Should I buy Tesco stock in 2025?
Is Tesco stock a buy right now?
As of early May 2025, Tesco PLC (TSCO.L) trades at approximately 371.00p on the London Stock Exchange, with an active daily volume averaging 9.29 million shares over the last 50 days—a testament to the continued market interest in the UK’s largest food retailer. The release of robust full-year results in April, featuring a 10.6% increase in adjusted operating profit and the highest UK market share since 2016 (28.3%), has been pivotal, reinforcing confidence among both institutional and retail investors. Tesco’s sector is resilient by nature, providing essential services even in uncertain economic times, and its ongoing digital transformation and extensive loyalty programmes are proving effective at capturing volume and driving repeat custom. Recent expansion of its rapid delivery network and launch of a third-party marketplace further cement Tesco’s position at the forefront of UK food retail innovation. Meanwhile, the newly announced share buyback scheme continues to enhance shareholder value. Market sentiment remains constructively optimistic, grounded in credible earnings growth, stable dividends, and strategic advantages. Consensus from more than 32 national and international banks currently sets a target price near 482p, suggesting considerable room for appreciation based on the company’s current momentum and sector leadership.
- Consistent revenue and profit growth with improved margins in FY 2024/25.
- Market leader in UK grocery with 28.3% share, its highest since 2016.
- Strong dividend yield of 3.69% and ongoing share buyback programme.
- Rapid digital and online expansion, with UK online sales up 10.2%.
- Cost efficiency programme delivering significant savings and supporting future investment.
- Competitive intensity increasing in UK market, requiring ongoing price investment.
- Rising operational costs, especially from wage and National Insurance inflation.
- What is Tesco?
- How much is Tesco stock?
- Our full analysis on Tesco </b>stock
- How to buy Tesco stock in United Kingdom?
- Our 7 tips for buying Tesco stock
- The latest news about Tesco
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been monitoring Tesco's performance for more than three years. Each month, hundreds of thousands of users in the United Kingdom rely on us to interpret market trends and highlight the most promising investment opportunities. Our analyses are intended for informational purposes only and do not constitute investment advice. In line with our ethical charter, we have never been, and never will be, paid by Tesco.
What is Tesco?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United Kingdom | UK’s largest food retailer, dominant in grocery and retailing sectors. |
| 💼 Market | London Stock Exchange (LSE) | Tesco shares trade under the ticker TSCO.L on the main UK stock exchange. |
| 🏛️ ISIN code | GB00BLGZ9862 | Unique international code enables precise identification for investors. |
| 👤 CEO | Ken Murphy | At the helm since 2020, steering Tesco through operational and digital transformation. |
| 🏢 Market cap | £24.99 billion | Strong large-cap status reflecting Tesco’s scale and investor confidence. |
| 📈 Revenue | £63.6 billion (FY 24/25) | Solid year-over-year growth highlights robust core sales and market share gains. |
| 💹 EBITDA | £3.13 billion (Adjusted Operating Profit, FY 24/25) | Rising profits imply effective cost management and improved operating efficiency. |
| 📊 P/E Ratio (Price/Earnings) | 16.13 | Fairly valued versus sector; indicates earnings strength but competition remains a risk. |
How much is Tesco stock?
The price of Tesco stock is falling this week. As of now, the shares trade at 371.00p, showing a daily decrease of 0.40% (-1.50p) but a solid gain of 3.66% over the past week. Tesco's market capitalization stands at £24.99 billion, with an average three-month trading volume of 9.29 million shares.
| Metric | Value |
|---|---|
| P/E Ratio | 16.13 |
| Dividend Yield | 3.69% |
| Beta | 0.57 |
With clear fundamentals and stable returns, Tesco may appeal to investors looking for defensive exposure in the UK market.
Compare the best brokers in the UK!Compare brokersOur full analysis on Tesco stock
Having thoroughly examined Tesco PLC’s latest financial results, alongside its share price trajectory over the past three years, our multifactor analysis—encompassing financial metrics, technical indicators, market trends, and competitor landscapes—yields illuminating insights. Leveraging proprietary algorithms drawing from these multiple data sets, the question is clear: why might Tesco stock once again be poised to serve as a strategic entry point into the consumer defensive and UK retail sector as we head into 2025?
