Investors with an interest in Retail - Supermarkets stocks have likely encountered both Tesco PLC (TSCDY) and Walmart (WMT). But which of these two stocks is more attractive to value investors?
Tesco PLC (LSE:TSCO) chose not to raise its full-year profit and cash flow guidance despite delivering a strong Christmas trading period, a decision Shore Capital views as reflecting the retailer's focus on long-term investment rather than short-term upgrades. While group sales rose by 3.1% for the 19 weeks to January 4, CEO Ken Murphy emphasised the importance of maintaining value and quality for customers in a challenging consumer environment.
Tesco PLC (LSE:TSCO) said its full-year profit and cashflow targets remained unchanged after a record level of Christmas sales. Like-for-like sales swelled 3.8% for the UK's largest supermarket group, as demand grew in the six weeks to January in the UK, Ireland, Central Europe and for its Booker wholesale arm.
Tesco , Britain's biggest supermarket group, kept its full-year profit outlook on Thursday as it reported a 4.1% rise in underlying UK sales for the key Christmas trading period, winning market share from rivals.
Britain's largest retailers including clothes group Next and supermarkets Tesco , Sainsbury's and Lidl were the big winners at Christmas, ahead of what is set to be a tough 2025 marked by spending restraint and tax rises.
Britain's biggest supermarket group Tesco and No. 2 Sainsbury's were the winners among British food retailers at Christmas, posting sales growth of 5% and 3.5% respectively, according to industry data published on Tuesday.
Investors will not have long to wait to hear how retailers fared over the vital Christmas trading period as a string of retailers line up to offer updates this week. Next PLC (LSE:NXT), Marks and Spencer Group PLC (LSE:MKS), Tesco PLC (LSE:TSCO), J Sainsbury PLC (LSE:SBRY) and B&M European Value Retail SA (LSE:BME) are all due to report over the coming days, alongside other industry players Hilton Foods Group PLC and Greggs PLC (LSE:GRG).
Tesco PLC (LSE:TSCO) will be looking to solidify its dominance over the grocery market in a third-quarter vital Christmas period update next Thursday, January 9. Early signals from discounters Lidl and Aldi have pointed to solid festive trading for grocery retailers so far, with each flagging 3.4% and 7.0% sales growth for December respectively.
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Tesco (TSCDY) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
Investors looking for stocks in the Retail - Supermarkets sector might want to consider either Tesco PLC (TSCDY) or Wal-Mart de Mexico SAB de CV (WMMVY). But which of these two companies is the best option for those looking for undervalued stocks?
A spot of financial housekeeping over at Tesco PLC (LSE:TSCO) serves to highlight Britain's biggest grocery chain's “strong asset backed balance sheet, low non-lease indebtedness and strong cash flows from operations”, said Shore Capital Markets' retail expert Clive Black. The housekeeping at hand is Tesco's repurchase and cancellation of €38 million in bonds issued in 2007.