More importantly, a recent special dividend announcement and a share consolidation plan are cause for growing interest in Tesco shares. I don’t think it’s clear yet how investors will respond to this announcement in the short term. But as a long-term value investor, I think this is a great opportunity to buy Tesco shares. Tesco announces £5 special dividend, share consolidation Last week, Tesco announced a special £4.99bn dividend following the sale of its Asian arm last year. The company is distributing all of the £7.8bn it generated from the sale of its operations in Thailand and Malaysia. It is adding the remainder to its pension program.  On Friday, 12 February 2021, the company will hold a virtual general meeting to announce that shareholders will receive 15 new shares for every 19 shares that they own. Tesco’s 50.93p dividend payout is worth around a fifth of the current share price, and could potentially cause a big drop in price. There’s also a risk that existing investors that might face potential tax bills from Tesco’s special dividend payout. To prevent that, Tesco expects to complete the share consolidation to maintain share prices at comparable levels. Essentially, Tesco shares will trade at the same price following the share consolidation as they did before. However, the number of total shares will be reduced. Tesco dividend In the current circumstances, Tesco pays out a dividend of 6.5p per share or nearly 4% interest annually. While this does not put Tesco among the high-yield paying dividend stocks in the UK share market, the largest British retailer is still, in my view, one of the safest options out there in terms of predictability and distribution of dividends. The bottom line Overall, I see more reasons to be optimistic right now about Tesco’s future. The £5bn special dividend announcement has prompted Tesco’s share price rise. On top of that, Tesco has reported record Christmas sales, when it experienced a boost of £1bn in extra sales during the holidays.  Looking at the numbers, I reckon Tesco remains a solid passive income stock. It operates in a defensive industry and its market share is not likely to be shaken in the near future. Yes, there are lots of challenges ahead for Tesco. The biggest challenge of all is Brexit disruptions. This has already caused a major problem for Tesco in delivering food supplies to Northern Ireland.  At the same time, Tesco is still the second-largest grocery business in Ireland and the biggest player in Northern Ireland. And, in 2020, Tesco had the largest market share in the UK with 27%. So overall, with an attractive dividend payment history and an annual yield of nearly 4%, I think that unless the market crashes in 2021, Tesco’s share price could rise further over the coming months. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading The Tesco share price is rising! Should I buy the stock now? 2 FTSE 100 shares I think Warren Buffett would buy FTSE 100 watch: why I’m not bowled over by the cheap Tesco share price! Should I buy Tesco shares now? The Tesco special dividend: what investors need to know Tom Chen has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Passive income stocks: should I buy Tesco shares right now? appeared first on The Motley Fool UK.
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  20. The Tesco share price looks cheap to me: here’s why I’d buy (17/04/2021 - The Motley Fool UK)
    The Tesco (LSE: TSCO) share price fell after the company published its annual results last week. The market didn’t seem impressed, perhaps because new CEO Ken Murphy didn’t promise any short-term measures to juice up the share price. Personally, I was impressed by the numbers. Tesco’s profits were bound to take a hit last year, due to £892m of extra costs from Covid-19. But my sums suggest that as life returns to normal, the UK’s largest supermarket should stage a strong recovery. It’s all about cash for me For me, what really matters is whether an investment can generate reliable, rising cash returns. I admit that supermarkets, including Tesco, have delivered a mixed performance over the last decade. Tesco’s share price history since 2011 tells the story — it’s not been pretty. However, I believe former chief executive Dave Lewis has transformed Tesco into a focused, disciplined cash-generating machine. Last week’s accounts showed that the retailer generated £1,187m of surplus cash during the year to 27 February. Although that’s 30% less than in 2019/20, this was still enough to fund the dividend (£700m) and a £300m reduction in net debt. Given the events of last year, I think that’s a strong result. I expect Tesco’s cash generation to bounce back quickly this year, providing support for dividend growth. Why has Tesco’s share price fallen this year? I’ve seen a lot of talk about Tesco shares falling this year. Actually, I don’t think they have — at least, not much. What’s really happened is a bit technical, so bear with me. In February, Tesco returned £5bn in cash to its shareholders, through a special dividend of 50.9p per share. This money came from the sale of the group’s Asian business. Taking such a large sum of cash out of the business would have made the stock fall by around 50p (about 20%). To prevent this, the company carried out a share consolidation. What this means is that the number of Tesco shares in issue was reduced. The aim of this consolidation was to cancel out the effect of the special dividend, so the share price would stay the same. Each shareholder received 15 new shares for every 19 old shares they owned (which were cancelled). This was all done automatically. I don’t think Tesco’s share price has fallen much this year. After adjusting for the share consolidation, I see Tesco stock down by just 4% since 1 January. No big drama. Why I’d buy At the time of writing, Tesco’s share price is hovering around 225p. I think that offers decent value, but as with any equity investment, there are some risks. We don’t yet know how shoppers’ habits will change after the pandemic. Tesco’s big stores worked in its favour last year. But before the pandemic, the opposite was true. Many shoppers were switching to more frequent shops in smaller local stores. Competition is also likely to remain tough. Aldi and Lidl lost out last year because they don’t do home delivery. But both discounters are continuing to open new stores. I expect many of them will be located close to Tesco supermarkets. Despite these headwinds, I think Tesco’s size will continue to work in its favour. With the stock offering a forecast yield of 4.8% for the year ahead, I’d put these shares in my trolley today. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading The Tesco share price is falling: should I buy now? The Tesco share price fell 2% today. But I see it as a winner in 2021/22! Why is the Tesco share price falling? The Tesco share price is falling. Here’s why I’d buy Should I buy or avoid Tesco shares? Roland Head has no position in any of the shares mentioned. The Motley Fool UK has recommended Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Tesco share price looks cheap to me: here’s why I’d buy appeared first on The Motley Fool UK.
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  21. Tesco launches market-leading 0% spending credit card: here’s how it compares (13/09/2021 - The Motley Fool UK)
    Tesco Bank has launched a new 0% purchase credit card, offering a 22-month interest-free period. So how does it compare with other 0% credit card deals? And what should you look out for? Here’s the lowdown. [top_pitch] What is a 0% credit card? With a 0% purchase credit card, you don’t pay any interest when spending on it within the 0% period. Because of this, using a 0% card is one of the cheapest ways to borrow. In fact, if you use this type of card in the right way – by clearing your balance by the end of the 0% period – you can effectively borrow for free. To use a 0% credit card correctly, you must be disciplined. That’s because if you don’t clear your balance by the end of the 0% period (or transfer the balance to another card), then you’ll start paying interest on your purchases. For this reason, only ever consider a 0% credit card if you know you’ll be able to manage it properly. It’s also worth knowing that a 0% interest-free period doesn’t mean there’s nothing to pay. To keep the interest-free periods on these cards, you will have to make at least the minimum payment each month. The easiest way to do this is to set up a monthly direct debit. For example, if a 0% credit card offers a 12-month interest-free period, you can make the minimum repayment for 11 months, and then clear your full balance by the twelfth month to avoid paying any interest. For more information on how these cards work, see our guide on 0% purchase cards. What is Tesco Bank’s new 0% credit card offering? Tesco Bank’s new 0% credit card offers an interest-free period of up to 22 months. This is the longest 0% period on the market. However, not everyone will get the market-leading 0% period. You may be offered 18 or 14 months at 0% instead, depending on your credit score and individual circumstances. As an added boon, you can earn Clubcard points when you use the card. You earn five points for every £4 spent in Tesco, and one point per £8 spent elsewhere. Do note, however, that this applies to each transaction, so if you don’t spend at least £8 in one go (outside of Tesco), you won’t earn anything. At the end of the 0% period, the representative APR is 20.9%. [middle_pitch] How does Tesco Bank’s 0% deal compare? Tesco Bank’s new 0% credit card cannot be beaten, as long as you qualify for the full 22-month interest-free period. However, there are a number of 0% cards offering slightly lower 0% periods. If you’re a Nectar cardholder, Sainsbury’s Bank currently offers a 0% credit card with an interest-free period of up to 21 months – just one month less than the Tesco deal. You also collect Nectar points when you spend on the card – two points per £1 spent at Sainsbury’s and one point per £5 spent elsewhere. Plus, there are bonus Nectar points on offer in the first two months. You get an extra 500 Nectar points each time you spend £35 or more at Sainsbury’s, up to a maximum of 5,000 points. The representative APR on this card is 20.9%. If that’s not for you, then both Barclaycard and Lloyds Bank have 0% credit cards offering up to 21 months at 0%. The representative APR on both of these cards is 21.9%.  It’s worth bearing in mind that all of the 0% credit cards above are ‘up to’ cards. This means there’s a chance you’ll be offered a poorer 0% deal depending on your credit score and personal circumstances. If you’d prefer a guaranteed 0% period, then M&S Bank offers 20 months at 0%, and if you’re accepted for the card, you’ll definitely get this length. You can also earn one point per £1 spent at M&S and one point per £5 spent at other retailers. The representative APR on this card is 21.9%. What else do I need to know? When you apply for any credit, including 0% credit cards, you’ll undergo a credit check. If you undergo too many checks in a short space of time, it could negatively impact your credit score. To limit the chances of this happening, you may wish to use our credit card eligibility checker before you apply for any particular card. On a similar note, you may also find it useful to read our tips on how to improve your credit score.  Keen to explore more 0% credit card deals? See our top-rated 0% purchase cards. The post Tesco launches market-leading 0% spending credit card: here’s how it compares appeared first on The Motley Fool UK. 5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic… And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains. But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times. Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down… You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm. That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now! More reading One beaten-down growth stock to buy and one to avoid Travel news: what’s next after the traffic light system is scrapped? The best shares to buy now for a passive income Is the Amigo share price back from the dead? Why I’d buy Boohoo after its share price decline