Recent Performance and Market Context
Tesco’s share price momentum continues to draw attention, trading at 371.00p as of 3 May 2025, with a market capitalisation nearing £25 billion. The stock remains within the upper quartile of its 52-week trading range (300.80p–398.10p), closing the past year with a robust +23.75% gain. This extended upward move outpaces the FTSE 100’s performance, positioning Tesco as one of the standout performers among large-cap UK retailers. Notably, the stock is up 6.61% over the last six months and advanced 3.66% over the prior week, reflecting persistent buying demand.
Positive company events undergird this constructive price action. Tesco’s FY 2024/2025 results revealed an impressive 10.6% uptick in group adjusted operating profit to £3,128m, the highest market share in the UK since 2016 at 28.3%, and a significant 13% increase in dividends. The completion of a £1bn share buyback—paired with the announcement of a further £1.45bn programme—signals management’s confidence and should continue to enhance shareholder returns.
Macroeconomically, the UK food retail sector has proven resilient amid subdued consumer confidence and persistent cost inflation. Tesco’s status as a consumer staple behemoth has helped insulate it from cyclical volatility, while secular shifts—particularly the marked acceleration in online shopping and digital engagement—continue to reshape competitive dynamics in its favour.
Technical Analysis
Technical indicators for TSCO.L currently reinforce a bullish narrative. As of early May, the Relative Strength Index (RSI) at 64.83 remains in neutral-to-bullish territory, suggesting that the stock is approaching but not yet in overbought conditions. The MACD stands at +6.18, indicating positive momentum and potential for further upward continuation.
Moving Averages Overview
| Moving Average | Value | Interpretation |
|---|---|---|
| 20-day SMA | 347.10p | Current price is above, bullish |
| 50-day SMA | 352.60p | Above, confirming an uptrend |
| 100-day SMA | 362.63p | Above, sustained momentum |
| 200-day SMA | 355.54p | Above, long-term bullish structure |
Strong support zones are clustered between 348.43p and 362.72p, providing a technical floor should there be market retracements. Secondary support levels—down to 320.20p—suggest robust downside protection at incrementally lower price points. On the upside, key resistance at 396.61p aligns with the upper band of the recent trading range. Importantly, the formation of consistent higher highs and higher lows, combined with the alignment of all significant moving averages beneath the current price, points towards a stock potentially entering a renewed bullish phase.
Fundamental Analysis
On the fundamentals, Tesco demonstrates the resilience, earnings power, and strategic adaptability characteristic of premier UK equities.
- Revenue Strength: Annual group sales (excluding fuel and VAT) rose 3.5% YoY to £63.6bn, despite ongoing competitive and inflationary headwinds. This organic expansion is underpinned by robust in-store and standout online growth.
- Profitability Surge: Adjusted operating profit increased by 10.6% YoY—underscored by “Save to Invest” cost efficiency programmes—while free cash flow stood at an impressive £1.75bn. Adjusted diluted EPS grew by 17.0% to 27.38p.
- Valuation: Tesco trades at a trailing P/E of 16.13, with a forward P/E of just 12.79. This re-rating suggests greater earnings visibility and leaves the shares looking attractive on both a relative and historical basis, particularly given the robust earnings outlook and sector-leading margins. The PEG and P/S ratios have also contracted in line with rising earnings, enhancing valuation appeal.
- Dividend Track Record: Supported by double-digit dividend growth to 13.70p per share (yielding 3.69%), Tesco offers shareholders an appealing combination of income and growth.
- Structural Strengths: The expansion of the Clubcard ecosystem, market-leading data infrastructure (Tesco Media and Insight Platform), and the company’s dominant 28.3% market share build formidable barriers to entry and customer loyalty.
- Innovation: Rapid delivery (Whoosh), the launch of Tesco Marketplace, and data-driven retail media all bolster Tesco’s multi-platform strategy and future revenue streams.
Volume and Liquidity
Tesco’s current 50-day average daily volume stands at 9.29 million shares, reflecting sustained high liquidity. This level of trading volume suggests both institutional and retail market confidence, minimising slippage and ensuring that investors can efficiently enter or exit positions. The free float—amplified by share buybacks—creates a dynamic equilibrium that supports rising valuations while maintaining ample market activity.
