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.

consensus icon
Consensus
Mixed
valuation icon
Valuation
Overvalued
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Similar
C0stco, COST
DON'T BUY
He is playing this through the George Weston (WN-T) preferred shares. Loblaws is a classic value trap. Low margin business. Having trouble with the volume traffic in their stores. Wal-Mart (WMT-N) is pushing hard on costs.
BUY
Still early days for a turnaround. It has taken much longer than he would have thought. There are challenges from all fronts. $45 is a good level but you will have to be patient.
DON'T BUY
Do not buy stocks on the way down, as you can't tell when a low has been reached. Distribution centres still aren't fixed. Biggest issue with these companies, besides Wal-Mart, are rising food costs that will cut into margins.
HOLD
Not yet.
DON'T BUY
Still a bit more downside to come. They are going through a tough period. Think they have the right steps in place to make a recovery, but it takes time to turn a large ship like this around.
DON'T BUY
He has a model price of $46.92 giving it a positive 5% differential. The model price has been steadily falling. (In Feb/07 it was $55.)
COMMENT
Numbers just released were pretty good. Starting to get on track. Not out of the woods. Have a lot of brand equity in the President's Choice, location, real estate, etc.
SELL
Wait and see until they actually produce 2 quarters in a row of good earnings. A “ show me” story.
DON'T BUY
Loblaws (L-T) vs George Weston (WN-T). A lot of people are still pretty soured. No one is certain when the turnaround will come.
DON'T BUY
Wrote off goodwill. His model price is $50.86, which is basically a 2% positive differential. However, the model price has been eroding. More write-offs are required and they need a turnaround in earnings.
COMMENT
A great fan of this company, however PE ratio and forward earnings is about 19 X. Doesn't think it's worth this multiple. Would prefer at $5 less.
BUY
Sales growth in the latest quarter was up 4%, store by store. Things are starting to turn around.
DON'T BUY
Same-store sales were a little bit better on their recent reporting. Doesn't mean they are out of the woods yet. Far too early to know if they're going to be successful.
WATCH
Trying to gear up for the competition with Wal-Mart. This has upset the applecart. Not sure if they are on the right track. Need to get back to their fundamentals.
HOLD
A great franchise but unfortunately it went off the rails, partly internal and partly from threats of Wal-Mart competition. Think the threats have been overblown. Once the price pressures abate, could be a great buy.
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