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All investments can fall as well as rise in value so you could get back less than you invest. Tesco is one of the top 10 most held stocks on the Hargreaves Lansdown Vantage platform.

However, an accounting scandal, profit warnings and dividend cuts have ensured that investors have been on something of a rollercoaster ride in recent years. View the Tesco plc factsheet. The acquisition of wholesaler Booker took many by surprise, and while this still requires shareholder and competition authority approval, the deal would represent an interesting change of tack for the group.

With this in mind, I assess the rationale behind the buy, sell and hold cases for investors. After a pretty miserable start to the decade, Tesco has managed to string together four consecutive quarters of UK like-for-like growth. The group says the dividend will be restored progressively until the payout reaches half of group earnings. Booker has a good operational record and Charles Wilson, the man who has presided over its success, is committed to staying on board.

In addition to independent grocers and convenience stores, Booker supplies thousands of pubs and restaurants up and down the country.

While Tesco may have enjoyed a succession of positive quarters on a like-for-like basis, total sales remain well down on levels.

Buying, selling and transferring - Buying and selling shares - Shareholder centre - Investors - Tesco PLC

The industry has seen relentless competitive pressures drag prices and profits down. Tesco imports a significant amount of food and other goods, so the collapse in the pound following the Brexit vote means that the group is likely to see its costs rise.

When buying from an overseas supplier, Tesco will now need to exchange more pounds to buy the same goods. The group will be doing all it can to secure the best possible deal, but with consumer goods giants like Unilever sat at the other side of the negotiating table, Tesco might find it difficult to drive a hard bargain on pricing. The high-profile dispute over the price of Marmite is an illustration of how things can turn ugly when both sides dig their heels in. With profit margins already wafer thin, and lower than Sainsbury and Morrison , the group will surely be forced to pass on the costs to the consumer by raising prices.

The Booker deal is far from straightforward, too. It looks unlikely Tesco will return to its previous levels of profitability soon. Nonetheless, following the torrid time the group has endured, the shares offer recovery potential. Indeed, we highlighted the stock as a potential recovery play last year, and so far the shares have risen The other stocks in that article neatly serve to highlight the heightened risks and rewards of recovery investing. Anglo-American is up Remember past performance is not a guide to future returns.

In many ways, not much has changed for investors who bought into the Tesco recovery story last year. Yes, Booker is a fresh variable, but with the dividend coming back, Tesco are sweetening the deal by paying investors while they wait to see if it proves a success. Read our latest research on Tesco plc.

Register for updates on Tesco. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by Thomson Reuters.

These estimates are not a reliable indicator of future performance.

Tesco shares: Leave on the shelf or worth a purchase?

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Buying, selling and transferring - Buying and selling shares - Shareholder centre - Investors - Tesco PLC

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Archived article Tax, investments and pension rules can change over time so the information below may not be current. Tesco - time to buy, sell or hold? George Salmon Equity Analyst 8 February A A A.

No recommendation No news or research item is a personal recommendation to deal. Tesco plc Ordinary 5p Sell: View factsheet Prices delayed by at least 15 minutes. Add to watchlist Create an alert. Register for Tesco plc share research updates. The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments.

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