Increasing by 80.85% YoY, Sainsbury’s stock is expected to explode amid a bidding frenzy that gobbled up two of the U.K.’s Big Four supermarkets.
All eyes are now on Sainsbury’s as its share price hit the highest level in about seven years. If you want to know everything about the UK’s second-largest retailer, you are in the right place.
First, let’s find out where you can buy Sainsbury’s stock right now. Then, we will have a closer look at Sainsbury’s and how it managed to soar to the top of the FTSE100 leaderboard in only one day.
How & Where to Buy Sainsbury’s Stock Online
Sainsbury (SBRY) stock is available for purchase if you sign up with an online broker that provides access to its equity. To help you save time, we have picked two of the best online brokers right now:
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What Is Sainsbury’s?
Sainsbury’s is one of the Big Four supermarkets in the U.K., along with Asda, Morrisons, and Tesco. It is the second-largest chain with a market share of 16%.
Should I Buy Sainsbury’s Today?
Currently, the UK supermarkets go through a bidding frenzy. Asda was bought last year, while Morrisons accepted its takeover deal last week. If Sainsbury’s would accept the takeover deal, it means that three out of the Big Four supermarkets in the UK will be owned by private equity companies.
With a market capitalisation of around £7.93 billion and more than £7 billion in assets, many believe that Sainsbury’s is currently undervalued. The company also owns Argos, which is thought to be a long-term growth driver, while cash flows are as reliable as they can be. This being said, it is not surprising that Sainsbury’s stock price has soared this year, reaching an 80.85% increase YoY and the highest since 2014.
Based on the recent news that the US equity firm, Apollo, is taking a closer look at Sainsbury’s, there might be hope that its share price is to explode over the next weeks.
However, if I were to buy Sainsbury’s right now, I would be very mindful of the risks. Its stock is one of the most shorted stocks on the LSE right now – in other words, many traders bet that the stock is about to plummet. If the opposite happens, leading to a short squeeze, it could work in investors’ favour.
Sainsbury’s Price Prediction 2021
Although the future remains uncertain, many are quite optimistic, suggesting 323.5 GBX as the lowest price and 365.22 GBX upside.