Marx and Spencer (LSE: MKS) Actions have increased by about 20% over the past month, which makes the company one of the best results in FTSE 100 during this period.

The retailer has increased by almost 60% over the past year. According to five years, the M&S share price increased by an impressive 350%.

In this song I ask if investors should continue to consider buying M&S shares. Is there even more from this impressive return?

Strong shoots

A few years ago, Marx and Spencer seemed an unlikely choice of investment success. Falling sales, dated supplies and unprofitable stores maintained profits.

Since the CEO of Stuart Machin took control in May 2022, a lot has changed. Annual sales increased by 23% to 13.4 billion GBP, while operating profit increased by almost 50% to 864 million GBP.

Machin reduced the debt, closed unprofitable stores and led the reconstruction of Core Clothing, Home & Beauty Business. At the same time, M&S Food still puts a niche as a popular choice for buyers looking for an inexpensive update from vast supermarkets.

The company’s latest commercial update covered the last 13 weeks of 2024-the most crucial Christmas period. Total group sales increased by 5.6% to 4.1 billion GBP.

Food sales increased by 8.7%, including “Biggest day” whenever.

Meanwhile, the group of clothing, home and cosmetics achieved its largest online sales week.

Is the slowdown likely?

I think there are several good reasons to look at a more cautious view of M&S. First of all, this business is not as economical as it was.

As I write, shares trade about 13 times 2025/26 profit forecasting. A year ago, the price ratio to Marx and Spencer’s profit (P/E) was only 10.

AP/E 13 is not exorbitant for all types of activities. But M&S ​​is a vast, mature seller operating in a snail-paced British economy. Profit margins are relatively low.

The boost over the past few years has been increased by operational improvements. Because many of these changes are currently completed, I’m not sure if the last growth rates will be balanced. The slowdown in growth can exert pressure on the valuation of the action.

There is also a risk that recent problems can hit business. On April 22, M&S revealed that his store operations were affected by a recent cyber attack. According to some press reports, click and collection services have been disturbed.

The company did not reveal any details about the attack. But such events can be exorbitant and spend some time.

M&S shares: Buy or avoid?

All investments have some risk. But I think there are several good reasons to remain positive about Marx & Spencer. This company has a huge trace in British detail and operates much more competitive than a few years ago.

Online growth is also positive. Many buyers expect a trouble -free mixture of retail sales in a store and online, and M&S is well prepared.

Meanwhile, M&S food business could do well, even during a recession, because buyers buy treats to eat at home instead of food.

In general, I think that M&S ​​is still worth considering as an possible investment.