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  22. Should I buy top performing Tesco shares now? (12/07/2021 - The Motley Fool UK)
    Last week, Tesco (LSE:TSCO) shares were the top performing FTSE 100 stock. The share price rose 6.5%, during a week in which the whole index was broadly flat. I think there are a few reasons for this short-term boost for the largest UK supermarket by market share. However, as someone who isn’t already invested in the company, I’m not sure it represents the best buy for me right now. Reasons for the Tesco share rally One reason for the boost in Tesco shares in my opinion is the carry-through from its positive Q1 results released a few weeks back. The results showed impressive growth, with like-for-like sales up 8.1% versus two years back. Looking at two years ago gives a fairer pre-Covid comparison.  Customer satisfaction is also ahead of the other supermarkets that make up the Big 4 category. The fact that growth is still being shown and customers are still happy, even though Tesco is already the largest supermarket, impresses me. I think this helped the rise in Tesco shares last week. After all, not everyone can buy shares immediately after results. Some larger institutional investors take time to analyse in detail and then present a case for investment. So the rise last week could be with some slower-moving investors buying in. Another reason for the rise is likely due to the bidding situation with Morrisons. It’s been targeted by a private equity company, which sees the supermarket as being undervalued. The Morrisons share price has been surging to reflect the valuation put on it by the private equity suitors. How does this impact Tesco shares? Well, if the supermarket industry in general is undervalued, that could suggest Tesco should be priced higher. And there’s speculation that Tesco might receive a bid from a private equity company too. We’ll have to wait and see on that, but often a rumour can be enough to cause the share price to rally. Risk and reward The top performance last week by Tesco shares is pleasing, but I don’t have a high conviction to buy now. One reason why I could buy is due to the relatively attractive value when looking at the price-to-earnings ratio. It currently sits at around 19. This looks cheap when I consider that the same ratio for Sainsbury’s is 49 and Morrisons is 73. However, the figure for Morrisons has been distorted recently due to the steep rise in the share price, so I need to be careful about making decisions based on one ratio.  Another concern I have is that Tesco is by far the largest supermarket in the UK. It has the most to lose to smaller competitors. For example, with Morrisons being bought, I would imagine a large efficiency drive would be carried out. This could include cost-cutting and trying to push revenue higher by the new owners. This could eat away at revenues for Tesco in the process. Overall, I wouldn’t buy shares in Tesco right now. With all the noise around the industry in general, I’d actually look outside of the supermarket sector to find growth stocks instead. The post Should I buy top performing Tesco shares now? appeared first on The Motley Fool UK. Is this little-known company the next ‘Monster’ IPO? Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead. Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025. The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential. But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving. Click here to see how you can get a copy of this report for yourself today More reading Here’s why I bought Tesco shares With £5,000, 3 top dividend stocks to buy now Is the Tesco share price getting a Morrisons boost? Should I buy Tesco shares as takeover talk heats up? 3 UK dividend shares to buy now jonathansmith1 has no position in any share mentioned. The Motley Fool UK has recommended Morrisons and Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  23. The Tesco share price jumps! Is it too late to buy? (31/08/2021 - The Motley Fool UK)
    The Tesco (LSE: TSCO)  share price has put in a stunning performance over the past few weeks. Since the beginning of June, shares in the company have returned around 15%. Following this performance, shares in the supermarket retailer have produced a total return of 12.4% over the past 12 months.  Tesco share price interest  It looks as if shares in the retailer have pushed higher recently as its peers attracted interest from private equity companies. Morrisons is in the process of being bought out by a consortium of private equity firms, while there’s been speculation Sainsbury’s will succumb to the same fate. But, as of yet, no offer has emerged.  Tesco has yet to be mentioned as a potential buyout target. But that doesn’t mean the company’s immune to a takeover. The group’s portfolio of freehold property and the potential to generate over £1bn a year in free cash flow could be desirable qualities for any buyer.  I think this is the main reason why the Tesco share price has been pushing higher recently. The company may not be the subject of a bid just yet, but the stock’s looked cheap for some time. It appears as if the market is finally starting to realise this business could be undervalued. It seems to be re-evaluating the stock’s prospects as a result.  I believe this trend could continue. At the time of writing, the retailer is selling at a forward price-to-earnings (P/E) multiple of 13.4. Even though its valuation has increased in recent weeks, it’s still below the five-year average of 16. Further, the stock offers a dividend yield of just under 4%. I think that looks attractive in the current interest rate environment. Management has also hinted at the prospect of additional dividends and share repurchases as the company continues to generate high levels of free cash flow.  I think the Tesco share price continues to look cheap, despite its recent performance. As such, I’d buy the stock for my portfolio today.  Growth headwinds However, I’m aware the business faces several headwinds, which could impact growth as we advance. These include rising costs for staffing and transport, which could hurt the firm’s slim profit margins and reduce cash flow. Rising food costs could also lead to reduced customer spending. This would impact overall sales growth. And finally, competition in the UK grocery sector is fierce and only growing. This limits the company’s ability to raise prices if costs do rise.  Even after taking these risks into account, I think the Tesco share price looks attractive. While it seems unlikely an offer will emerge for the whole company, as the UK’s largest supermarket retailer, the group has an unrivalled position in the market. It can leverage this competitive advantage to enhance growth going forward.  The post The Tesco share price jumps! Is it too late to buy? appeared first on The Motley Fool UK. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading The Tesco share price is on the rise. Should I buy for September? Where will the Tesco share price go in September and beyond? 3 cheap UK dividend shares to buy Is this FTSE 100 stock one to buy in September? I’d listen to billionaire Bill Ackman and buy these FTSE 100 shares for my ISA Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has recommended Morrisons and Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  24. Is the falling Tesco share price a buying opportunity? (22/02/2021 - The Motley Fool UK)
    I wrote about the Big Four supermarkets when the market crashed last year. Tesco (LSE:TSCO) was my number one pick of the three supermarkets listed on the FTSE. Recently, the Tesco share price has fallen. Is this a good opportunity to buy even cheaper? Tesco share price decline TSCO completed the $10.6bn sale of its businesses in Thailand and Malaysia to CP Group in December. When the deal was first announced last year, the company promised to return approximately £5bn to investors. An additional £2.5bn was to be used to bolster its pension fund. I believe two events linked to this deal have affected the Tesco share price. First, a special dividend was approved at general meeting of investors. This only had a minor effect on its share price. Then, the company consolidated its shares. If it hadn’t consolidated, the stock would have dropped massively following the dividend payout. The payout equated to 50.93p per share, which is approximately 20% of Tesco’s market cap. Without the consolidation, the Tesco share price might have fallen by a similar amount. Essentially, I believe the consolidation was designed to maintain Tesco’s share price. Since late January, the TSCO share price has fallen close to 10%. This is also the same margin by which it is down over the last 12 months. Investment case When building an investment case for any stock, one of the key indicators I look at is growth potential. So does the current Tesco share price entice me when looking at its long-term growth potential? Tesco at one point had a 30% market share of the UK supermarket industry. It is reported that the industry will grow a modest 15% between 2019 and 2024, which is less than 3% annually. Tesco and its share price has come under pressure from Aldi, Lidl, and Ocado. The Covid-19 pandemic has affected consumer spending habits. Consumers are looking to make their money go further, which is where Aldi and Lidl are better positioned than Tesco. Ocado has excelled due to its online only platform and delivery service. I am not convinced Tesco has enough edge over competition to maintain and build on market share against these other players.  From a financial perspective, the Tesco share price could be buoyed by some positives. Analysts expect Tesco to generate revenue growth, although only just over 1%. Profits are anticipated to rise and earnings per share (EPS) are predicted to rise over 50%. A prospective dividend yield close to 4% is an attractive proposition too. There are a few negatives to the financials. Going back to the dividend, Tesco doesn’t possess a great dividend growth track record. It cancelled its dividend a few years ago. As a savvy investor, I like to invest in firms that consistently increase their dividends. My verdict There is a lot to like about TSCO. The current Tesco share price is attractive. When I drill down into the finer detail, however, there are too many issues and negatives which are putting me off. I do not think TSCO has enough long-term growth potential for my liking. I would rather invest my money elsewhere. With that in mind, here are some of picks from my best stocks to buy now list. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Tesco’s share price has fallen. Should I buy the stock now? Tesco special dividend: what is it and should I buy the shares now? The Tesco share price: here’s what I’m doing now 2 cheap FTSE 100 shares I’ll buy to boost my portfolio Passive income stocks: should I buy Tesco shares right now? Jabran Khan has no position in any shares mentioned. The Motley Fool UK has recommended Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Is the falling Tesco share price a buying opportunity? appeared first on The Motley Fool UK.
