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first_img Our 6 ‘Best Buys Now’ Shares Tesco shares – are they a great buy for value investors right now? I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. “This Stock Could Be Like Buying Amazon in 1997” Enter Your Email Address Simply click below to discover how you can take advantage of this. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.center_img Anna Sokolidou has no position in any of the companies mentioned in this article. The Motley Fool UK has recommended Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Tesco shares, it seems, enjoy the status of a safe haven. The supermarket chain sells groceries and other essentials. But are the shares a buy right now?  High supermarket salesAs we all know, in the beginning of the Covid-19 crisis many people panic-bought essentials. This led to a dramatic rise in many supermarkets’ sales revenues. Tesco also benefitted from this stockpiling, and its sales grew by 12.7%. However, some analysts argue that the pandemic also led to a large boost in online shopping at the expense of traditional supermarkets. Ocado‘s sales, for example, increased by a hefty 32.5%. On the other hand, many traditional supermarkets launched food delivery services. In this way traditional supermarkets are able to compete with pure online supermarkets. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Although the coronavirus-related rise in online shopping might seem like a one-off or a non-recurring event, I don’t think it is. It’s logical to think that many people will resume traditional shopping after the end of the pandemic. But some will continue ordering groceries and other essentials online for the sake of convenience. I also see another reason for high volumes of online deliveries in the near future. The second wave of Covid-19 is already there. Even though some analysts don’t think it will lead to the second lockdown, many consumers will still prefer to continue shopping online. Tesco’s competitive positionWhat does it mean for Tesco shares? Well, the supermarket will probably adapt to the new reality. It offers food delivery services, although it cannot meet all the consumer demand right now. According to its website, the time slots for online deliveries fill up very quickly. But I see that there is a lot of potential for Tesco to improve and grow its online shopping unit. Tesco is by far the largest supermarket chain in the UK, which a market share of about 27%. Its size is a great competitive advantage. Tesco’s rival, large discounter Aldi, has 7.7% market share in the UK, taking second place in the country.  Tesco lost some of its customers to Aldi during the great recession of 2008–09 because of Aldi’s low pricing. Tesco must be concerned about something similar happening now. The supermarket chain has asked its suppliers, including some famous brands, to match their pricing to that of Aldi. Tesco itself will also have to reduce its profit margins.Although this strategy might be devastating for Tesco and its suppliers, it will also be painful for Aldi. In fact, Aldi might lose that price war. Even if it doesn’t, Tesco will, at least, avoid losing its market share to the discounter. Tesco reports its earnings tomorrow, so, we shall see how the Covid-19 has really affected its revenue and profit.   Here’s what I’d doThe supermarket’s valuation isn’t high. It’s trading at a price-to-earnings ratio of about 17. At the time of writing, Tesco’s shares traded at 225p per share, whereas the stock’s 52-week trading range is 203.70p to 260.40p. It seems to me that there is potential for growth. Although Tesco’s competitors and the price war make the future look uncertain, the supermarket is rather a safe haven now.  Image source: Getty Images Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Anna Sokolidou | Thursday, 25th June, 2020 | More on: OCDO TSCO See all posts by Anna Sokolidoulast_img read more

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