Tesco PLC AI Price Prediction

With a PE ratio of 21.54 and EPS of 0.26, Tesco is priced at a moderate earnings multiple that suggests investors expect steady, but not explosive, growth. The valuation is neither deeply discounted nor clearly stretched, implying the market views Tesco as a stable, mature business with relatively predictable cash flows. Profitability appears adequate but not exceptional, consistent with a large incumbent in a low-margin grocery sector.

• A PE ratio of 21.54 on EPS of 0.26 indicates the market is willing to pay a modest premium for Tesco’s earnings, reflecting expectations of stability rather than high growth.
• The earnings profile implied by EPS is consistent with a mature, cash-generative retailer operating in a structurally low-margin industry.
• Nothing in the current valuation metrics alone signals a clear mispricing; they point to a balanced risk‑reward, supporting a neutral stance on fundamentals absent more detailed financial statements.

Alternative data for Tesco is broadly stable with modest positive signals in hiring and a large, steady digital footprint. Job openings up 3.3% month over month suggest incremental investment in operations or growth initiatives, while app downloads remain very high but flat, pointing to a mature, well-penetrated customer base rather than accelerating adoption. Social media followings are large and mostly stable, with only minor declines on Twitter/X and negligible growth elsewhere, indicating brand reach is strong but not expanding rapidly.

• App downloads at an estimated 209,000 per day with 0.0% month-over-month growth indicate a high but plateaued level of digital engagement, consistent with a mature customer base.
• 657 job openings, up 3.3% month over month, point to modest expansion or reinvestment in the business, a mildly positive operational signal.
• Web traffic of roughly 239,764 monthly visitors and multi-million scale social media audiences (notably 2.64M on Facebook and ~900k on LinkedIn) are large but largely flat, suggesting sustained brand strength without clear evidence of accelerating demand.

Overall, Tesco’s stock setup appears neutral with a tilt toward constructive technicals but only steady, mature-business signals from fundamentals and alternative data. The recent price strength above the 200-day moving average and non-stretched RSI are supportive, yet valuation and alternative data point more to stability than strong growth. Without clearer evidence of accelerating earnings or demand, the balance of signals suggests a neutral outlook rather than a distinctly bullish or bearish stance.

• Technical indicators are supportive, with price momentum positive and the stock trading above its 200-day moving average without signs of overbought conditions.
• Fundamental and alternative data signals point to a stable, mature business with modest growth expectations rather than a clear inflection in performance.