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  25. Tesco vs Aviva: which is the best FTSE 100 stock to buy? (17/09/2021 - The Motley Fool UK)
    Tesco (LSE: TSCO) and Aviva (LSE: AV) are two blue-chip UK shares attracting plenty of attention from investors right now. But which is the best FTSE 100 stock to buy? Time to buy Tesco? The Tesco share price looks exceptionally attractive at current levels of 257p. City analysts think the supermarket’s earnings will leap 148% this fiscal year, leaving it trading on a forward price-to-earnings growth (PEG) ratio of just 0.1. Its 3.7% dividend yield also beats the broader FTSE 100 forward average of 3.4%. However, it could be argued that Tesco’s low valuation reflects its rising risk profile. First off, the supply chain problems that have hiked costs and resulted in empty shelves might be a long-term issue in a post-Brexit environment, as a recent letter from Marks & Spencer to its suppliers recently highlighted. My biggest fear for the Tesco share price is the increasingly competitive environment which threatens to shrink its ultra-thin margins even more. Today, the pressure mounted further as the Co-op entered the online battle by offering a same-day delivery service via Amazon’s Prime service. Meanwhile, discounters Aldi and Lidl continue on a course of rapid store expansion. And it’s possible Lidl will follow its German rival’s recent entry into e-commerce before too long. Tesco’s still Britain’s biggest retailer by quite a margin. Theoretically it has the experience and the financial clout to see off its rivals and still deliver robust shareholder returns. Furthermore, the FTSE 100 grocer has the best online shopping operation in the business. However, it’s my opinion that the business may have to paddle even harder just to stand still. A better FTSE 100 dividend stock to buy I’d much rather ignore the low Tesco share price to buy other cheap UK shares. Which brings me neatly onto Aviva (LSE: AV). This fello FTSE 100 stock also offers plenty of value at recent prices of 405p. City analysts think the insurer’s annual earnings will fall 15% in 2021, but this still leaves it trading on a rock-bottom price-to-earnings (P/E) ratio below 9 times. Most importantly, its forward dividend yield, at 5.5%, beats Tesco’s by a large distance. And the dial moves to an impressive 6.3% for 2022 too. There’s been disquiet in some quarters of late over Aviva’s huge disposal programme. In its bid to create a more streamlined entity, the financial colossus has hived off all its foreign operations, bar those in Canada and Ireland. This has consequently raised concerns over how the company will generate decent profits growth in the years ahead. It’s my opinion that these huge asset sales will enable Aviva to concentrate both on those two key overseas markets and the core UK business much more effectively and efficiently. As well, recent divestments have given Aviva the financial clout to launch a £750m share buyback programme. And this balance sheet boost should help it remain a generous dividend payer for some time yet. So I think Aviva could be one of the best dividend stocks to buy on the FTSE 100 today. The post Tesco vs Aviva: which is the best FTSE 100 stock to buy? appeared first on The Motley Fool UK. Inflation Is Coming: 3 Shares To Try And Hedge Against Rising Prices Make no mistake… inflation is coming. Some people are running scared, but there’s one thing we believe we should avoid doing at all costs when inflation hits… and that’s doing nothing. Money that just sits in the bank can often lose value each and every year. But to savvy savers and investors, where to consider putting their money is the million-dollar question. That’s why we’ve put together a brand-new special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation… …because no matter what the economy is doing, a savvy investor will want their money working for them, inflation or not! Best of all, we’re giving this report away completely FREE today! Simply click here, enter your email address, and we’ll send it to you right away. More reading 2 bargain FTSE 100 dividend stocks I’d buy today 3 FTSE 100 shares to buy and hold for a decade The Tesco share price: is a buyout on the cards? 2 ‘no-brainer’ UK stocks I’d buy right now My top 3 FTSE 100 dividend stocks to buy today John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Amazon. The Motley Fool UK has recommended Tesco and has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  26. The Tesco share price is on the rise. Should I buy for September? (28/08/2021 - The Motley Fool UK)
    The Tesco (LSE: TSCO) share price has risen by around 4% in the last five days at the time I’m writing. With other major supermarket chains such as Morrisons seeing exponential rises this past month, could Tesco also follow suit moving into September?  This year has produced a lot of difficulty for Britain’s largest retailer. Moving into the second half of 2021, is it possible for Tesco to finish strongly or will its lacklustre performance only continue? Here I examine whether or not Tesco shares are a strong buy for me.  The bullish case for the Tesco share price It’s important to remember that Tesco is still the UK’s biggest retailer. So when a company of this size has an underperforming share price, there is always the possibility that I can make a decent profit from its undervaluation. Tesco has the experience and expertise to stay around for generations to come. When I’m thinking of a major long-term investment, choosing a company that has become part and parcel of the marketplace is a sign of sustainability and security in investment for me. I feel that getting the basics right for an investment is essential. It would be unwise of me to disregard Tesco’s fundamental success over the past decade. This is based on the fact that its revenue has grown from £54bn in 2016 to £57bn in 2020.  Tesco has also come out strong in its FY21 report. Group sales were up by 7.1% to £53.4bn, retail cash flow rose by 29.8%, net debt dropped by 2.8%, and the dividend per share remained unchanged at 9.15p. This was also bolstered by its more recent Q1 report with like-for-like sales growing by 9.3%. Overall, the company is continuing to perform well in uncertain conditions. So why is the share price underperforming?  Bearish factors for the Tesco share price Although Tesco is still the largest supermarket chain in the country, competition is rising. Morrisons, as mentioned before, is seemingly upping its game with the completion of its momentous takeover by Clayton, Dubilier and Rice (CD&R). The Sainsbury and Marks and Spencer shares are also performing better than Tesco. The drop in the Tesco share price could simply be a result of its competitors’ share prices rising.  Tesco is also fearful of another shortage in the supply chain heading into Christmas. However, a shortage of drivers, in part caused by Brexit, should affect the majority of supermarket chains and not just Tesco.  Should I buy for September? I’m uncertain on what the future holds for Tesco in the near future. I think it is very possible that the Tesco share price could face more problems moving into September. My reasoning is based on the shroud of mist regarding how Tesco has performed now restrictions have been lifted. On this basis I think the next financial report could be quite telling for what direction it will go in.  So, for now I will hold off buying Tesco shares, although I do believe that in the long-term the UK’s biggest retailer would be a profitable investment for me.      The post The Tesco share price is on the rise. Should I buy for September? appeared first on The Motley Fool UK. Inflation Is Coming: 3 Shares To Try And Hedge Against Rising Prices Make no mistake… inflation is coming. Some people are running scared, but there’s one thing we believe we should avoid doing at all costs when inflation hits… and that’s doing nothing. Money that just sits in the bank can often lose value each and every year. But to savvy savers and investors, where to consider putting their money is the million-dollar question. That’s why we’ve put together a brand-new special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation… …because no matter what the economy is doing, a savvy investor will want their money working for them, inflation or not! Best of all, we’re giving this report away completely FREE today! Simply click here, enter your email address, and we’ll send it to you right away. More reading Where will the Tesco share price go in September and beyond? 3 cheap UK dividend shares to buy Is this FTSE 100 stock one to buy in September? I’d listen to billionaire Bill Ackman and buy these FTSE 100 shares for my ISA Is Tesco stock too expensive? John Town owns no shares of the shares mentioned. The Motley Fool UK has recommended Morrisons and Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  27. Is the Tesco share price getting a Morrisons boost? (07/07/2021 - The Motley Fool UK)
    The takeover battle for Morrisons has pushed its shares up 49% since the first bid emerged, and they’ve gained 44% over the past 12 months. Is it the turn of Tesco (LSE: TSCO) now? In the past few days, the Tesco share price has been picking up. I really don’t think we’ll be seeing any bids for Tesco. After all, we’re looking at the biggest company in the sector, already valued at over £18bn. It would be interesting to see someone having the courage to make a move though. But I do think the Morrisons saga has shown that the supermarket sector is probably undervalued. If there is a next supermarket takeover bid, City talk suggests it could be for J Sainsbury. It has just reported a first quarter ahead of expectations. But that’s not the reason the pundits think it might make a tasty target. No, Sainsbury has a property portfolio valued at around £10bn, which is quite a bit more than its market cap of £6.3bn. A different approach to valuation That brings me back to Morrisons, and a warning from Legal & General Investment Management (LGIM) on Monday. According to The Guardian, a senior fund manager at LGIM said: “If an acquirer makes strong returns this should come from making the company a better business. It should not come from buying its property portfolio too cheaply, levering the company up with debt, and potentially reducing the tax paid to the exchequer.” So maybe the bidders aren’t seeing Morrisons as an undervalued business as much as a cheap portfolio of assets. Morrisons shareholders will get their cash anyway. But are there any lessons here for long-term private investors, specifically those with their eye on the Tesco share price? Eyes peeled for everything It’s reminded me to keep my eye on all aspects of a company’s valuation. I might be tempted to focus on P/E and dividend yield. But that gives far from the whole story, and the balance sheet and asset situations are also key. Very often, we’re looking at a hefty negative balance sheet. So for me, businesses on attractive valuations but with big debts are to be avoided. I have no fears for Tesco there. But what about its property portfolio? In its 2020/21 results, Tesco reported property, plant and equipment assets to the tune of £17.2bn. In this case, that’s just below the company’s market cap. It’s still another factor in valuing the Tesco share price, mind. A Tesco share price reappraisal? I recently examined Benjamin Graham’s famous maxim that in the short term, the stock market behaves like a voting machine, but in the long term it acts like a weighing machine. I looked at what that means for long-term value investors. These latest developments remind me that I need to take into account all of the factors that might make a company attractive, to all manner of investors. And that a stock bought at an attractive valuation is almost always worth keeping for the long term. I do think the Morrisons saga could help investors to reappraise the Tesco share price. The post Is the Tesco share price getting a Morrisons boost? appeared first on The Motley Fool UK. 5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic… And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains. But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times. Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down… You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm. That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now! More reading Should I buy Tesco shares as takeover talk heats up? 3 UK dividend shares to buy now 3 top stocks to buy in July Could the Tesco share price be a buyout target? Should I buy FTSE 100 shares Lloyds, Tesco, or Glaxo in July? Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has recommended Morrisons and Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  28. The Tesco share price looks cheap and I’d buy it in an ISA (15/03/2021 - The Motley Fool UK)
    The Tesco (LSE: TSCO) share price catches my eye right now. I think it looks good value. Not only that, but the UK’s largest grocer pays an attractive level of income too. I think this FTSE 100 income and growth stock would fit nicely inside a Stocks and Shares ISA. I’ve been sceptical about investing in the supermarkets in the past, having swept them from my portfolio six or seven years ago. However, today I find the Tesco share price highly tempting. Tesco had a good pandemic. It established itself as an essential service (as did all the supermarkets). As a result, nobody complained about its decision to carry on paying its dividend to investors throughout. I’m watching the Tesco share price This is one of the best reasons to invest in Tesco, as you currently get a forward yield of 4.4%. That looks highly attractive to me, as even the best instant access Cash ISAs pay just 0.4%. Better still, the dividend is covered 1.9 times earnings. While dividends are never guaranteed, this looks as solid as most on the FTSE 100. However, there’s no guarantee Tesco will do as well once lockdowns are over. Grocery sales could slip as people eat out more and drink in pubs and restaurants rather than at home. The hospitality sector will be the big winner post lockdown, so supermarkets may be the losers. That may partly explain why the Tesco share price is down 10% in the last month. On the plus side, sales of personal care products might rise, as people will want to look their best once we are released outdoors. Right now, the Tesco share price trades at just 11.9 times earnings. I’d buy it with a long-term view, to retirement and beyond. I’m not worried how it will fare over the next six months, or so. In fact, I see the recent dip as a buying opportunity. German threat fades Lately, Tesco has been doing well against its peers. Its market share has just increased for the first time since December 2016. The increase was just 0.2 percentage points higher to 27.4%, but that’s still impressive in such a competitive market. Aldi and Lidl are both losing share, the first time that’s happened in a decade. This could spell more good news for the Tesco share price. Tesco has also benefited from the switch to online grocery sales, where the German discounters have struggled to compete. Of course, demand for home deliveries could fall once the latest lockdown is over, but more people have got into the habit of shopping online and it could stick. Sales at Tesco Express stores have also been healthy. Tesco is in a much better position than when I swept it out of my portfolio in the disastrous days of former CEO Philip Clarke. I’d buy it today in an ISA. After seven or eight years in the doldrums, I think there’s scope for the Tesco share price to deliver some growth. I’d check out these as well. 5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic… And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains. But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times. Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down… You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm. That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now! More reading FTSE 100: this is what I’d do about the cheap Tesco share price! The Tesco share price looks dirt-cheap! Here’s what I’d do now Are these 2 of the best cheap FTSE 100 shares to buy before the ISA deadline? Here’s why the Tesco share price dropped 10% in February 3 reasons why I think the Tesco Share price could head higher in 2021 Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has recommended Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Tesco share price looks cheap and I’d buy it in an ISA appeared first on The Motley Fool UK.