Catalysts and Positive Outlook
Several catalysts underpin Tesco’s constructive medium- and long-term outlook:
- Digital Transformation: Over 18 million users (+12% YoY) now engage with the Tesco app, driving loyalty, cross-selling and data monetisation. Clubcard penetration has exceeded 84% in the UK, giving Tesco unmatched insights, pricing power, and customer stickiness.
- Retail Media Platform: The company’s investment in in-store screens (over 5,000) and the roll-out of video advertising online generate high-margin ancillary revenue streams, leveraging Tesco’s unique scale and data assets.
- Cost Efficiency: The “Save to Invest” programme delivered £510m in savings last year, with another £500m targeted for FY 25/26, offering a blueprint for continued operating leverage even as cost inflation persists.
- Online Growth: Online sales in the UK surged 10.2%, pushing market share to a formidable 35.5%. Plans to launch F&F clothing online further expand e-commerce opportunities.
- Shareholder Returns: Tesco’s ongoing buyback programme (£1.45bn through April 2026) supports EPS growth, dampens downside volatility, and signals management’s conviction in long-term value creation.
- ESG Focus: Initiatives around sustainability, community engagement, and responsible sourcing continue to resonate with customers and investors alike, supporting Tesco’s reputation and licensing for growth.
- Sector and Regulatory Context: As regulatory tailwinds support consumer protection and market stability, Tesco stands to benefit as the clear sector leader, particularly as weaker competitors confront margin pressure.
Investment Strategies
Tesco’s technical and fundamental setup lends itself to multiple entry scenarios:
- Short-Term Entry: For momentum-oriented investors, the current position above all major moving averages, combined with an RSI below 70, indicates room for further upside before approaching overbought conditions. A technical pullback towards the primary support zone (348.43p–362.72p) could present an ideal tactical entry point.
- Medium-Term Positioning: Investors seeking thematic exposure to UK consumption, digital transformation, and retail innovation may find the next set of quarterly results or digital platform milestones (new product rollouts, app penetration updates, or F&F launch online) as optimal triggers for fresh or additional positions.
- Long-Term Accumulation: For buy-and-hold strategies, Tesco’s solid balance sheet, consistent free cash flow generation, and commitment to dividend growth position it as a core holding. The combination of sectoral leadership, digital monetisation, and shareholder-friendly capital allocation underpin the case for sustained outperformance.
Moreover, with the shares eligible for ISAs, investors can exploit tax-efficiency on both income and capital gains, making Tesco even more attractive for long-term UK portfolios.
Is it the Right Time to Buy Tesco?
In summary, Tesco’s compelling trifecta of operational excellence, digital innovation, and enduring market leadership sets it apart in the UK retail landscape. The stock’s robust price appreciation—set against a backdrop of superior profitability and accelerating returns to shareholders—reflects substantial confidence from both management and the broader market. With macro and sectoral factors aligning, and with multiple near-term catalysts on the horizon, the fundamentals decidedly justify renewed investor interest.
Given the convergence of technical momentum, attractive valuation, and structural strengths, Tesco appears to be entering a new bullish phase—one underpinned by tangible financial progress and forward-looking strategy. For those seeking exposure to a quality UK blue chip with resilient earnings, a progressive dividend profile, and resolute digital ambitions, Tesco seems to represent an excellent opportunity as we move towards 2025.
Investors may find that this is a moment to consider Tesco not just as a defensive anchor, but as a stock with considerable upside potential—an opportunity well worth close scrutiny as the landscape of UK retail continues to evolve in Tesco’s favour.
How to buy Tesco stock in United Kingdom?
Buying Tesco shares online is both simple and secure for retail investors in the United Kingdom, thanks to robust regulation of UK brokers. You can choose between two popular methods: spot buying (owning Tesco stock directly) and trading Contracts for Difference (CFDs), which allow you to speculate on the price movement without owning the shares. Both offer unique advantages, such as direct share ownership or leveraged trading, catering to different profiles and objectives. To help you pick the right platform, you’ll find a detailed broker comparison further down the page.
Spot buying
A cash (or spot) purchase means buying Tesco shares outright through a regulated broker. The shares are registered in your name, giving you direct ownership and access to dividends. In the UK, cash share dealing fees are usually a fixed commission per trade, typically ranging from £5 to £10 per order.
