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TSE:L

Loblaw Companies Ltd (L.TO)

60.53
-0.44 (0.72%)
as of Aug 21, 2026, 8:00:00 pm Market Open.
322 watching
0
Investor Insights
star iconAug 23, 2026, 12:00 am

This summary was created by AI, based on 11 opinions in the last 12 months.

Loblaw Companies Ltd, a leading food and drug retailer in Canada, has experienced significant growth, especially following its acquisition of Shoppers Drug Mart. Experts note its strong performance amid food inflation, and the success of its No Frills discount brand has drawn positive attention. However, concerns about overvaluation are prevalent, with many analysts watching for signs of sustainable growth, especially with increasing competition from Walmart and Costco. While some view the company as a solid defensive investment, others are cautious, indicating that current valuations appear stretched compared to historical standards. Analysts provide mixed views on its future performance, recommending investors consider alternatives in the retail space.

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Consensus
Cautious
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Valuation
Overvalued
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ATD
BUY
Earnings have been quite disappointing. Looking at this one currently. Extremely well managed. Management is making long-term strategic changes so that the company will be able to face whatever comes their way for the next 5/10 years.
SELL
The profitability for Loblaw’s (L-T) and Weston’s (WN-T) is deteriorating pretty quickly. Sees declining margins.
WATCH
The premiere food retailer in Canada and probably the best in North America. The problems are 1) the ever increasing presence of Wal-Mart (WMT-N) and 2) they have moved more and more into general merchandise which has given them logistic problems in their distributions. Until this is solved, the stock could continue to drop.
TOP PICK
This is a business that is going through a transition. The drop in price is an opportunity to accumulate. They will be a stronger, tougher, lower-cost competitor going forward.
DON'T BUY
Has been very negative. Has broke down. There has been a lot of selling pressure on this one. The stock failed to find support at its '04 low, so the next level of support is in '03. Currently below its 200 day moving average.
BUY
Thinks that the problems are transitory as the company is organizing its supply chain. This is a great opportunity to buy a very well managed business at a very reasonable price. Could be 2, 3 or 4 quarteres before seing any improvement.
TOP PICK
Feels they are functioning on the long rather than the immediate stock price. They've cut their expenses, taken some restructuring hits, let their margins deteriorate in order to keep market share, On the other hand, they keep adding product categories. They're now the 3rd largest drug store in Canada, 3rd largest retailer of children's clothing.
DON'T BUY
Earnings are coming down. Wouldn't touch. His model price has been deteriorating along with the stock price.
BUY ON WEAKNESS

Just reported a weak quarter. Earnings were down. Having distribution problems as they switch over to Great Canadian Super stores. Their margins are still the best by far. Feels there's another tough quarter coming, but they are good operators and will eventually get it fixed. Has been buiying on weakness.

BUY
Had a beating when you consider it the iconic Canadian grocery store and has such a demanding and overwhelming presence in the big retail sector in Canada. Largely a result of squeezed margins which was needed to scare off competition. A must own.
DON'T BUY
Looking at the sector, the US food retailers are having a difficult time, even against the retailing group.
DON'T BUY
The top food retailer in Canada. Its problem is Wal-Mart (WMT-N) and Costco (COST-Q). As Wal-Mart and Costco continues to increase their food offerings, they are gaining market share from the super market chains. Same store sales have slowed way down.
DON'T BUY
Dropping because its earnings estimates are dropping. He has a negative revision score and his model price is $68 which is a 4% differential, but the model price keeps going down because the earnings keep on going down.
BUY
An excellent company. Has had a very difficult October. There is some concern that they are having some distribution problems in its move to a new head office and distribution centre. Views this as short term. A strong operator.
BUY
An excellent company long term. Good dividend yield. It's facing competition, but well positioned to fight it off. A core holding in a portfolio.
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