TSE:L

Loblaw Companies Ltd (L.TO)

61.28
-0.18 (0.29%)
as of Sep 11, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconSep 13, 2026, 12:00 am

This summary was created by AI, based on 10 opinions in the last 12 months.

Loblaw Companies Ltd is recognized as a dominant player in the Canadian grocery and pharmacy sector, benefiting from strong brand loyalty and private label offerings. Despite its robust performance, experts express concerns regarding its valuation, with some calling for caution due to the perception of shrinking growth potential and increased competition from retailers like Walmart and Costco. While some analysts view Loblaw as a defensive investment that could provide stability in uncertain economic times, others critique its recent price surges and suggest trimming positions. The company's acquisition of Shoppers Drug Mart is praised for unlocking profitability, though comparisons with ATD highlight some hesitancy among investors. Overall, while Loblaw has shown resilience amid food inflation, market sentiment varies, indicating mixed outlooks on its future performance.

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Consensus
Mixed
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Valuation
Overvalued
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ATD
DON'T BUY
Looking very cheap on an asset basis. Real estate is valued at over the current stock price at about $30 a share. The problem is, there is no confidence yet that they have been able to turn earnings and get control of their environment. Given the margin pressures it is facing, it is too early.
TOP PICK
This is not a “current earnings” story. Currently trading at around the value of its real estate holdings. Looking for 1 of 3 things. 1.) Will turn around in the next year or two, probably starting later this year. 2.) The Weston family takes it private through George Weston (WN-T). 3.) Sells the company. Downside is limited, but the upside, even though it takes a year or so, will move very fast.
DON'T BUY
You lost half your money in the biggest supermarket chain in Canada in the last 5 years. That is a staggeringly bad track record. You have to think at some stage, if they just do a little bit better, the stock price could go up quite a bit. You really have to wait and see that the execution is actually there.
SELL
(Market Call Minute.) There are no redeeming features here and no increase coming anytime soon.
BUY
Going through a transition because it has Wal-Mart breathing down its neck. Messed up with its superstores and how they set the distributions to them. They are addressing this but it will take time. Has a huge real estate portfolio, which is equivalent to what the stock is trading at.
TOP PICK
Has been a terrible stock for the last few years and deserved it. Messed up on distribution. Stock price has come down to such a point that it is trading around the value of their real estate and you are getting the stores for nothing. Thinks it has a chance to turn around. If not, George Weston (WN-T) has the ability to sell it or take it private. Downside is already mostly in the stock.
DON'T BUY
Didn't get their inventory right and the grocery segment is getting a lot more competitive. Would still be concerned. You pay 14X earnings, which is expensive.
DON'T BUY
Thinks the issues with this company goes deeper. They where the prime player in the grocery business, but their competition got better. Their expansion was done in an erratic way. Has not gotten really cheap.
COMMENT
Has probably hit a bottom in here, particularly when you look at some of the other consumer staples companies. Looking at Westons (WN-T), which owns 62%, as the preferred way to play this. The dividend is also better.
SELL
(Market Call Minute.) They need to turn it around and there is no sign they can do it with Joe.
DON'T BUY
With the Wal-Mart superstores coming in, they have internal problems. Too early to buy the stock. Would want to see that they had fixed the problems.
BUY
(Market Call Minute.) You're probably okay, but do not let it make a 52-low.
TOP PICK
Has done everything wrong for the last 3 years. Tried to out- Wal-Mart Wal-Mart, which can't be done. Messed up on distributions. Changed management to someone untried. Stock has been knocked down so cheap it is trading at or below real estate value, so you are getting the operations virtually for nothing. Thinks they will start to get their act together. Downside risk is very low. Good long-term play.
DON'T BUY
Stock is down because they are having problems running their business. Thanks the dividend is safe, but with the squeeze on profits you have to wonder. You are still a little ways away from seeing if they have actually fixed their problems. Probably suffering from some tax law suffering as well so wouldn't be too bad to pick it up but you need a lot of patience.
SELL
When a growth stock runs into difficulty, the difference from what a growth investor will pay and where a value investor comes in, can be a big difference. Doesn't think the company knows how long it will take to solve their problem. They have competition and distribution problems still.
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