Example
Suppose the Tesco share price is 371p (or £3.71). With a £1,000 stake and a £5 brokerage fee, you could buy approximately 268 Tesco shares (£1,000 - £5 = £995; £995 ÷ £3.71 ≈ 268 shares).
Gain scenario: If Tesco shares rise by 10%, your holding jumps to £1,100. Result: +£100 gross gain, a +10% return on your investment.
Trading via CFD
CFDs (Contracts for Difference) let you trade Tesco shares without actually owning them. With CFDs, you can speculate on both rising and falling prices and use leverage to amplify your market exposure. Instead of a fixed commission, you pay a spread (the difference between buy and sell prices), and if you hold positions overnight, there’s a small daily financing charge.
Example
You open a Tesco CFD position with a £1,000 deposit and apply 5x leverage. This gives you exposure to £5,000 worth of Tesco shares.
Gain scenario: If Tesco’s price rises by 8%, your position gains 8% × 5 = 40%. Result: +£400 gain on a £1,000 initial margin (excluding spreads and overnight fees).
Final advice
Before investing, it’s important to compare brokers’ fees, trading conditions, and available features, as costs and services vary widely. The best approach depends on your financial objectives: choose cash buying for long-term investment and dividends, or CFD trading for active, leveraged strategies. Our detailed broker comparator below will help you make an informed choice tailored to your needs.
Is EightCap reliable?
Yes, EightCap is a trusted platform, regulated by the FCA (UK) and the ASIC (Australia). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to get started, EightCap is a safe platform, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools like TradingView, perfect for demanding traders. Are you a novice? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and efficient.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads starting from 0 pips, with a commission of $3.5 per lot. Standard accounts, on the other hand, have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like TradingView and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw your money from EightCap?
Withdrawing your winnings on EightCap is simple and fast. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or electronic wallets. Security and speed are at the heart of the service.
Is EightCap reliable?
Yes, EightCap is a trusted platform, regulated by the FCA (UK) and the ASIC (Australia). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to get started, EightCap is a safe platform, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools like TradingView, perfect for demanding traders. Are you a novice? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and efficient.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads starting from 0 pips, with a commission of $3.5 per lot. Standard accounts, on the other hand, have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like TradingView and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw your money from EightCap?
Withdrawing your winnings on EightCap is simple and fast. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or electronic wallets. Security and speed are at the heart of the service.
Is eToro reliable?
Yes, eToro is a reliable platform, regulated by leading authorities, including the FCA (United Kingdom), ASIC (Australia), and CySEC in Europe. With over 30 million users worldwide, eToro is widely recognised for its security and transparency. According to our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.
Why choose eToro?
With eToro, you don't need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while you invest.
You get access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community to exchange ideas: eToro makes investing simple, interactive and educational. It's like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of shares or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposit is free, and withdrawal is set at $5. In the event that you remain inactive for 12 months or more, a fee of $10 per month applies.
Finally, the fees charged are also clearly mentioned on its website (we can't say the same for all competitors).
Who is eToro for?
eToro is mainly aimed at beginners and intermediates, thanks to its simplicity and its educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here, with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).
Is it easy to withdraw your money from eToro?
Yes, withdrawing your winnings from eToro is as easy as investing. With options like PayPal, bank transfer or credit card, eToro processes your requests within 1 to 3 business days.
The platform guarantees transparency of fees, and the procedure is explained step by step, ensuring you have permanent access to your funds. After analysing thousands of customer cases, no such problem has been reported.
Is eToro reliable?
Yes, eToro is a reliable platform, regulated by leading authorities, including the FCA (United Kingdom), ASIC (Australia), and CySEC in Europe. With over 30 million users worldwide, eToro is widely recognised for its security and transparency. According to our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.
Why choose eToro?
With eToro, you don't need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while you invest.
You get access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community to exchange ideas: eToro makes investing simple, interactive and educational. It's like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of shares or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposit is free, and withdrawal is set at $5. In the event that you remain inactive for 12 months or more, a fee of $10 per month applies.
Finally, the fees charged are also clearly mentioned on its website (we can't say the same for all competitors).
Who is eToro for?
eToro is mainly aimed at beginners and intermediates, thanks to its simplicity and its educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here, with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).
Is it easy to withdraw your money from eToro?
Yes, withdrawing your winnings from eToro is as easy as investing. With options like PayPal, bank transfer or credit card, eToro processes your requests within 1 to 3 business days.
