When Marx and Spencer (LSE: MKS) fell from the stock exchange FTSE100 in September 2019, it felt like the end of an era. By then I had stopped writing about stocks. I loved his food halls as much as everyone else. But I lost patience with the clothing arm, which never managed to regain its lost glory. Unfortunately, this meant missing out on one of the most dramatic bounces in the UK market.

In five years, the Marks & Spencer share price has risen 182%, putting it back on the FTSE 100. Much of this turnaround is down to CEO Stuart Machin. He took over in 2022 after previously heading food. During his reign, M&S increased its focus, improved its product range, tightened costs and restored credibility with investors.

Its revitalized food business continues to gain market share, and its apparel and home businesses have also improved significantly. The group reduced costs and closed unprofitable plants. It has also made significant investments in data and Internet capabilities and moved forward in logistics automation.

The return of the top FTSE shares

Last year’s cyber attack is expected to wipe out around £300 million from the company’s operating profits in 2025/26. However, the stock is still up a modest 13% for the year. This is thanks to the escalate in dynamics that took place in the last month. In February they increased by 9.8%, which would replace PLN 10,000. pounds in 10,980 pounds. Not bad for a few weeks of work.

Food retailers generally had a good month. Tesco shares rose 16% and Sainsbury’s increased by 8%, driven by reduced food price inflation. This gave buyers a little more breathing room and also supported margins.

This followed a mighty Christmas, with comparable food sales rising 5.6% in the 13 weeks to December 27 to reach £2.72 billion. It is a 50:50 joint venture with Okado Retail is flying. Sales increased by 13.7% over the period, with M&S own brand sales on the platform growing even faster.

Low performance, good pricing

Management is investing heavily in its future by modernizing its food supply chain, continuing its store renewal program and planning hundreds of recent or refurbished grocery stores under the Simply Food banner. The valuation doesn’t look stretched, with a price-to-earnings ratio of 12.5.

However, buyers are still struggling. Higher employer contributions to Social Security and two inflation-suppressing minimum wage increases have pushed up costs, reducing margins. Net debt has increased in recent months, although it remains moderate after excluding lease liabilities.

So where will the stock go next? Analyst forecasts give a consensus one-year price target of 430p. If true, that would mean an escalate from today of just 9%, plus a potential yield of 1.1%. This suggests a potential total return of just over 10%, which is quite paltry. Of course, you can’t rely on forecasts, and many of them will precede the February escalate in share prices.

M&S has had a great run and some may be tempted. However, I believe I can find more electrifying growth stories in the FTSE 100 today, as well as much juicier returns.