TSE:L

Loblaw Companies Ltd (L.TO)

66.20
+1.43 (2.21%)
as of Jun 24, 2026, 8:00:00 pm Market Open.
323 watching
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Investor Insights
star iconJun 24, 2026, 12:00 am

This summary was created by AI, based on 15 opinions in the last 12 months.

Loblaw Companies Ltd. (L-T) is viewed as a defensive investment, largely regarded as the leading grocery and pharmacy retailer in Canada. Analysts appreciate its strong market presence, especially with its No Frills stores and robust private label offerings that provide better margins. The acquisition of Shoppers Drug Mart has been cited as a significant driver of profitability and growth. While there are concerns regarding high valuations and competition from giants like Walmart and Costco, most experts recognize Loblaw's strong earnings growth, technical performance, and free cash flow generation. Despite some hesitation on its current price, the general sentiment among analysts leans towards its potential as a reliable stock in uncertain market conditions.

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Consensus
Positive
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Valuation
Overvalued
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MRU
DON'T BUY
Done a fantastic job of restructuring itself.. But he wouldn’t buy it. Biggest problem is Walmart. They are building out their food print in a huge way in Canada. Would be interested at $30
COMMENT
Aug 2029 6.5%. Triple B, but he is comfortable with company. Is very leveraged to interest rates. If you think rates are going to rise, be very careful, if you think they will fall, it’s a great trade.
DON'T BUY
Consumers staple space and there is no other name in Canada that matches it size, etc. but consumer staples stocks will generally not perform that well in a recovering economy. Technically has lower lows and lower highs and has fallen below the 50 day moving average.
BUY
Looks very good to him. Model price is $45.65, an upside of 13%.
PAST TOP PICK
(A Top Pick Jan 11/10. Up 21.46%.) Sold this just under $40. Food retailing is now a very competitive environment.
DON'T BUY
Doesn’t expect any growth potential. Had been concerned with their inability to retool their supply chain regarding competition with Wal-Mart (WMT-N) and has made great progress, which has been reflected in the stock price. Doesn’t see it getting much stronger.
TOP PICK
Likes it because their turnaround is finally getting legs. Food deflation is ending and we are starting to see food inflation. Grain prices are going up and will work through the system and into retail prices. Food retailers do well during inflationary times. The industry doesn’t want a price war here.
BUY
Reasonable buy right here. There was price deflation in food. The whole group has turned out good results. Thinks we will see price inflation and this will be great for margins. There should be some price growth next year. Empire is his preference, but you can’t go wrong with either.
DON'T BUY
Just opened a stand-alone “Joe Fresh” clothing store. One store is not going to change things but some of their new formats look very interesting. His concern with food stores in general is that we are still in a price war environment and deflationary environment. Not cheap.
COMMENT
Food tends to do well in a slow economic environment. Food inflation has been coming off, which might be a challenge for them to get through. Capable management. Not cheap.
COMMENT
Would prefer this over George Weston (WN-T). Has cleaned up its act considerably. There is a lot of pressure in the entire grocery space with price wars. Would prefer Empire (EMP.A-T).
BUY
A turnaround story that is now working. Profitability is better. Distribution system, while not 100% perfect, is much better. Good management. Food deflation seems to be coming to an end, which bodes well for profitability.
TOP PICK
The street has not liked this stock all along. The turn around is in place and now the street is becoming believers. Investors like it. It hit a new high the other day. Attracting conservative investors. Earnings surprises on the upside for two reasons: Turnaround starting to show on the bottom line and the big worry on food retailers is food deflation but it is waning now.
PAST TOP PICK
(A Top Pick May 6/09. Up 8.6% excluding dividends.) Bought on it being a turnaround, which is working. Low risk because of their real estate, which will support it on the down side.
BUY
High Cdn$ has created deflation in grocery stores so he expects weaker earnings this year. Expect it will turn around and there will be food inflation again. Not a lot of competition.
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