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  29. Should I buy Tesco shares today? (06/09/2021 - The Motley Fool UK)
    Tesco (LSE: TSCO) shares have recently been climbing, and have delivered 10% and 16% one-month and six-month returns respectively. Tesco is the supermarket industry leader, holding 27% of the market share, and this places the firm in a solid position for growth. However, there are risks ahead for the FTSE 100 stalwart. Tesco share price interest As I referenced in a previous article, competitor Morrisons has accepted a £7bn bid from US private equity firm CD&R. The bidding war for Morrisons led to its share price soaring over 60%. This interest seems to have rubbed off on the wider supermarket industry, with Sainsbury’s and Tesco also seeing their shares jump 5% and 10% in the last month, respectively. Any takeover speculation is likely to benefit Tesco shares, even if an acquisition never comes to fruition.  Not that the share price has been on an uninterrupted upward trajectory. The Tesco share price fell sharply in February, but it wasn’t anything to worry about. In early 2021, it announced a special 50.93p dividend would be paid to investors. This was made possible by the £5bn sale of its Asian businesses. The shares fell almost 30% in the process as it performed a share consolidation. This meant 15 new shares were issued for every 19 existing ones — and investors became £5bn richer in the process.  Tesco currently boasts a healthy 3.91% dividend, significantly higher than the FTSE 100 average of 3.3%. This would make Tesco a great income addition to my portfolio, I feel, and is another reason I like the stock.  Brexit problems There are risks, however. Brexit food shortages have been exacerbated by the pandemic. This has sparked fears of increasing future food prices. In July, the British Retail Consortium (BRC) shop price index showed that average food prices had declined 0.8% year-on-year. However, BRC Chief Executive Helen Dickinson added that “rising commodity prices and Brexit red tape” were creating an unsustainable price environment for the UK supermarket sector. Moving forward, this could be a problem for Tesco shares. In addition to price problems, the HGV driver shortage is putting increased strain on the sector. Analysts have estimated a shortfall of 90,000 drivers could lead to food shortages during Christmas and into 2022. This will inflate prices further and could also damage the Tesco share price. A cheap buy? Tesco shares are currently trading at a P/E ratio of 19x, significantly above the FTSE 100 average of 15.8x. However, I expect this number to drop if Tesco is able to meet its earnings targets for the quarter. It reported a 13% increase in like-for-like sales in Q1, which should help drive up earnings.  Aside from this, the UK supermarket sector is a good defensive play, I feel. People will always need food. Although Brexit is already causing problems, I don’t believe these will be too heavily reflected in share prices. Overall, although don’t think Tesco shares will make any crazy gains in the near future, I like Tesco as a solid income option for my portfolio. The post Should I buy Tesco shares today? appeared first on The Motley Fool UK. Our 5 Top Shares for the New “Green Industrial Revolution" It was released in November 2020, and make no mistake: It’s happening. The UK Government’s 10-point plan for a new “Green Industrial Revolution.” PriceWaterhouse Coopers believes this trend will cost £400billion… …That’s just here in Britain over the next 10 years. Worldwide, the Green Industrial Revolution could be worth TRILLIONS. It’s why I’m urging all investors to read this special presentation carefully, and learn how you can uncover the 5 companies that we believe are poised to profit from this gargantuan trend ahead! Access this special "Green Industrial Revolution" presentation now More reading Is the Tesco share price now too cheap to miss? Will the Tesco share price keep climbing in September? The Tesco share price jumps! Is it too late to buy? The Tesco share price is on the rise. Should I buy for September? Where will the Tesco share price go in September and beyond? Dylan Hood has no position in any shares mentioned above. The Motley Fool UK has recommended Morrisons and Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  30. 3 reasons why I think the Tesco Share price could head higher in 2021 (02/03/2021 - The Motley Fool UK)
    Supermarkets enjoyed a strong 2020. A slick distribution and delivery set-up enabled the sector to service customers despite the lockdowns we had for much of the year. The stores were also allowed to stay open due to them selling essentials. Out of all the supermarkets, Tesco (LSE:TSCO) is the one that most impressed me. The Tesco share price hasn’t reflected this though the share price is down 23% over the past 12 months. So why do I think it could move higher this year? A falling Tesco share price, but not what it seems The move lower in the Tesco share price doesn’t actually tell the whole story. The shares were trading well for much of the past year, but dropped heavily in the middle of February following a special dividend payout. The payment equated to 50.93p per share, chunky considering the share price traded at that time around 280p. This payment was Tesco giving back to the shareholders some of the proceeds of divested operations abroad. Obviously, if the company is paying out 50.93p per share, this value is leaving the business. In a similar way to a dividend payment, the Tesco share price dropped as the adjustment to the value of the business was priced-in. Tesco consolidated its shares to limit the fall, but it still was impacted. What I’m getting at here is that the lower share price isn’t due to a struggling business. The payment is actually one reason why I think the share price could move higher this year. It’s clear that Tesco is conscious of its shareholders’ priorities and delivering returns (either via dividends or price appreciation) to them.  Other reasons why I’m keen There are other reasons why I think the Tesco share price could move higher this year. The company is still finding room to grow. As of February, it grew it’s share of the market by 0.2%, reaching 27.4%. By comparison, if you add the market shares of both J Sainsbury and WM Morrison together, you still don’t get to Tesco’s chunk of the market. The size of Tesco can be taken as either a risk or a bonus depending how you look at it. It could be seen as a risk as there’s more scope to lose business to competitors. And names like Aldi and Lidl have been chipping away at overall Big Four market share for some years. The industry is also known for being ruthless on price, with price-matching or undercutting commonplace. This erodes margins and can dent profitability. But the firm can’t opt out of that race and this leaves the Tesco share price vulnerable. Yet Tesco released its Q3 and Christmas trading results recently and called out “a market-leading performance”. UK Christmas period sales were up 8.4%. The results make for good reading, again making me think that performance could continue into this year with the momentum it has behind it. One risk to this point is the performance of Tesco Bank. Sales for Q3 and Christmas were down 27%. This arm could be a real drag on Tesco if the performance doesn’t improve. Overall though, I think the Tesco share price could outperform supermarket peers as the year continues. A Top Share with Enormous Growth Potential Savvy investors like you won’t want to miss out on this timely opportunity… Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!). Not only does this company enjoy a dominant market-leading position… But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks! And here’s the really exciting part… While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes. That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021. Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge! More reading Should I buy Tesco shares for my portfolio today? UK share investing: should I buy these 3 FTSE 100 stocks in my ISA? Is the falling Tesco share price a buying opportunity? Tesco’s share price has fallen. Should I buy the stock now? Tesco special dividend: what is it and should I buy the shares now? jonathansmith1 has no position in any of the shares mentioned. The Motley Fool UK has recommended Morrisons and Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 3 reasons why I think the Tesco Share price could head higher in 2021 appeared first on The Motley Fool UK.
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  31. Why I’d buy the Tesco share now (18/06/2021 - The Motley Fool UK)
    When I wrote about supermarket stock Tesco (LSE: TSCO) last month, I was hesitant to buy the share just yet. My conclusion was that even though its share price could rise, it would be a good idea to wait for another update before deciding. Today Tesco released that update.  Sales growth slows down The FTSE 100 company reported a 1% increase in like-for-like (LFL) sales for the 13 weeks ending 29 May. LFL sales measure the change in sales across the same stores over time. The advantage of this measure is that it removes any bump up in sales if a new store is opened or a decline in sales if one is closed.  This measure showed a sharp decline from the 7.9% increase seen for the full-year 2020-21. To be fair, some of the decline was to be expected. In its outlook at the time of its full-year results, Tesco had expected additional gains in UK sales to fall as restrictions eased. The UK market accounts for the bulk of the supermarket’s retail revenues.  Still, the extent of the decline is glaring according to me. This probably explains why the Tesco share price is down by 3% as I write.  Positives in the update I do think, however, that there are some positives in Tesco’s latest trading update as well. It also gives us a comparison against LFL sales two years ago, which is helpful because it was a more typical year than 2020. This shows a more encouraging growth of 8.1%, with the UK’s growth at 9.3%. I also like its strong online sales growth for the UK. Compared to 2020, online sales grew 22.2%, and a huge 81.6% compared to 2019. Online orders surged across grocery retailers last year. While it was clearly pandemic-driven, it is also believed that some of the shift to online sales is permanent. How much of it will continue post-lockdowns was a wait and watch. Now we have some proof that this is actually the case. I see this in my own choices as a consumer. It is far easier, quicker, and even more cost effective to order groceries online now and I have no desire to change that. I reckon that in-store sales can also pick up greater pace over the rest of the year. A healthier economy over the rest of 2021 can result in increased consumer demand across products and services.  Decent dividend yield The Tesco share is also somewhat attractive from a dividend standpoint. It has a yield of 4.3%, which is not the highest, but it is still decent in my view.  My takeaway for the Tesco share price The big challenge with the share is that its price has gone nowhere in years. I see the value of the stock, but also that it is neither the best growth stock nor the best income stock around. On balance, though, I think if it sustains its performance it could reap rewards for investors over time. I would buy the Tesco share now, but with awareness that it might not pay off. The post Why I’d buy the Tesco share now appeared first on The Motley Fool UK. Our 5 Top Shares for the New “Green Industrial Revolution" It was released in November 2020, and make no mistake: It’s happening. The UK Government’s 10-point plan for a new “Green Industrial Revolution.” PriceWaterhouse Coopers believes this trend will cost £400billion… …That’s just here in Britain over the next 10 years. Worldwide, the Green Industrial Revolution could be worth TRILLIONS. It’s why I’m urging all investors to read this special presentation carefully, and learn how you can uncover the 5 companies that we believe are poised to profit from this gargantuan trend ahead! Access this special "Green Industrial Revolution" presentation now More reading The Tesco share price is down but I’d still buy Why I think the Tesco share price is deeply undervalued Can the Tesco share price climb higher? Should I buy shares in Deliveroo or Tesco? Should I buy Tesco shares or Sainsbury? Manika Premsingh has no position in the shares mentioned. The Motley Fool UK has recommended Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  32. Has anyone held stock when the company had a buyout? I can’t seem to find historical data (01/05/2021 - Reddit Stocks)
    I’m curious if anyone’s had stock during a buyout. And curious how much the stock was valued at and how much it sold for during buyout? All major buyouts I’ve found were on non public companies so I can’t seem to find any that were a public company buying up another public one so figured I’d ask anyone who’s had first hand experience. Thanks!   submitted by   /u/Solz22 [link]   [comments]
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  33. Should I buy Tesco shares as takeover talk heats up? (07/07/2021 - The Motley Fool UK)