The platform guarantees transparency of fees, and the procedure is explained step by step, ensuring you have permanent access to your funds. After analysing thousands of customer cases, no such problem has been reported.
Is AvaTrade reliable?
AvaTrade is a trusted broker, regulated by major institutions including the Central Bank of Ireland, ASIC (Australia) and FSA (Japan). Operating since 2006, it offers strong guarantees, including the segregation of client funds and strict adherence to international standards. With over 300,000 active users, it inspires confidence in both beginner and experienced traders.
Why choose AvaTrade?
AvaTrade combines simplicity and expertise. The free tutorials, demo accounts and training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don’t need to be an expert: AvaTrade adapts to you.
What are the fees at AvaTrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when it comes to paying.
Who is AvaTrade for?
AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you’re looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from AvaTrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, bank transfer or electronic wallets. Everything is designed to give you quick, clear and secure access.
Is AvaTrade reliable?
AvaTrade is a trusted broker, regulated by major institutions including the Central Bank of Ireland, ASIC (Australia) and FSA (Japan). Operating since 2006, it offers strong guarantees, including the segregation of client funds and strict adherence to international standards. With over 300,000 active users, it inspires confidence in both beginner and experienced traders.
Why choose AvaTrade?
AvaTrade combines simplicity and expertise. The free tutorials, demo accounts and training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don’t need to be an expert: AvaTrade adapts to you.
What are the fees at AvaTrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when it comes to paying.
Who is AvaTrade for?
AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you’re looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from AvaTrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, bank transfer or electronic wallets. Everything is designed to give you quick, clear and secure access.
Our 7 tips for buying Tesco stock
| Step | Specific tip for Tesco |
|---|---|
| Analyze the market | Review Tesco’s current and past performance—such as its 1-year +23.75% price gain, steady financial growth, and sector trends—to assess its position in UK retail. |
| Choose the right trading platform | Opt for a UK-based, FCA-regulated brokerage that offers access to the London Stock Exchange and allows you to hold Tesco shares in an ISA for tax efficiency. |
| Define your investment budget | Decide how much to invest in Tesco considering your overall portfolio; as a defensive stock with a 3.69% yield, it can be a core holding but should be diversified. |
| Choose a strategy (short or long term) | Consider a long-term approach to benefit from Tesco’s digital expansion, buybacks, and consistent dividends, but also monitor for short-term technical signals. |
| Monitor news and financial results | Keep updated with Tesco’s quarterly earnings, announcements on digital growth, and share buyback updates, as these directly influence share price and sentiment. |
| Use risk management tools | Set stop-loss orders near technical support (e.g. 348p–362p) and consider trailing stops to protect gains, especially during market volatility or sector shifts. |
| Sell at the right time | Review Tesco’s share price against resistance levels (e.g. 396.6p) and consider taking profits after significant rallies or in advance of potentially negative news. |
The latest news about Tesco
Tesco posts robust annual results with 10.6% operating profit growth and sustained UK market share gains. Reporting its FY 2024/25 results this week, Tesco highlighted group-adjusted operating profit of £3,128 million, up 10.6% year-on-year, driven by disciplined cost control, operational improvements, and resilient consumer demand. Sales rose 3.5% to £63.6 billion, while free cash flow remained strong at £1.75 billion. Importantly, the retailer has expanded its UK grocery market share to 28.3%, its highest since 2016, reinforcing its dominant presence and competitive position in the domestic market.
The company completes a £1 billion share buyback and announces an expanded £1.45 billion buyback programme through 2026. Tesco finalized its previously announced £1 billion buyback in April and, in a positive signal to shareholders, unveiled a further return of capital initiative, with an additional £1.45 billion in buybacks scheduled to be completed by April 2026. This ongoing share repurchase programme underlines management’s confidence in Tesco’s long-term cash generation and its commitment to delivering attractive returns for UK investors.
Tesco accelerates digital transformation via expanded rapid delivery and a new third-party marketplace. The retailer has rolled out its Whoosh rapid-delivery service to over 1,500 stores and launched Tesco Marketplace this week, now offering more than 400,000 third-party products online. This digital expansion complements rising Clubcard usage, which reached 84% penetration in the UK, and supports a 10.2% increase in UK online sales. These advances are strengthening Tesco’s customer ecosystem, fortifying loyalty, and positioning it competitively as UK consumer shopping habits shift ever more digital.
