Tesco Share Price (LON: TSCO) Open’s at Multi Year High

Tesco share price (LON: TSCO) opened trading this morning at multi-year highs of 410.40p, as Britain's largest supermarket chain continues to hold above the previous resistance of 400p. This milestone caps a period of steady, if not spectacular growth since the start of the year.

The most recent financials demonstrated that Tesco is on a strong path, with Q1 sales (UK like-for-like) up 5.1%, despite the CEO indicating the market remains ‘intensely competitive'. Maintaining the profit outlook for FY25/26 was also taken well by markets, despite the levels reflecting a mild drop from the prior year.

The company's market dominance is another vital ingredient in its success story. By the end of Q1 2025, the company held a commanding 28.5% share of the UK groceries market, up from 27.8% the previous year. This expansion reflects Tesco's effective competitive strategies and its ability to maintain its position as the go-to supermarket for a large segment of the British population.

The company's ability to adapt to changing consumer preferences and navigate the complexities of the retail landscape has been instrumental in its sustained growth.

The company's key financial metrics further support the bullish sentiment. Tesco's PE ratio stands at 17.34 (with a forward PE of 14.49), its dividend yield is a healthy 3.42%. The latest figures reveal a revenue of £69.92 billion (TTM) with 2.54% year-over-year growth and a net income of £1.63 billion (TTM) with an impressive 36.87% year-over-year growth.

Grocery price deflation, as highlighted by J.P. Morgan, are a potential risk that could squeeze margins and impact profitability. Intense competition from other supermarket chains and discounters also poses a challenge. .

With Tesco's shares having gained 29% over the past 12 months, you would now have to look back more than a decade to find the last time TSCO changed hands at these levels. A new high will no doubt be celebrated by bulls, with a firm consolidation above 400p potentially setting the company up for continuation. Re-tests of previous resistance cannot be overlooked, yet the market reaction to these could prove to be pivotal.