TSE:L

Loblaw Companies Ltd (L.TO)

65.81
+0.11 (0.17%)
as of Jul 31, 2026, 8:00:00 pm Market Open.
322 watching
0
Investor Insights
star iconAug 3, 2026, 12:00 am

This summary was created by AI, based on 13 opinions in the last 12 months.

Loblaw Companies Ltd, the largest food and drug retailer in Canada, has garnered mixed reviews from analysts, with many acknowledging its defensive nature and solid market position. Experts appreciate the growth after the acquisition of Shoppers Drug Mart, contributing to strong profitability and free cash flow. The company faces challenges from growing competition, particularly from Walmart and Costco, but its private label offerings have proven resilient during inflationary periods. While some analysts highlight the current high valuation and express concerns over sustainability, the overall sentiment suggests it remains a core defensive portfolio choice amid economic uncertainty.

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Consensus
Mixed
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Valuation
Overvalued
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Similar
C0stco, COST
DON'T BUY
Likes it as a company but not as a stock because of valuation. It is a turnaround company and market is making you pay for part of that. Prefers MRU.A where you don’t have the operations problems to be resolved.
HOLD
Has not been a particularly great stock over the last couple of years and there are better places to be in the Canadian retail side.
SELL
Likes this company and feels they’re over the hump and over their problems. Would Sell and buy Empire (EMP.A-T) instead. (See Top Picks.)
BUY
Adding to his accounts in the $30-$32 range. Could get to $40 in the next few years. Attractive valuation.
PAST TOP PICK

(Top Pick May 16/08. Up 2.42%.) Did very well during the bear phase but is not doing well during the bull phase.

PAST TOP PICK
(A Top Pick Nov 26/08. Up 9.03%.) Was stopped out on a pullback in the spring. Still a Buy along with its sister company George Weston (WN-T). Very defensive stocks.
PAST TOP PICK
(A Top Pick July 3/09. Down 6.45%.) Making a number of positive adjustments in their operations and marketing.
DON'T BUY
Fairly fully valued. Last couple of quarters were better. $35 per share value in real estate. Would prefer George Weston (WN-T), which gives you this company and a chance of them doing something well for free.
TOP PICK
4.85% bond maturing May 8/14. High BBB yielding about 150 basis points over Canada. #1 grocer in Canada and are working very hard to maintain that position. Have a great platform to work from.
BUY
When the economy was collapsing, companies like this did well as people viewed food stores as a safe haven. When the market took off in March based companies got left. Reported a good quarter and expect the next one will also be good.
TOP PICK
Benefiting from food price inflation that is driving their margins. Instilled several operational efficiencies to reduce shrink to improve vendor relationships. Renovating 300 stores. Canada's premier discount brand. Trading at a discount to its peers.
WATCH
Technicals are quite encouraging. It has established an upward trend but recently has had difficulties getting above resistance. Short-term momentum indicators have rolled over. His suggestion would be to try to Sell when it gets close to its recent high of $37.50. Seasonality is from around the end of October and through until April.
PAST TOP PICK
(A Top Pick Nov 26/08. Up 16%.) Got stopped out in March with a small profit. Would probably Buy it back in the $32-$34 area. Defensive stock so if you want to get defensive this summer this is a good place to be. Right now you want stocks that can run up faster.
BUY
Just did a bond issue that was massively oversubscribed. Not a strong credit, but credit worthy. If you are doing corporate bonds, buy a number of them and spread your risk around.
TOP PICK
It has seen the worst, is bottoming and is starting to do better. The soft economy benefits supermarkets. Long-term hold.
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