Tesco (LSE: TSCO) shares have gained 35 % over the past five years, although the price has been somewhat volatile along the way.

The retailing sector has been pressing recently on Tesco. But against it, investors often see companies that sell the basics as safe havens in times of uncertainty in the stock market.

Tesco holds its pioneering position in the market as one of the first in the grocery field in the United Kingdom. In fact, the latest survey in Kantar showed that the market share is actually growing to 28 %. Tesco seems to be separated from the threat of competition from cheap such as Aldi and Lidl well enough.

2026 Outlook

We are increasingly seeing the price competition crawling to our high streets again. So what are the expectations for Tesco in the current year and beyond?

The trading update in the first quarter scheduled for June 12 will give us an idea of ​​how to start the current year. In 2024/25, the results of the results, the company told us that it expects the modified operating profits for the year 2025/26 in the range of 2.7 billion pounds to 3.0 billion pounds.

This is just less than 3.128 million pounds per year, which is just ended, and reflects.Another increase in the competitive density of the UK market“It was seen in the first few months of the year.

Currently, the mediator expectations show that the transformation into profits of one arrow (EPS) is about 26p. This will be about 12 % before the number 23.13P diluted from EPS for 2024/25. Perhaps this is a little optimistic about the company’s private expectations? It may sometimes take months to feed the broker updates.

More progress

City analysts expect profits to grow to 32 pixels per share by 2028. This will be an impressive increase of 38 % in just three years. They must definitely have many optimistic possibilities in it. Interest rates must decrease in the next three years. When its new fixed level must see, but I cannot see us back near the old 0.5 % beautiful levels for a long time.

I think it will also need to stabilize the US -led commercial wars today, and to be exposed to economic growth to return to power. Will both of them happen by 2028? Maybe I am optimistic, but I put my investment money on it, but it takes a long time.

Do I think we should think about buying Tesco now, on the back of these optimistic expectations? Well, I cannot remember a time when I did not register Tesco as a purchase candidate in my list. Every time I have investment money, it seems that I find something better. I am still upward, as is always the case.

evaluation

We look at a price ratio to the effects of (P/E) from about 14.5, very close to FTSE 100 middle. It can decrease to 12 by 2028 if analysts are right.

With such assessments, about 3.5 % profit distributions, I can understand why Tesco shares keep the cornerstone in many shares and shares. I am finally thinking about adding some to mines.