If I’d bought £10k worth of Tesco shares 3 months ago, here’s how much I’d have now

Tesco shares have risen significantly over the last three months. Here’s how much a £10,000 investment three months ago would be worth today.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Mature friends at a dinner party

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

When I covered Tesco (LSE: TSCO) shares in October, I said that they looked attractive. At the time, the shares had just had a big pullback and they appeared to offer some value.

Fast forward to today, and I’m kicking myself for not buying a few. Since that article, Tesco’s share price has soared. Here’s a look at how much I’d have today if I’d bought £10k worth of shares three months ago.

Created with Highcharts 11.4.3Tesco Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

22% share price gain

On 14 October, Tesco shares ended the day at 202p. So, let’s say I bought them at that price. A £10k investment would have got me 4,950 shares (ignoring trading commissions).

Should you invest £1,000 in Tesco right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Tesco made the list?

See the 6 stocks

Since then, the shares have risen to around 246p — roughly 22% higher.

This means that my £10k investment in Tesco would now be worth around £12.2k. That’s an excellent return in just three months.

It’s worth noting that I would not be eligible for the dividend that Tesco is set to pay out on 25 November (3.85p per share) if I’d bought the shares on 14 October.

That’s because the ‘ex-dividend date’ for that particular dividend payout was 13 October. This means that I needed to own the stock on 12 October to be eligible to receive that dividend.

I wouldn’t be complaining though. I’d be pretty happy with a £2.2k profit in just three months.

It pays to buy shares when the market is down

One key takeaway here, to my mind, is that it can pay to buy shares when the market is having a bit of a wobble.

Three months ago, global stock markets were experiencing some turbulence due to concerns over inflation and interest rate hikes.

At the time, the UK’s FTSE 100 index was below 7,000 points (it’s now above 7,800 points). And Tesco’s share price was depressed.

By following the advice of legendary investor Warren Buffett, and buying some shares while others were panicking, I could have generated some decent gains.

Is it too late to buy?

Do Tesco shares still offer a bargain today?

Well, at today’s share price, the forward-looking price-to-earnings (P/E) ratio here is just under 12.

At that multiple, I think the stock is pretty close to being fully valued. In other words, I wouldn’t expect to see big gains from here, unless earnings rocket higher in the years ahead (which I think is unlikely due to inflation).

I still think the shares could play a valuable role in my portfolio from a defensive perspective. The dividend yield here is currently over 4%, which is attractive.

However, I’d prefer to buy them at a slightly lower multiple in order to give myself the best chance of generating a profit.

So, I’m going to keep them on my watch list for now.

All things considered, I think there are a few other UK stocks that offer a bit more value than Tesco at the moment.

AI Revolution Awaits: Uncover Top Stock Picks for Massive Potential Gains!

Buckle up because we're about to dive headfirst into the electrifying world of AI.

Imagine this: you make a single savvy investment in some cutting-edge technology, then kick back and watch as it revolutionises entire industries and potentially even lines your pockets.

If the mere thought of riding this AI wave excites you and the prospect of massive potential returns gets your pulse racing, then you’ve got to check out this Motley Fool Share Advisor report – 'AI Front Runners: 3 Surprising Stocks Riding The AI Wave’!

And here’s the kicker – we’re giving you an exclusive peek at ONE of these top AI stock picks, absolutely free! How’s that for a bit of brilliance?

Get your free AI stock pick

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Edward Sheldon has no position in any of the shares mentioned. The Motley Fool UK has recommended Tesco Plc. 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.

We think earning passive income has never been easier

Do you like the idea of dividend income?

The prospect of investing in a company just once, then sitting back and watching as it potentially pays a dividend out over and over?

If you’re excited by the thought of regular passive income payments, as well as the potential for significant growth on your initial investment…

Then we think you’ll want to see this report inside Motley Fool Share Advisor — ‘5 Essential Stocks For Passive Income Seekers’.

What’s more, today we’re giving away one of these stock picks, absolutely free!

Get your free passive income stock pick

More on Investing Articles

The flag of the United States of America flying in front of the Capitol building
Investing Articles

10 FTSE shares falling today after President Trump’s tariffs bombshell!

Our writer explains why JD Sports Fashion from the FTSE 100 and a diverse bunch of other UK stocks are…

Read more »

Fans of Warren Buffett taking his photo
Investing Articles

With value investing back in vogue, I’m taking a leaf out of Warren Buffett’s playbook

With tariffs and trade wars resulting in heightened market volatility, Andrew Mackie takes comfort in Warren Buffett’s words of wisdom.

Read more »

Hand of person putting wood cube block with word VALUE on wooden table
Investing Articles

Around a 1-year high, is there enough value left in Next’s share price to make it worth me buying?

Next’s share price has risen a lot in eight months, but there could still be a lot of value left…

Read more »

Group of young friends toasting each other with beers in a pub
Investing Articles

OMG DYOR but IMO this ‘cool’ FTSE 100 stock offers bangin’ VFM!

Despite being one of the least trendy 50-somethings around, our writer considers how Gen Z could help push this FTSE…

Read more »

Investing Articles

2 cheap FTSE 100 and FTSE 250 growth stocks to consider as stock markets sink

I think these Footsie and FTSE 250 growth shares could be very shrewd buys to consider in the current climate.…

Read more »

Investing Articles

3 shares I’ve bought in the 2025 stock market sell-off

The stock market has experienced a lot of turbulence in recent weeks. Edward Sheldon has been taking advantage and buying…

Read more »

Investing Articles

Investors considering HSBC shares could aim for £8,453 a year in passive income from just £5 a day!

A relatively small daily investment in HSBC shares over several years can produce an extraordinary level of annual passive income…

Read more »

Investing Articles

The Rolls-Royce share price has fallen! Is this the moment investors have been waiting for?

Even the Rolls-Royce share price can't escape current stock market volatility, falling slightly over the last week. Should investors consider…

Read more »