According to Stockopedia, TSCO (Tesco) has a Value score of 96, Quality of 86, and an RSI of 22%. TSCO has a QV (Quality-Value composite rank) of 98.
Dare I say it, but Tesco fits the bill, at least mechanically, of being “good and cheap”, and massively oversold.
Tesco shares, as have supermarkets in general, been an investing disaster over the last five years. Tesco has slumped 31%, whilst the Footsie has gained 52%. Mid-caps have done even better, having gained 103%.
Everyone can reel off a list of reasons not to buy into the
supermarkets right now, including: toppiness of the stock
market, cut-throat competition amongst the giants, encroaching competition from Alda/Lidl, 10 year low share price, likely
kitchen-sinking in the next set of results, consumer rebellion against dubious promotional ploys, and a vulnerable dividend.
Let’s see if Tesco can bounce from here. I am predicting that it will. I am not a holder, though.
Share price 253.6p. Footsie 6679.