No one can say how the past five years were politically and economically by looking at Tesco (LSE: TSCO) The stock price. It is a picture of calm emerging progress, as 90 % climbed over a period of five years, 60 % on three and 30 % in the past 12 months.

Tesco is no longer chasing global hegemony anymore, and this may be its largest strength. Instead, it is primarily intended to tell the local grocery market, and do a good job of it.

FTSE 100 Model stocks

The results of 2024, published in April, showed suspicion throughout the United Kingdom and Ireland, an increase of 4 %, while operating profits increased by 10.9 % to 3.13 billion pounds, and the profits per share increased by 17 % to 27.38 points.

Those strong numbers implemented in the Tesco Q1 Trading update, which was published on June 12. Group sales increased by 4.6 % to 16.38 billion pounds, with UK sales increased by 5.1 % to 12.3 billion pounds. The market share also rises again, as 44 basis points rose to 28 %. Both food and non -food achieved gains, while sales online increased by 11.5 %.

Profit distributions grow

Tetco -consistent profits high are another great appeal. The entire year payments rose 13.22 % to 13.7 pixels in 2025, after an increase of 11 % in the previous year. The return currently is 3.26 %, just less than FTSE 100 The average, but only because the stock price has been raced forward.

Expectations indicate a slower profit growth next year, with a rise of 1.5 % to 13.9p, then 8.6 % in 2027. Tesco does not always raise its push in a straight line, but it tends to move in the right direction over time. It also restores cash through shares resets. Since October 2021, TESCO has reshaped 2.8 billion pounds of stocks.

This is a friend of the shareholders. Re -purchases reflect this confidence in the company’s ability to generate strong future cash flows.

Narrow margins

Supermarkets work on narrow margins, and Tesco is not an exception of 3.9 %. With the high national insurance of the employer in April, along with a significant increase in the minimum wage, these margins will remain thin. ASDA will not help.

Analysts expect that profits will keep steady, but not an increase. 15.35 The price ratio to the profits, which looks fair value instead of the price. The public budget is strong and net debt decreased by 2.4 % to 9.45 billion pounds last year. But with inflation is still sticky and the crisis continues to cost the living, there is a large space for short -term volatility.

The analyst’s feeling is still strong

Can shares climb another 30 % this year? I would like to say this is unlikely, and I am not alone. The 13 analysts who have one -year expectations have been eliminated in an average goal of 422.9p, about 0.7 % above 420 pixels today. This is a great slowdown although the expectations are not placed in the stone. Estimates range from 360 pixels to 470 pixels.

Therefore, investors should not assume that they can still jump on the Tesco Gravy train and enjoy more fixed growth. It is likely to slow from here. But anyone looking to purchase the FTSE 100 distribution growth stock is reliable with a long -term viewpoint, you should take into account this one. Especially if we get a decline in the summer market in stocks.