    Takeover action over at Morrisons has boosted investor appetite for some of the FTSE 100’s other grocery giants too. The Tesco (LSE: TSCO) share price, for example, has just hit three-month highs above 236p per share on talk it could also become a target. It’s possible that Britain’s biggest retailer could continue to soar as the bidding war intensifies too. Despite these recent gains though, the Tesco share price still looks mighty cheap on paper. City analysts think the UK retail share will enjoy a 145% rise in annual earnings during the 12 months to February 2022. A subsequent forward price-to-earnings growth (PEG) ratio of 0.1 sits well inside the widely-regarded bargain benchmark of 1. At current prices, Tesco also carries a gigantic dividend yield a shade below 4.5%. This smashes the broader forward average for UK shares by a full percentage point. So, is now the time to buy this FTSE 100 firm for my own shares portfolio? Looking on the bright side It’s certainly possible the Tesco share price could continue rising strongly. Factors driving it could include: #1: Investment in e-commerce keeps going. 2020’s public health emergency prompted all the UK’s major supermarkets to significantly improve their online propositions. Tesco solidified its position at the top of the tree last year by taking on 16,000 new workers to turbocharge its online capacity. And the company plans to keep spending to capitalise fully on the huge growth that online grocery looks set to experience. Its plans include opening 25 new fulfilment centres over the next three years. #2: A Tesco takeover emerges. As I said, speculation that Tesco could also become a takeover target has helped lift the firm’s share price. Now it’s true that the company’s market-cap is almost three times that of Morrisons, at £17.9bn. But that doesn’t rule out the possibility of a buyer swooping in. Amazon, for example, has more than enough financial clout to buy up Britain’s biggest supermarket. What’s more, the company has a track record of making big statements as it aggressively builds its position in the grocery industry. Don’t forget Amazon’s takeover of Whole Foods several years back. Dangers to Tesco’s share price All that said, I’ve some reservations about buying Tesco shares today. These centre around the worsening competitive pressures it faces as Amazon — along with budget outlets such as Aldi and Lidl, and premium chains such as Waitrose — all vie for the retailer’s customers. At one time, £1 out of every £6 found its way into Tesco’s tills. But the ambitious store expansion programmes of its rivals has shaved a big lump off the FTSE 100 firm’s market share. Not only are these schemes set to continue, but it seems like the fight online is about to get a hell of a lot bloodier too. The dangers to Tesco’s crumbling customer base look set to keep growing, as does the pressure on its wafer-thin margins as discounting across the industry ramps up. The post Should I buy Tesco shares as takeover talk heats up? appeared first on The Motley Fool UK. Whilst takeover talk could rumble on, I’d much rather buy less-risky stocks for my investment portfolio today. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading 3 UK dividend shares to buy now 3 top stocks to buy in July Could the Tesco share price be a buyout target? Should I buy FTSE 100 shares Lloyds, Tesco, or Glaxo in July? Top British stocks for July John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Amazon. The Motley Fool UK has recommended Morrisons and Tesco and has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  34. The Tesco share price: is now the time to buy this FTSE 100 stock? (03/04/2021 - The Motley Fool UK)
    I have long believed that the Tesco (LSE: TSCO) share price is one of the most attractive investments in the FTSE 100. Unfortunately, it doesn’t seem as if other market participants hold the same view. Over the past year, the stock has produced a negative total return of -1.6%. That’s compared to a positive return of 21.5% for the FTSE 100 over the same time frame. However, I think this could be a great opportunity. After this performance, the Tesco share price now looks cheap compared to the rest of the market. That’s something I want to try and take advantage of by adding the stock to my portfolio. Tesco share price opportunity City analysts believe the company will earn 13p per share for its current financial year. Based on these projections, and they are just projections at this stage, the corporation is trading at a forward price-to-earnings (P/E) multiple of 17.6.  That looks expensive compared to the rest of the market. The rest of the market is selling at a median P/E of 15.9.  But I believe the company’s earnings figure is misleading. Tesco’s current financial year encompasses most of the coronavirus crisis. While the organisation has booked significant sales growth during this period, it has also had to spend more on disinfecting its stores, masks for employees, and other initiatives unique to this crisis.  When the pandemic finally comes to an end, these costs should disappear, leading to improved profitability for the group. Indeed, analysts are already forecasting a net profit of £1.5bn for the company’s 2022 fiscal year, up from £942m for 2021 and £971m for 2020. Once again, these are just projections.  Based on these figures for 2022, the Tesco share price is currently selling at a P/E of 11. That looks cheap to the broader market. The stock could also offer a dividend yield of 3.7% this year. That’s slightly above the FTSE 100 average.  Based on these figures, I think the Tesco share price looks cheap compared to its potential.  FTSE 100 investment  The company will only meet these figures if the pandemic fades away in the second half of this year. If it doesn’t, Tesco won’t meet these figures. That’s the most significant risk to my thesis right now. Another challenge the organisation may face is higher labour costs. These can impact the group’s profit margins and limit its ability to hit City growth expectations. With margins under pressure, the company may also be forced to reduce cash distributions to investors.  Despite these risks, I would buy Tesco for my portfolio today. I think the size of the company gives it a defensive nature, and its sales growth over the past few months is incredibly impressive. While there will always be a chance the company won’t meet earnings expectations, due to the nature of the group’s business model, I think it’s unlikely (although not impossible), the Tesco share price will inflict significant losses on my portfolio. As such, I think the risk reward profile of the investment is attractive.  There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading My plan to earn passive income for a pound a day The Tesco share price looks great value to me Why hasn’t the Tesco share price risen more? 2 side hustle ideas I would consider using – without the hustle Why I think Tesco’s share price is set to rise Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Tesco share price: is now the time to buy this FTSE 100 stock? appeared first on The Motley Fool UK.
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  35. Shall I buy J Sainsbury, or is the Tesco share price more attractive? (28/04/2021 - The Motley Fool UK)
    When I last looked at Tesco (LSE: TSCO), I had Lidl and Aldi in mind as its key competitors. That comparison reinforced my thoughts that Tesco share price looks appealing. I now have J Sainsbury (LSE: SBRY) in mind, on the day that the more traditional competitor released full-year results.  Sainsbury’s recorded a modest 0.2% increase in revenue. That included fuel sales, though. Excluding fuel, retail sales increased 7.3%. Digital sales jumped 102%, as so many more shoppers made their purchases from behind their computer screens. That’s around 37% of total group sales, and it will be interesting to see what effect the end of lockdown will have on the 2021-22 year. I reckon a lot of new online shoppers will stick with it now they’ve had a go and enjoyed its convenience. And that could help support both the Sainsbury’s and Tesco share prices. The overall 7.3% rise in sales was in line with Tesco’s, reported early in April. Tesco saw group sales (excluding fuel) gain 7%. There is, however, an interesting difference in online sales. While Sainsbury’s figure more than doubled, at Tesco the increase was weaker at 77%. And the contrast widens when we see digital accounted for only around 12% of Tesco’s total sales.  Early market reactions As I write, the market has reacted by knocking Sainsbury shares down a couple of percent, while the Tesco share price has barely moved. So where’s the bad news for Sainsbury’s? When it comes to profit, the two supermarket chains performed somewhat differently. On statutory figures, Sainsbury’s reported a £261m pre-tax loss, with a statutory loss per share of 13p. The company did say the loss “predominantly reflects one-off costs and impairments associated with strategic changes announced in November.” In underlying terms, it saw a £356m pre-tax profit. That’s better, but it’s still a drop of 39% from the previous year. Underlying EPS fell 41%. And what about profit at Tesco? The UK’s biggest supermarket giant saw pre-tax profit fall a less painful 20%, and that’s on a statutory basis too. Diluted EPs at Tesco was unchanged. There’s a full-year Sainsbury dividend of 10.6p per share, for a 4.4% yield on the current share price. Over at its big competitor, a 9.15p dividend yields a similar 4.1%, on today’s Tesco share price. Is the J Sainsbury or Tesco share price the most attractive? Sainsbury’s seems to be progressing well with debt reduction and cash flow. But its restructuring and refocusing in response to years of intensifying competition in the sector does seem to be lagging behind Tesco. I think both of these supermarkets deserve serious consideration as long-term investments, but they’re not without risk. Online shopping is the real differentiator that keeps both Tesco and Sainsbury’s on my potential buy list. But where will that go? With lockdown easing, I’ve been back to Aldi a few times myself. How many will stick with online shopping, and how many will seek the cut-price bargains from our German cousins? That’s the big question that should resolve itself over the next few years. In the meantime, today’s Tesco share price indicates a P/E of 18, with Sainsbury’s on 20 (on an adjusted/underlying basis respectively). Its greater market reach and speedier response to market changes gives Tesco the nod over Sainsbury’s for me. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading The Sainsbury’s share price falls after a huge loss. But I see value in SBRY I’d invest £5k in Tesco shares for my Stocks and Shares ISA Why I think the Tesco share price is cheap at 225p Is the Tesco share price a FTSE 100 opportunity or one to avoid? Should I buy Tesco shares at the current price? Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has recommended Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Shall I buy J Sainsbury, or is the Tesco share price more attractive? appeared first on The Motley Fool UK.
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  36. 3 reasons why I think the Tesco share price can rise (19/05/2021 - The Motley Fool UK)
    Tesco (LSE: TSCO) had a good year last year, partly due to the pandemic which increased food consumption at home. The Tesco share price too responded to these positive developments, albeit in fits and starts.  Weak share price trend But 2021 has not been quite as positive for the Tesco share price. It saw one big fall in February, when it decided to consolidate shares. That says nothing about the company or investor perception of it. Nevertheless, in the months following, its share price trend has been underwhelming. In the two-and-a-half months since February, the Tesco share price has increased only by some 4%. There has admittedly been much fluctuation, but the broad trend is flat.  By comparison, from the time that the stock market rally started in November last year up to early February this year, the Tesco share price gained over 21%.  Why the Tesco share price lost momentum So why has the Tesco share price lost momentum? I see one very good reason for this. Its recent results were a mixed bag. While revenues showed healthy growth, Tesco is not confident that these growth rates will be sustained. Also, its profits are growing more slowly.  This is underwhelming to me as an investor, especially at a time when many businesses that lost out last year because of the pandemic are picking up pace.  Why the Tesco share price can rise now But I think there are at least three reasons why the Tesco share price can rise from here.  One, economic growth is expected to pick up significantly over the rest of the year. I think this will show up in more consumer spending on all kinds of goods and services. And that includes shopping from supermarkets like Tesco. Moreover, if this is going to be a long-term boom fuelled by government spending and relaxed interest rates, it would continue to benefit.  Two, Tesco’s performance is better in comparison to peers. For instance, the supermarket Morrisons, has shown a far bigger operating profit fall of 51% for the last financial year compared to the year before. In comparison, Tesco’s operating profit has fallen by 21.5%. Further, Sainsbury’s actually clocked a loss during the year.  Three, increased Covid-19 costs have played a big part in driving profits down. As these come off in this year and the next, not just Tesco but all supermarkets can show healthier profits.  My takeaway Of course, as an investor I can turn around and ask why I need to buy shares of supermarkets at all. To that, the answer is that a grocer like Tesco now looks cheaper than many other FTSE 100 stocks with a price-to-earnings (P/E) ratio of 24 times. If its performance does remain relatively strong, I reckon investor interest will return to it.  But I am waiting for the next update to see what happens before I make my decision.  A Top Share with Enormous Growth Potential Savvy investors like you won’t want to miss out on this timely opportunity… Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!). Not only does this company enjoy a dominant market-leading position… But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks! And here’s the really exciting part… While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes. That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021. Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge! More reading I’d invest £1k in Tesco shares Will Morrisons beat the Tesco share price in 2021? Is the current Tesco share price a buying opportunity? Should I buy Tesco shares or Amazon shares? Best UK stocks to buy in an ISA Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK has recommended Morrisons and Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 3 reasons why I think the Tesco share price can rise appeared first on The Motley Fool UK.
