Tesco Share Price Analysis

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Tesco Share Price Analysis

Tesco Share Price Is Close To Decade Highs

Tesco's share price has been on a bullish run for the last few years, with no end in sight. Back in 2025, many were saying the Tesco shares were overvalued, but it still closed the year with 22% gains.

According to analysts, one reason for this increase in the share price is Tesco's market share. By the end of 2025, Tesco had a market share of 28.7%, which shows it is effortlessly outpacing its rivals.

Tesco Sales Up By 2.4%

And if we look at the shopping data in the holiday season, the sales increased by almost 2.4%. Also, the CEO announced that they have launched 340 new brand products, which are sure to further improve sales this year.

The overall momentum of the Tesco shares is very strong right now. The best part is that the earnings are also increasing along with the share price of Tesco.

That's why the P/E ratio of Tesco is around 16.33, which is lower than the average of the FTSE 100. So, the stock price of Tesco is not overvalued at all.

In 2025, Tesco's EPS was 30p, which is an increase of around 19.5% from the previous year. Looking ahead, analysts think that Tesco can easily increase its earnings by another 10% in 2026.

One key risk for Tesco is a downturn in the economy. But Tesco can easily survive that as it also offers a lot of cheaper products.

Another good thing about Tesco is its dividend yield. The company enjoys strong sales, which are then converted into dividends. That's why Tesco has actually increased its dividend over the years.

Considering all these things, the Tesco share can be a great option for those who need a dividend stock. Also, the Tesco stock is in a good position to continue moving higher in 2026 when we look at the sales data.

However, Tesco does face fierce competition, but they already know how to survive in an environment like this. After all, Tesco has been around for multiple decades, and that's the type of experience that can't be replicated.

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