Tesco Shares Worth Buying

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Tesco Shares Worth Buying

Are Tesco (Tsco) Shares Still Worth Buying?

Tesco (TSCO) is a big name in the UK stock market with decades of history. In 2025, the Tesco (TSCO) stock gave more than 20% return, which was pretty good given its historic performance.

But can Tesco (TSCO) shares still give similar returns in the next 12 months or not? To understand this, we must take a closer look at Tesco's (TSCO) fundamentals.

Tesco (Tsco) Has A 3.2% Dividend Yield

According to the analysts, the expected EPS of the company will be 28.4p for the year. This means the P/E ratio of the company will be around 16.

quick look at the P/E ratio of the FTSE 100 shows it is near 13.5. So, there's no doubt that Tesco (TSCO) stocks are a little overvalued, considering it is in the supermarket niche.

But despite being overvalued a little, Tesco (TSCO) stock is still capable of giving strong returns. In addition, the stock also pays dividends, which makes it an even more reasonable option.

The dividend yield of Tesco (TSCO) is also around 3.2% which is actually quite good for the UK market.

So, can Tesco (TSCO) shares deliver solid returns in 2026? Yes, it can, given Tesco's market share and how it continues to grow.

The market share of Tesco (TSCO) is at 28.2% while it was near 27.7% just a year ago. So, this alone tells us that Tesco (TSCO) is very competitive and has managed to grow its market share.

According to experts, the strategy of matching or even offering better prices than Aldi has helped Tesco to increase its market share. In 2026, this strategy is likely to help Tesco (TSCO) win more market share from the competition.

Overall, Tesco (TSCO) is a very good stock in the UK market, and it also offers a strong dividend yield. So, anyone who is looking to add a stock from the retail and supermarket sector should definitely consider the Tesco (TSCO) stock.

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