The Motley Fool

Britain’s Rise From The Ashes Makes Me Want To Buy Tesco PLC

Tesco (LSE: TSCO) (NASDAQOTH: TSCDY) is a stock that I love investing in. For me, it offers a fantastic long-term play on the UK economy, where recent data has pointed towards a considerable improvement in fortunes.

Indeed, services activity in the UK recently hit a six-year high, with the purchasing managers’ index of 700 services companies rising to 60.5 for August. This was not only higher than July’s figure of 60.2, but went against market forecasts that the figure would fall in August.

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...

The figure is well above the crucial 50 mark that separates contraction from expansion, and is now at its highest level since December 2006.

So, suffice to say, prospects for the UK economy look better than I can remember for a very long time.

Although this is good news for everyone, as a private investor I want to take advantage of this positive news. So, what better way to benefit than invest in the retailer where one-eighth of all UK retail spend is made? That company is Tesco.

Indeed, a renewed focus in the UK following the announcement to sell Fresh & Easy in the US has seen the company play catch-up with rivals such as Sainsbury’s. Tesco has produced a very similar marketing campaign to Sainsbury’s, with its brand match being almost identical except that it includes own brand products as well, while Sainsbury’s campaign is only for branded goods.

In my view, this gives Tesco a substantial edge in the value segment, as customers know that they are not losing out versus other supermarkets on all of their shopping. It also means that Tesco is competing more on price, with the campaign seemingly ignoring the difference in quality between Tesco and Sainsbury own-brands. This is a battle that Tesco, with its highly efficient supply chain and huge purchasing power, is likely to win in the long run.

Furthermore, Tesco offers a yield of 3.9%. This not only beats the best savings accounts the high-street banks can offer, but also provides a real income (after inflation is taken into account).

So, with a strong marketing campaign, a large exposure to the UK where the recovery seems to be taking hold and a strong yield, Tesco remains one of my favourite shares to invest in.

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...

It’s just ONE innovation from a little-known US company that has quietly spent years preparing for this exact moment…

But you need to get in before the crowd catches onto this ‘sleeping giant’.

Click here to learn more.

> Both Peter and The Motley Fool own shares in Tesco.

Our 6 'Best Buys Now' Shares

The renowned 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.

Simply enter your email address below to discover how you can take advantage of this.

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.