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  37. Why I think the Tesco share price is deeply undervalued (17/06/2021 - The Motley Fool UK)
    I think the Tesco (LSE: TSCO) share price is one of the most undervalued in the FTSE 100. Today, I’m going to explain why I hold this opinion.  Deeply undervalued Tesco isn’t the most exciting business on the market. However, the company does provide an essential service to consumers around the UK through its supermarkets, wholesale business, and local stores. Further, customers are incentivised to shop in Tesco stores through its Clubcard scheme. In recent years, the company has been boosting its Clubcard offer by combining financial services, mobile phones, and, of course, food shopping. The corporation increasingly provides discounts in store for these card holders as a way of offsetting cheap prices offered by rivals.  By encouraging consumers to sign up for the Clubcard scheme, Tesco has also built a vast trove of its customers’ data. This information has given the group an edge over competitors. By using the data, it can provide tailored discounts to customers and streamline its inventory process.  Put simply, Tesco has a substantial competitive advantage both in the size of the operation and the data available to the group, which it can use to make better decisions.  But despite these advantages, the stock is only trading at a modest premium to its sector. The Tesco share price is selling at a price-to-earnings (P/E) ratio of 12.7, compared to 12 for Sainsbury’s and 12.4 for Morrisons. I think the firm deserves to trade at a significant premium to the sector, considering its advantages.  What’s more, at the time of writing, the stock offers a dividend yield of around 4%. That’s above the market average and looks highly attractive in the current interest rate environment.  The final reason why I think the Tesco share price is undervalued is its cash generation. The firm is aiming to produce a free cash flow of £1.2bn every year. This implies the stock is trading at a free cash flow yield of 6.8%. By comparison, fellow FTSE 100 giant Unilever is trading at a free cash flow yield of 5%. To put it another way, Tesco is around 36% cheaper on a cash flow basis.   Tesco share price risks While I believe the stock is undervalued, I can see why some investors might give the business a wide berth. Key risks to its growth include rising costs, which could eat away at profit margins. The retail sector is also incredibly competitive. Tesco has the advantage today, but it may not last long. These risks could hold back growth and damage those all-important profit margins, which may hurt the company’s dividend prospects.  Still, despite these risks and challenges, I think the Tesco share price is deeply undervalued. As such, I’d buy the retail champion for my portfolio today as a value and income investment.  The post Why I think the Tesco share price is deeply undervalued appeared first on The Motley Fool UK. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading Can the Tesco share price climb higher? Should I buy shares in Deliveroo or Tesco? Should I buy Tesco shares or Sainsbury? 3 dividend stocks to buy Where will the Tesco share price go in June? Rupert Hargreaves owns shares in Unilever. The Motley Fool UK has recommended Morrisons, Tesco, and Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  38. The Tesco share price fell on earnings. Is it time to buy? (21/06/2021 - The Motley Fool UK)
    The Tesco (LSE:TSCO) share price took a bit of a tumble last Friday, falling by 4% after it published its first-quarter results. This brought the stock’s 12-month performance to around -2% (taking its share consolidation into account), so it remains almost flat. But were these results as bad as the market suggests? Let’s take a look at the numbers, and see whether this is actually a buying opportunity. The Tesco share price versus earnings At first glance, Tesco’s latest earnings report looks quite underwhelming. After all, revenues for the period grew by a measly 1% (excluding fuel sales). But looking at the individual revenue streams, there are some encouraging signs of improvement. Firstly, its Booker division saw a 68.1% increase in like-for-like catering sales that increased its overall revenue by 9.2%. This growth is clearly benefiting from the return of the hospitality sector as lockdown restrictions have enabled pubs and restaurants to reopen. Meanwhile, sales from its supermarkets have also performed relatively well. Comparing to a year ago, growth remains paltry at 1.3%. However, going back two years, to get a pre-pandemic comparison, overall sales were up 8.7%. To me, this suggests that after more than a year of being obliged to cook at home, the habit might have stuck with plenty of households. Furthermore, online grocery sales were also up by 81.6% compared to pre-pandemic levels and 22.2% compared to a year ago. Lastly, fuel sales for the UK were also up by 68.1% since last year mainly due to the increased number of cars on the road. However, it is worth noting that this remains below pre-pandemic levels. Overall, these figures are quite impressive, in my opinion, especially for a food retailer. So why did the Tesco share price fall? The rising uncertainty Despite the solid progress made, there appear to be growing concerns surrounding inflation. In other words, the price of food and everyday products is rising. And that’s quite a big problem for food retailers like Tesco. Why? Because despite having a solid brand, the industry is flooded with competitors that eliminate nearly all pricing power. This is the reason Tesco has begun price-matching its products with companies like Aldi. Given the ability to raise prices is relatively low, margins will undoubtedly be affected if the fears of inflation come to pass. Another concern seems to be surrounding the longevity of online sales growth. While they were up by double-digits last quarter, these figures have started to show some weakness. Tesco has stated that online sales growth has begun to slow during the April/May period as lockdown restrictions continued to be eased. Needless to say, if this growth begins to reverse, Tesco’s share price would likely suffer, at least in the short term. The bottom line I find these latest figures quite encouraging. They are certainly not ground-breaking. But, seeing high double-digit growth across its divisions continues to make me believe that the Tesco share price can return to its pre-pandemic levels. Therefore, in my eyes, this latest dip looks like an opportunity to snatch up some shares (and a 4% dividend yield) at a lower price. The post The Tesco share price fell on earnings. Is it time to buy? appeared first on The Motley Fool UK. But it’s not the only stock I have my eye on this week… One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading Should I buy Tesco shares before October? The Tesco share price has fallen this week. Here’s why I’d buy Why I’d buy the Tesco share now The Tesco share price is down but I’d still buy Why I think the Tesco share price is deeply undervalued Zaven Boyrazian does not own shares in Tesco. The Motley Fool UK has recommended Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  39. HDFC Bank aims to regain cards market share in 3-4 months (24/08/2021 - Financial Express)
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  40. Is the Tesco share price too cheap at current levels? (18/04/2021 - The Motley Fool UK)
    Taking a quick look at Tesco‘s (LSE: TSCO) share price lately, it looks pretty cheap to me. Its stock performance took a nosedive in mid-February. Now, it is trading at 226p, down 25% from 299p a year ago.  As a value investor, this performance has attracted my attention. I’m always looking for cheap shares that can diversify my portfolio, and it seems as if Tesco might qualify. However, Tesco’s stock price doesn’t tell me much about its underlying performance. Just because it is trading lower today than 12 months ago, doesn’t mean the stock is worth buying. So I need to dig deeper. Looking at Tesco’s financials The first step I take in understanding if Tesco is undervalued is checking its financials. Tesco recently released its preliminary results for 2020. Headline sales excluding fuel were up 7.1% to £53.4bn, driven by an 8.8% rise in its core UK and Ireland stores. However, Tesco Bank revenue fell by £400m, or 31.2%, during the pandemic. Adjusted operating profit also dropped to £1.8bn from £2.5bn in 2019-20, down 28.1%. This was largely due to £900m of extra costs relating to Covid-19.  However, it was not all doom and gloom. Covid-19 has been dreadfully difficult for almost every industry, grocery included. Tesco has implemented massive infrastructural and behavioural changes to combat the pandemic. But the supermarket reckons only a quarter of these extra costs should continue into 2021-22. If this is the case, then Tesco has predicted that its bottom line could see a boost of £675m from lower expenses. To me, 2020 was a Covid-induced blip. Tesco’s share price potential Despite the rise of discount competition, Tesco is still dominant in the UK grocery market with 27% market share. Although it operates in a mature market, meaning that growth will be slower, I’m not worried. Its market dominance and 9.15p per share dividend payment make it an optimal retirement stock for me. And it does still have growth opportunities. Tesco is focusing on growth by opening new Express format stores. These are smaller shops that typically have less choice than their larger counterparts. I think this enables Tesco to boost its brand and distribution network at lower cost. As well, Tesco has entered the growing plant-based meat industry, a sector that analysts expect to be worth $17bn globally by 2024. Continued innovation and market opportunities such as this will only help to see Tesco’s share price grow.  Risks to Tesco’s share price As a British grocery chain at the top, it can be very easy to fall. Stiff competition from the likes of Sainsbury’s and Morrisons pose a significant threat. The German players are also making strides in the British market, with Lidl and Aldi both gaining market share in 2020.  And Covid-19 is still a problem. Tesco’s profits could suffer if more infectious variants of Covid-19 emerge, as we’ve seen in Brazil, and postpone the global reopening. Conversely, Tesco’s sales may take a short-term hit if pubs, bars, and restaurants boom after reopening. So, is it too cheap? I believe that Tesco represents a great discount buying opportunity right now. This is a dividend-paying market leader that has managed a global pandemic pretty well from my perspective. Any dip in its price is short-term in my opinion, so I’d be happy to buy it at these prices. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading The Tesco share price looks cheap to me: here’s why I’d buy The Tesco share price is falling: should I buy now? The Tesco share price fell 2% today. But I see it as a winner in 2021/22! Why is the Tesco share price falling? The Tesco share price is falling. Here’s why I’d buy Jamie Adams has no position in Tesco. The Motley Fool UK has recommended Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Is the Tesco share price too cheap at current levels? appeared first on The Motley Fool UK.
