Tesco Is A Share To Buy

Tesco yesterday announced a slow down in UK sales but said this won’t stop it meeting full-year forecasts and it is still considered a share to ‘buy’ by The Share Centre.

Tesco Chief Executive, Terry Leahy commented  “Tesco has made a solid start to the new financial year. We’re making good progress with our strategy: investing in the shopping trip for customers; driving strong productivity gains; growing space and winning market share.

The long-term global recovery is well underway although the pace and strength of economic recovery varies across our markets. We’re in good shape and well-positioned to deliver further growth as the economic environment continues to improve.”

According to Finance Director Laurie McIlwee, although customers in the UK continue to face some uncertainties about their personal finances going forward, Tesco continue to see evidence of a steady consumer recovery.

Away from foods other areas of Tesco are performing well. For example Tesco Direct has in particular seen a growth in sales of televisions as result of their successful World Cup marketing campaign.

Nick Raynor, The Share Centre’s Investment Adviser, said “Overall, we see no reason to change our ‘buy’ recommendation as Tesco is a strong defensive stock that offers investors seeking growth a good return.

It is still our preferred supermarket due to its well executed strategy, concentrating on keeping prices down, margins steady and developing international presence.”

At the time of writing the Tesco share price was up 1.65p at 396.15p.

Investors should of course make their own judgements on buying or selling shares and if in doubt seek independent financial advice.