Analysis of Tesco share price for trading

The supermarkets sector is one of those most closely followed by stock market investors at present. We therefore propose in this article to study in detail one of the main leaders of this sector, Tesco. Here you can discover the quoted price for Tesco shares in real time and learn about the activity of this group as well as read a historical chart analysis.  

Trade Tesco shares!
75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Our advice for trading share

Tip number 1

We will first study the operations carried out by the group and which should enable it to enter emerging markets. This would allow it to broaden its presence in the world and the area of its operations.

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In the same way, we will keep an eye on the evolution of the use of current digital means by TESCO in order to benefit from a wider reach and to attract more customers around the world.

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The establishment of strategic partnerships or the takeover operations of other smaller companies by the TESCO group could also allow it to stimulate its activity and increase its profitability.

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Of course, the competition which the TESCO group must face is important and you must take this into account during this analysis, with particular attention to products similar or imitated by other companies.

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Innovation is also at the heart of TESCO's strategy to remain competitive and face these competitors.

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We will also keep an eye on government policies and the evolution of taxation because these two elements can have an undeniable influence on the group's activities and on its commercial operations and therefore on its stock market action.

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Finally, we will also monitor TESCO's relationships with its suppliers, who largely depend on the business of this group.

Trade Tesco shares!
75% of retail investor accounts lose money when trading CFDs with this provider.

About the Tesco Group:

The English group Tesco is one of the ‘Big Four’ leading supermarket chains in the United Kingdom. Its activities can be divided into three major categories as follows:

  • The distribution of food and non-food products in the United Kingdom with around 3,561 supermarkets.
  • International distribution with 4,256 supermarkets in Asia and Europe.
  • Finally, the provision of financial services with Tesco Bank.

Tesco achieves over 70% of its turnover in the United Kingdom and the rest in Europe and Asia.

 

Tesco’s main competition:

Tesco is currently one of the world’s largest distributors. In reality, the company ranks fourth worldwide in terms of sales revenues and is rivalled by several other big companies in the same line of business. We’d like to present you with Tesco’s main competitors so that you can keep a close eye on their developments and establish an optimal strategy, should you wish to trade this asset.

The world leader in this line of business is currently America’s Walmart, followed closely by Costco and French company Carrefour.

Right after Tesco, which ranks fourth, are the following companies, going from fifth to tenth respectively: Kroger, Lidl, Metro, ALDI, Target and AEON.

Finally, seeing as the Casino, Auchan, Intermarché and Leclerc companies rank between 11th and 25th, they don’t represent a serious menace for Tesco.

 

Tesco’s main partners:

Here are some of the most strategic partnerships established by Tesco in the last few years.

  • In 2009, Tesco signed a partnership with the Fortis bank in order to establish a joint venture in the field of automobile and home insurance (Tesco bank).
  • Since 2009, Tesco has been a partner of Ageas in the field of automobile and home insurance thanks to its Tesco Bank subsidiary. The partnership was extended in 2014.
  • In 2013, Tesco signed a partnership with Chinese company China Resources Enterprise with the aim of forming a joint venture aspiring to become the leader in the field of distribution in China.
  • In 2014, British company Community called for a partnership with Tesco with the aim of bettering the conditions of its supplier chain in the United Kingdom.

 

Price analysis of Tesco shares:

The price of Tesco shares is currently quoted on the Main Market of the London Stock Exchange. It is also integrated into the calculation of the FTSE 100 stock market index.

Since its IPO in 2012, Tesco shares followed an overall downwards trend with weak volatility until December 2014. It then recovered several lost points until April 2015 when it registered a new bearish trend. 

 

Benefits and Drawbacks

To understand how the TESCO share can evolve in the more or less long term, it is also essential to know the advantages and disadvantages of this value and therefore the strengths and weaknesses of this company because it is these elements that are used by other investors in order to decide whether or not a security is worth buying. We therefore invite you to discover the main strengths and weaknesses of this value and of the TESCO company.

With regard to the advantages of the TESCO stock first of all, we can in particular retain the following elements:

  • First of all, we will appreciate the group's geographic development strategy, which is constantly aiming to position itself on new markets and which, through strategic operations, is becoming a major player in different countries of the world.
  • The same goes for the strategy of diversification of the group's activities. It tends to develop in various segments such as the retail sale of books, clothing, electronic devices, furniture, petrol and software and has even been offering financial services, services for several years. telecoms or the Internet.
  • The importance of TESCO in its market is also one of its major assets. Indeed, this company is one of the largest companies on the London stock market. It therefore benefits from high liquidity, which is an asset for its stock market action.
  • The fact that the TESCO group has several private labels allows it to have a strong brand image on the market and offers it real added value to reach consumers.
  • The same goes for the innovative packaging techniques used by TESCO and which allow it to make a difference with its competitors in the eyes of customers.
  • The size of this company is also interesting as a strong point since TESCA currently employs more than 500,000 people worldwide and has more than 6,500 stores located in 14 different countries.
  • We also note the quality of the group's innovative strategies in terms of marketing and advertising.
  • Finally, the TESCO group benefits from strong financial solidity which can reassure investors.

Of course, the TESCO group and its stock market action have not only advantages but also some weak points that we suggest you discover now:

  • First of all, the TESCO group has been the subject of various controversies which have caused it certain problems and in particular with regard to its brand image.
  • Finally, we also regret for the moment the lack of presence of this company in emerging markets when some of its direct competitors have already succeeded in establishing themselves there and developing more and more rapidly.

How to trade in Tesco shares online?

If you wish to trade in Tesco shares online you should know that this is possible, and actually quite easy, using CFDs available through Forex brokers. Wait no longer to register with one of the best brokers currently on the market.

Trade Tesco shares!
75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.