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  41. The Tesco share price: here’s what I’m doing now (16/02/2021 - The Motley Fool UK)
    The Tesco (LSE: TSCO) share price declined slightly last week after its investors approved a special dividend from the business. The stock has since recovered from its modest decline of around 1%. The company has also completed a consolidation of its shares. This had to take place as, without it, the stock would have dropped significantly following the dividend payout. The 50.93p per share dividend is equal to around 21% of Tesco’s market capitalisation. On that basis, without the consolidation, the Tesco share price may have fallen by a similar amount.  The 15-for-19 consolidation of Tesco’s shares was designed so that, as far as possible, the company can maintain its current share price. The cash return marks the end of an era for the retailer. Tesco completed the $10.6bn sale of its businesses in Thailand and Malaysia to the CP Group in December. As well as returning $6.9bn or £5bn to investors, the company also used £2.5bn of the disposal proceeds to bolster its pension fund.  Outlook for the Tesco share price  After these transactions, the retailer is now a leaner, more focused enterprise with a stronger balance sheet. I think this bodes well for the Tesco share price in future because the business can focus on doing what it does best. That is, serving customers well while earning profits for investors.  That said, due to the nature of the grocery business, I think it’s improbable this company will become the market’s next growth champion. Grocery retailing is a slow and steady industry, and the market tends to grow in line with inflation over the long term.  Still, what it lacks in growth, it more than makes up for in defensiveness. Consumers will always need to eat and drink, and there’s usually a Tesco nearby that can meet these demands.  Risks ahead Unfortunately, even though it is the largest supermarket retailer in the country, Tesco does face plenty of challenges. The UK grocery market is highly competitive. So there’s no guarantee the business will continue to grow. Competitors may eat the company’s lunch.  This isn’t the only risk the group faces. The business is highly dependent on its employees. It’s one of the largest employers in the country. Therefore, an increase in the company’s wage bill could significantly impact the bottom line. There has also been speculation of a potential excess profits tax, levied on companies that have prospered in the pandemic. Tesco could be in the firing line. A large one-off tax on the group would certainly have a negative impact on the Tesco share price, in my opinion.  Overall, I think the retailer could be a great addition to my portfolio as a slow and steady defensive investment. When owned alongside a portfolio of other growth and income shares, I think the benefits of owning the stock could more than offset the risks associated with it. However, that is just based on my own personal level of risk tolerance. It may not be suitable for all investors.  One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading 2 cheap FTSE 100 shares I’ll buy to boost my portfolio Passive income stocks: should I buy Tesco shares right now? The Tesco share price is rising! Should I buy the stock now? 2 FTSE 100 shares I think Warren Buffett would buy FTSE 100 watch: why I’m not bowled over by the cheap Tesco share price! Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Tesco share price: here’s what I’m doing now appeared first on The Motley Fool UK.
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  42. Your Money: Credit cards, BNPL or EMI cards — What’s best for you? (20/07/2021 - Financial Express)
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  43. Why is the Tesco share price falling? (14/04/2021 - The Motley Fool UK)
    FTSE 100 supermarket giant Tesco (LSE: TSCO) reported strong sales numbers this morning, but investors are not impressed. The Tesco share price is down over 2% as I write.  I think there are at least two possible explanations for this in the earnings update itself.  #1. Can it sustain high sales growth? One of the opening statements in the Tesco earnings’ release is “sales exceptionally strong, growing UK market share in the year and gaining customers from all key competitors”. Its sales increased 7.1% for the full year ending February 27. The UK and Ireland, which contribute over 90% of its total revenues, grew by 8.8%. Even more impressive than the overall sales growth was the online sales increase of 77%. This is a confidence-booster for a potential investor like me.  However, the company attributed some of these additional sales volumes to Covid-19 restrictions. These are likely to “fall off”. In other words, we can expect Tesco’s sales growth to slow down in the coming months. This may have encouraged investors to steer clear of the stock so far. #2. Profits slow down, dividends are static While sales are expected to slow down, Tesco’s profits and free cash flow had already declined last year. Its operating profits were down by 28% and cash flow fell by 30%. It expects both to recover over time however, as Covid-19 related additional costs become a thing of the past.  With shrinking profits, it is hardly surprising the supermarket has kept dividends unchanged at 9.15p. It still has a dividend yield of 5.3% though, which is higher than most other FTSE 100 stocks today. Nevertheless, this could have disappointed investors. Other FTSE 100 companies, like banks, have resumed dividends in anticipation of a better year recently. And Tesco does expect a better year ahead. Competitive market for Tesco Tesco also operates in a challenging market. It has many competitors and bricks-and-mortar retailers are increasingly struggling to stay relevant in a world where sales are increasingly moving online.  I like that Tesco geared itself up for online sales. As a regular user of its app for my grocery deliveries, I have first-hand experience of both the choice and convenience it brings. But online sales for the UK are still relatively small at 16% of the country’s total sales.  The bright side for the Tesco share price Still, I think the online business can continue to grow, helping Tesco transition into the future. With a better bottom line going forward, it could be in a better place to increase dividends in the future as well. It already has a high yield, and if the Tesco share price stays at around the current levels, higher dividends can place it among the best dividend-payers across FTSE 100 stocks. The verdict But these are possibilities for the future, which may or may not play out. Moreover, the Tesco share price has underwhelmed in recent years. I would like to see how the post-Covid-19 scenario develops before buying the stock.  FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading The Tesco share price is falling. Here’s why I’d buy Should I buy or avoid Tesco shares? As the Tesco share price stays cheap, I’d invest £5k Could the Tesco share price perform like Amazon? This is what I’d do about Tesco shares right now Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK has recommended Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Why is the Tesco share price falling? appeared first on The Motley Fool UK.
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  44. The Tesco share price has fallen this week. Here’s why I’d buy (20/06/2021 - The Motley Fool UK)
    The Tesco (LSE: TSCO) share price hasn’t moved much over the past few months, though it had been picking up since the beginning of June. But the past week has been a down week, as a result of Friday’s Q1 results. The Tesco share price ended the week a few percent down, but what was so bad? Well, the figures for the first quarter look pretty positive to me. The company bills it as a strong performance, and I can’t disagree. Figures were mixed across geographic segments, but with like-for-like retail sales up 1% overall. That might not be too exciting, but it’s in comparison to a very unusual year last year. Looking back over two years, we see like-for-like growth of 8.1%. And I think that’s quite remarkable. Some of the Tesco share price weakness will presumably be down to the lifting of Covid restrictions. Tesco benefited nicely from boosted online sales throughout 2020, and shoppers are increasingly able to go and select their own stuff now. I don’t really get it myself. Why would I want to deal with the crowds, push trolleys around, and hump heavy bags of shopping home when I can have it all brought to my doorstep? On that score, I think the next 12 months should be telling. Right now, we just don’t how many shoppers will stick with the newly-discovered ease of online shopping. Many tried it in 2020 for the first time, but will they go back to the old way now they can? I’d be making a mistake judging it on my own preferences. Retail sales weakness We had the news this week that retail sales fell back in May. Unsurprisingly, online sales took a bigger hit, falling as a proportion of total sales for the third month in a row. And that will have shaken the Tesco share price. Still, according to the Office for National Statistics, online sales are still up almost 60% from pre-pandemic levels. Inflation has picked up a little bit too. After such a long period of stagnation, that’s not really surprising. But it can squeeze margins, at least in the short term. And while we don’t know how high inflation will reach, or for how long it might continue, it adds another extra bit of uncertainty to the picture. Tesco share price valuation For now, at least, Tesco is keeping its guidance unchanged. And even if we should see any market weakness in the coming months, I do think the Tesco share price still represents an attractive buy. There are two key reasons behind that thought. One is dividends. Forecasts suggest a dividend increase this year after two flat years. It would lift the yield as high as 4.7%. And I think that’s very attractive for the supermarket sector. My second reason is simply that it’s an essential sector we just can’t do without. And I reckon the best way into a sector is usually to buy the best company in it. For me, that’s easily Tesco. And I’d buy, even in the face of a possibly volatile year ahead. The post The Tesco share price has fallen this week. Here’s why I’d buy appeared first on The Motley Fool UK. 5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic… And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains. But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times. Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down… You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm. That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now! More reading Why I’d buy the Tesco share now The Tesco share price is down but I’d still buy Why I think the Tesco share price is deeply undervalued Can the Tesco share price climb higher? Should I buy shares in Deliveroo or Tesco? Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has recommended Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  45. Could the Tesco share price perform like Amazon? (09/04/2021 - The Motley Fool UK)
    US-based retail behemoth Amazon has been an incredible performer. Its shares more than quadrupled in the past five years alone. Over that time, shares in Tesco (LSE: TSCO) are up just 3%. Yet Tesco is also an accomplished online retailer. Could the Tesco share price show growth like Amazon’s in years to come? Here I look at some of Tesco’s digital opportunities and what it could mean for the Tesco share price. Neglected digital giant When talking about online retail giants, people rarely mention Tesco. Why not? The company’s online operation has been growing at speed. Last year it more than doubled online capacity to 1.5m slots a week. Sales growth online was a staggering 69%. Online grocery sales were 9% of UK sales at the start of last year, but rose to 16%. So, Tesco’s online business is a fast-growing operation that already contributes close to one-sixth of grocery revenue in its key market. Amazon growing offline Amazon has been moving from an online focus to a mixed approach. It is still predominantly an online operation, but it opened a high street shop last month in Ealing. That echoes its growing footprint of physical stores in the US. A key argument for the attractiveness of Amazon’s business model has long been its pure online focus, which helps keep costs down. Clearly Amazon’s online focus is greater than Tesco’s. Nonetheless, both have sizeable online retail operations and Amazon’s move into physical retail suggests to me that Tesco’s model may be more durable than some critics previously thought. That could help support the Tesco share price. Customer data Another reason Amazon is highly rated by investors is its use of customer data. By understanding what customers want and need in great detail, it can deepen its relationship with them and build its sales. But the same is true for Tesco in my opinion. Its iconic Clubcard loyalty scheme has been running for over a quarter of a century. It collects reams of data about individual shoppers, which can be used for targeted offers as well as understanding its customer base more broadly. While many investors rave about Amazon’s Prime membership and its business impact, Tesco has its own Clubcard Plus programme. Like Prime, it uses a membership fee to generate revenue and drive customer loyalty. Tesco share price risks Despite all this, Tesco continues to face a lot of challenges. The rise of discounters in its home UK market, such as Aldi, Lidl, and B&M, has increased pricing pressure. Additionally, the cost of packing and delivering online orders can make them less profitable than in-store purchases. Digital sales could mean existing customers become less profitable by shopping online. Where next for the Tesco share price The past five years may feel like lost time for the Tesco share price. But actually the business has transformed during that time. It recovered from an accounting scandal and sharpened its offer. I don’t expect the market will price Tesco and Amazon shares on the same basis. Amazon has expanded into businesses like web hosting which form part of its valuation. I don’t foresee Tesco doing that. But Tesco does have a bigger digital footprint than the City seems to give it credit for. In years to come, I see that as positive for the Tesco share price. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading This is what I’d do about Tesco shares right now Will the Tesco (LSE:TSCO) share price recover in 2021? Could Tesco shares be an ISA bargain? The Tesco share price: is now the time to buy this FTSE 100 stock? My plan to earn passive income for a pound a day John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. christopherruane has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Amazon. The Motley Fool UK has recommended B&M European Value and Tesco and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Could the Tesco share price perform like Amazon? appeared first on The Motley Fool UK.
