FTSE 100 watch: why I’m not bowled over by the cheap Tesco share price!
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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. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. There are still plenty of top-quality FTSE 100 shares trading to cheaply following the 2020 stock market crash. However, I won’t be investing in Tesco (LSE: TSCO), despite its cheap share price.The UK’s biggest supermarket has two significant feathers in its cap in these uncertain times. Food retailing is just about one of the most robust sectors when the broader economy struggles. And this particular UK supermarket share sits at the top of the tree with a whopping 27.3% take of the British market (according to Kantar Worldpanel).5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…This FTSE 100 operator is also thriving thanks to its extensive online shopping operations. Tesco delivered a staggering 7m grocery orders over the Christmas period alone. As anyone who’s tried to book a delivery slot with Tesco knows, demand for its Internet-based services remains rock-solid as Covid-19 lockdowns remain in place.I think it’s probable that this UK share’s e-commerce proposition will keep going from strength to strength too. Sales at Tesco.com will benefit from the broader rise in Internet shopping activity from both new and existing users, I reckon. And the grocery sector in particular has plenty of room for growth. Kantar says that online now makes up for just 12% of all grocery sales.Tesco’s competition concernsSo why on earth won’t I be investing in Tesco, you ask? Well the small matter of increasingly bloody competition makes me worry about the FTSE 100 firm’s profits. The soaring popularity of German discounters Aldi and Lidl have put huge strain on the established operators’s wafer-thin margins. And things threaten to get worse as the low-cost disruptors expand their operations.Take Lidl, for example. It saw sales rocket 17.9% in the four weeks to 27 December, sprinting past the festive performances of Britain’s so-called Big 4 supermarkets. Lidl now has 800 supermarkets running the length and breadth of the country. And it plans to have 1,000 shops running by 2023 to claim even more share from Tesco et al.Why I’d buy other FTSE 100 sharesTesco doesn’t just have to worry about losing customers to the Germans’ growing store networks, either. The FTSE 100 firm also faces the prospect of intensifying competition in its high-growth e-commerce business too.Aldi has launched click-and-collect across hundreds of its UK stores, for example. This follows on from the sale of food parcels through its website during the first Covid-19 lockdown back in April. And of course Tesco faces a huge threat from US Internet giant Amazon which has invested huge sums in its global grocery operations in recent years.City analysts reckon Tesco’s earnings will rocket 61% year on year in the upcoming financial year (to February 2022). This leaves the UK share trading on a rock-bottom forward price-to-earnings growth (PEG) ratio of 0.2. But I won’t be buying as I said above. To my mind those soaring competitive pressures make the FTSE 100 supermarket a risk too far. Are you on the lookout for UK growth stocks?If so, get this FREE no-strings report now.While it’s available: you’ll discover what we think is a top growth stock for the decade ahead.And the performance of this company really is stunning.In 2019, it returned £150million to shareholders through buybacks and dividends.We believe its financial position is about as solid as anything we’ve seen.Since 2016, annual revenues increased 31%In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259Operating cash flow is up 47%. (Even its operating margins are rising every year!)Quite simply, we believe it’s a fantastic Foolish growth pick.What’s more, it deserves your attention today.So please don’t wait another moment. Simply click below to discover how you can take advantage of this. FTSE 100 watch: why I’m not bowled over by the cheap Tesco share price! Our 6 ‘Best Buys Now’ Shares Enter Your Email Address Image source: Getty Images. 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