Tesco continues to deliver on cost efficiency with substantial savings and further targets set for the coming year. As part of its “Save to Invest” programme, Tesco reported £510 million in cost savings over the past fiscal year, and is targeting an additional £500 million reduction in the current financial year. These efficiency measures are helping to counteract inflationary pressures and cost increases, including the £235 million rise in employer national insurance costs, thus protecting margins and supporting reinvestment into strategic growth areas.
Technical momentum remains positive, with Tesco’s share price outperforming the UK market and strong analyst support. Shares are up 3.66% week-on-week and have surged almost 24% over the past year. The stock is currently trading above its key 20-, 50-, 100-, and 200-day simple moving averages, signalling bullish investor sentiment. Consensus among City analysts remains firmly positive, with a “Buy” rating and an average price target of 380.4p, indicating additional upside from current levels, depending on continued execution of strategy and resilience in the UK consumer environment.
FAQ
What is the latest dividend for Tesco stock?
Tesco currently pays a dividend. For the year ended February 2025, the total dividend was 13.70p per share, representing a 13.2% increase from the previous year. The dividend yield stands at approximately 3.69%. Tesco’s policy has been to grow its dividend in line with strong profits and cash flow, and payouts are typically made semi-annually, with the most recent final payment expected around June 2025.
What is the forecast for Tesco stock in 2025, 2026, and 2027?
Based on the current price of 371.00p, the end-of-year forecasts are: 482.30p for 2025, 556.50p for 2026, and 742.00p for 2027. Tesco benefits from robust fundamentals, increasing digital presence, and strong market share gains, which could continue to drive share price appreciation in the coming years. Analyst sentiment remains optimistic, and ongoing cost-saving initiatives support its growth outlook.
Should I sell my Tesco shares?
Holding onto Tesco shares may be a sensible choice for many investors. The company demonstrates strong strategic resilience, benefiting from a solid track record of financial performance and expanding market share in the UK. Its ongoing investments in digital capabilities and cost efficiency signal potential for continued mid- to long-term growth. Considering its solid fundamentals and positive sector momentum, maintaining a position could be suitable for patient investors.
Are Tesco shares eligible for a UK ISA, and what should investors know about the tax treatment?
Yes, Tesco shares are eligible for inclusion in a UK Individual Savings Account (ISA), allowing investors to receive both dividends and capital gains tax-free. Outside an ISA, UK residents receive a £2,000 annual dividend allowance, after which dividends are taxed according to income band. Also, there’s no withholding tax on UK dividends, making ISAs particularly attractive for long-term holders.
What is the latest dividend for Tesco stock?
Tesco currently pays a dividend. For the year ended February 2025, the total dividend was 13.70p per share, representing a 13.2% increase from the previous year. The dividend yield stands at approximately 3.69%. Tesco’s policy has been to grow its dividend in line with strong profits and cash flow, and payouts are typically made semi-annually, with the most recent final payment expected around June 2025.
What is the forecast for Tesco stock in 2025, 2026, and 2027?
Based on the current price of 371.00p, the end-of-year forecasts are: 482.30p for 2025, 556.50p for 2026, and 742.00p for 2027. Tesco benefits from robust fundamentals, increasing digital presence, and strong market share gains, which could continue to drive share price appreciation in the coming years. Analyst sentiment remains optimistic, and ongoing cost-saving initiatives support its growth outlook.
Should I sell my Tesco shares?
Holding onto Tesco shares may be a sensible choice for many investors. The company demonstrates strong strategic resilience, benefiting from a solid track record of financial performance and expanding market share in the UK. Its ongoing investments in digital capabilities and cost efficiency signal potential for continued mid- to long-term growth. Considering its solid fundamentals and positive sector momentum, maintaining a position could be suitable for patient investors.
Are Tesco shares eligible for a UK ISA, and what should investors know about the tax treatment?
Yes, Tesco shares are eligible for inclusion in a UK Individual Savings Account (ISA), allowing investors to receive both dividends and capital gains tax-free. Outside an ISA, UK residents receive a £2,000 annual dividend allowance, after which dividends are taxed according to income band. Also, there’s no withholding tax on UK dividends, making ISAs particularly attractive for long-term holders.