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  46. The Tesco share price is cheap, but I prefer this FTSE 250 stock instead (20/05/2021 - The Motley Fool UK)
    I like Tesco (LSE:TSCO) shares and still believe it’s currently a good opportunity. But I believe a FTSE 250-listed investment trust is a better option right now.  Tesco share price reservations Like many FTSE firms, the Tesco share price has not returned to pre-crash levels as I write. It’s trading ar 224p per share. Pre-crash it was 320p and this time last year it was 227p. So what’s happened? In February, Tesco announced a special dividend and a share consolidation. It returned £5bn to investors but also completed a 15-for-19 share consolidation. This means shareholders of 100 existing shares, would now own 78 new ones. The aim was to balance out the effect of the special dividend so the share price remained the same without causing too much consternation. Tesco confirmed its full-year results two days ago, a month after preliminary results were announced. Although group sales were up 7.1% on the  year, profits and cash generation were down 28.1% and 29.8% respectively. Net debt stood at £12bn. These results negatively affected the Tesco share price. It’s currently down over 2% this week. I have reservations about Tesco. Cut-price competitors such as Aldi and Lidl are rapidly gaining market share, which has seen Tesco’s market share decreasing. It also has a large amount of debt. For now, although the Tesco share price is down and relatively cheap in my opinion, I prefer to look to other FTSE stocks for my portfolio. FTSE 250 opportunity I’m seriously considering adding F&C Investment Trust (LSE:FCIT) to my portfolio. Investment trusts provide exposure to a range of stocks under one umbrella. Such trusts are designed with a long-term perspective, which suits my style of investing. Unlike Tesco, the F&C share price has surpassed pre-crash levels. As I write this, I can buy shares in F&C for 830p per share, whereas prior to the crash, the shares were at 774p and a year ago they were 665p.  But the price recovery isn’t the only reason I like F&C. I like that it’s run by fund manager Paul Niven. He’s been with the company for over 25 years and is well respected having overseen years of success. Plus F&C has a diverse portfolio globally. F&C is the oldest investment trust in the world and currently invests in over 400 companies in 35 countries. I’m a fan of tech stocks and some such F&C has in its portfolio are Amazon, Apple and Microsoft. Finally, it has an excellent record of growth and achievement. I know past performance doesn’t guarantee future success, but it’s a good indicator for me. F&C recently announced it would be increasing dividends for a 50th consecutive year too. Risk and reward Like Tesco, F&C has its own risks. It invests heavily in emerging markets. Such markets are often susceptible to volatility, which can stem from political upheaval or natural disaster. These events can affect economic growth. Currently, F&C has its third largest asset allocation in emerging markets. If cases of Covid-19 rise, especially in countries where F&C has invested, it could also have a negative effect. Yet I would prefer to buy shares in F&C rather than invest my money in Tesco. F&C offers me greater protection through diversification. It also has a strong track record and history of success. I believe it can cope well with short-term volatility and flourish long term. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading 3 reasons why I think the Tesco share price can rise I’d invest £1k in Tesco shares Will Morrisons beat the Tesco share price in 2021? Is the current Tesco share price a buying opportunity? Should I buy Tesco shares or Amazon shares? Jabran Khan has no position in any shares mentioned. The Motley Fool UK has recommended Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Tesco share price is cheap, but I prefer this FTSE 250 stock instead appeared first on The Motley Fool UK.
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  47. Why I think the Tesco share price is cheap at 225p (23/04/2021 - The Motley Fool UK)
    At 225p, I think the Tesco (LSE: TSCO) share price is cheap. The company and the grocery market have both changed over the last year or so. Here, I’ll discuss these changes and explain why Tesco stock looks very buyable to my eye. Increased focus In recent months, Tesco has disposed of its businesses in Thailand and Malaysia (for £8.2bn), and Poland (for £181m). Based on continuing operations, just 7% of the group’s sales now come from international markets (Czech Republic, Hungary, and Slovakia). This shift to an even greater focus on the UK and Ireland is one change from a year ago. Tesco share price and company value Another change is that Tesco paid shareholders a special dividend of £5bn from the proceeds of the disposed businesses. It also did a 15-for-19 share consolidation. Just prior to the completion of the sale of the Thailand and Malaysia businesses in December, Tesco’s market capitalisation was £22.5bn (9.8bn shares in issue and share price at 230p). Today, the market cap is £17.3bn (7.7bn shares in issue and share price at 225p). The approximately £5bn difference in market cap but similar share price reflects the special dividend payout and share consolidation. Grocery market In addition to the changes within Tesco, there have been changes in consumer behaviour in the broader grocery market. Notably, a huge increase in online shopping because of the pandemic. Tesco more than doubled its online capacity to 1.5m slots a week in the early days of the pandemic. For its financial year ended 27 February, online sales increased 77% from £3.6bn to £6.3bn. Strategy It’s taken about 10 years for Tesco to recover from complacency about the threat of discounters Aldi and Lidl, taking its core UK customers for granted, and milking the UK cash flows for growth expansion (notably the disastrous attempt to enter the US market). However, as the pandemic was dawning, the company announced its UK turnaround was complete. This from a back-to-basics strategy of a relentless focus on customers, as well as rebuilding staff morale, and resetting relationships with suppliers. Furthermore, since the pandemic, customer scores on quality, value, and satisfaction have risen materially, leading chief executive Ken Murphy to say the brand is “in the best shape it’s been for 10 years”. Competition With Tesco having grown UK market share during the pandemic, including “gaining customers from all key competitors”, there’s good momentum in the business. Nevertheless, there are risks. The UK grocery market is, as the company acknowledges, “brutally tough”. Competition is an ever-present threat for Tesco. For example, Aldi and Lidl (handicapped by their lack of online ordering during the pandemic) could be resurgent as life normalises. These two have aggressive new store opening plans. According to the Financial Times: “Recent analysis from JPMorgan estimated that Tesco stores providing 29% of group sales overlap with a discounter’s new store”. I think the Tesco share price is cheap Despite the tough competition, I reckon Tesco’s in a stronger position than it’s been for many years. It plans to reward investors with reliable dividends from its prodigious cash flows. In addition, it’s given strong hints of future share buybacks Trading at 13 times this year’s forecast earnings and with a running dividend yield of over 4%, I believe Tesco’s shares are cheaply priced. They look very buyable to me at this level. CEO’s £500,000,000 Stake on Industry’s “Uber” Revolution We think that when a company’s CEO owns 12.1% of its stock, that’s usually a very good sign. But with this opportunity it could get even better. Still only 55 years old, he sees the chance for a new “Uber-style” technology. And this is not a tiny tech startup full of empty promises. This extraordinary company is already one of the largest in its industry. Last year, revenues hit a whopping £1.132 billion. The board recently announced a 10% dividend hike. And it has been a superb Motley Fool income pick for 9 years running! But even so, we believe there could still be huge upside ahead. Clearly, this company’s founder and CEO agrees. Learn how you can grab this ‘Top Income Stock’ Report now More reading Is the Tesco share price a FTSE 100 opportunity or one to avoid? Should I buy Tesco shares at the current price? The Tesco share price is down 20% in 2021. Here’s why I want to buy Is the Tesco share price too cheap to miss? Is the Tesco share price too cheap at current levels? G A Chester has no position in any of the shares mentioned. The Motley Fool UK has recommended Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Why I think the Tesco share price is cheap at 225p appeared first on The Motley Fool UK.
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  48. Can the Tesco share price climb higher? (16/06/2021 - The Motley Fool UK)
    The Tesco (LSE:TSCO) share price has been experiencing quite a bit of volatility lately. However, despite this, it remains basically flat over the last 12 months taking the firm’s share consolidation into account. Even after ignoring the adverse stock price effects of the £5bn special dividend paid in February this year, the Tesco share price has hardly been a stellar performer. But is that about to change? A mediocre trading update Last month, Tesco published its latest annual report covering the business’s performance between February 2020 and February 2021. On the face of it, these results weren’t particularly exciting. And I can see why the Tesco share price remained flat on the news. Overall revenues fell slightly from £58.1bn to £57.9bn, while underlying profits suffered considerably, declining by 21% to £1.7bn. However, upon closer inspection, there are a few reasons to be optimistic. Ignoring the revenue generated by petrol stations, the top line actually grew by around 7%. Given that the closure of pubs and restaurants resulted in an increase in grocery spending, I’m not too surprised. What’s more, the reduced performance from its fuel selling operations is also unsurprising given that a lot of cars remained parked throughout a large portion of 2020. A 7% growth in revenue is hardly ground-breaking. But for an established retail giant like Tesco, that’s not bad — and it even allowed the company to increase its market share for the first time in four years. One-off costs Seeing a large drop in profitability is never a pleasant sight. But in the case of Tesco, this came from increased operational expenses caused by the pandemic. While Covid-19 has decimated many businesses since early 2020, Tesco has remained relatively resilient. To date, around 30.2m individuals have received their second vaccination dose. As a result, everyday life has been slowly moving back towards normality, with the last of the lockdown restrictions set to be lifted in England on July 19 after the June 21 date was axed. All of this is to say that the pandemic-related expenses experienced by Tesco are ultimately a one-time event that is unlikely to be repeated moving forward. In other words, Tesco’s profitability may be making a swift return, potentially sending the Tesco share price to higher levels. The uncertainty surrounding the Tesco share price While the end of lockdown restrictions may allow profits to return, it may also adversely impact Tesco’s revenue. After all, now that restaurants and pubs have reopened their doors, the level of grocery spending is likely to be negatively affected.  Another potential issue is the return of in-store shopping. Online grocery shopping gained significant popularity last year, as shoppers sought to avoid coming into contact with other people. However, as in-store shopping footfall continues to recover, shoppers may return to discount stores like Lidl and Aldi instead of Tesco. And this, in turn, may result in the newly gained market share being lost. Combined, this adds a considerable level of uncertainty to the Tesco share price. Yet, with its first-quarter earnings report shortly coming out, a clearer picture may soon begin to form. Even with these risks, I do believe the Tesco share price can climb higher over the long term. But, for now, I’m waiting to see how Tesco performs in its next earnings report.  The post Can the Tesco share price climb higher? appeared first on The Motley Fool UK. In the meantime, I’m far more interested in this: One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading Should I buy shares in Deliveroo or Tesco? Should I buy Tesco shares or Sainsbury? 3 dividend stocks to buy Where will the Tesco share price go in June? At 226p, is the Tesco share price a bargain? Zaven Boyrazian does not own shares in Tesco. The Motley Fool UK has recommended Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  49. Buyout of IPIX at $60.00 a share would be (05/03/2021 - Reddit Stock Market)
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