Loblaw Companies Ltd (L.TO) Buy, Sell or Hold

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Loblaw Companies Ltd (L.TO)

62.80

+1.18 (1.91%)

as of Jun 3, 2026, 8:00:00 pm Market Open.

321 watching

Investor Insights

Jun 3, 2026, 12:00 am

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

Loblaw Companies Ltd is the largest food and drug retailer in Canada, benefiting from its dominant market position, especially through strong private labels like No Name and the successful acquisition of Shoppers Drug Mart (SDM). The company has shown resilience amid inflation and rising costs, which have led to an increase in food prices, yet its focus on discount banners is resonating well with consumers seeking value. Analysts believe there's strong growth potential, particularly due to SDM's market share in pharmaceuticals and grocery. However, some experts caution that the stock is reaching its highest valuations in years, presenting a potential issue for future growth sustainability. While the technical aspects of the stock are favorable, there are concerns regarding competition from giants like Walmart and Costco, impacting its attractiveness at this valuation level.

Consensus

Cautious

Valuation

Overvalued

Similar

Costco, COST

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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK

(A Top Pick Jan 31/23, Down 2%)Stockchase Research Editor: Michael O’Reilly

Our PAST TOP PICK with L is progressing well. To remain disciplined, we recommend trailing up the stop (from $105) to $115 at this time.

DON'T BUY

Low profitability, balance sheet stretched. A more expensive multiple than the market, so avoid. Instead, try NWC at 13x and a bigger yield at 4.5%.

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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK

Stockchase Research Editor: Michael O'Reilly

If you can't beat 'em, join 'em. Rising grocery costs have impacted everyone and there appears to be no clear end in sight. L has been increasing cash reserves, retiring debt and buying back shares. The company will remove private label price caps effective today, so expect further cash flow increases. It trades at 19x earnings, supports a 19% ROE and its dividend payout ratio is under 25% of cash flow. We recommend placing a stop-loss at $105, looking to achieve $140 -- upside potential of 17%. Yield 1.3%

(Analysts’ price target is $136.06)

WEAK BUY

More interested in this than a WMT. He's positive on Canadian growth. Through immigration, Canada will be a shining star. Loblaw has some of the best real estate. He's sticking with COST.

BUY ON WEAKNESS

Allan Tong’s Discover Picks L stock has beaten its last four quarters and currently trades below 20x PE as it pays a 1.29% dividend yield based on a safe 24.21% payout ratio. Performance is consistent and should continue in the future. The problem with L-T, though, is that shares have run up, breaking the $118 level and currently touching new highs at $125. Buy on a pullback. Read Steady Eddys: 3 Stable Stocks for our full analysis.

BUY

Considering inflation A past pick. They cater to customer needs, not their wants (that was the pandemic age), especially with high inflation and a slowing economy. There is a consumer trade-down theme in North America, so No Frills and discount grocers will benefit. They also have a great private label program and pharmacy operation. They manage costs and wages well.

HOLD

Doing very well, based on food inflation. People have been shopping more downscale, and Loblaw has more exposure to discount chains than competitors. Inflationary pressures. Defensive place to be. He wouldn't be selling in the hopes of a pullback.

TOP PICK

Customer needs, not wants. Wants should have been satisfied during the pandemic. Now budgets are getting tight, inflation is biting. #1 grocer in the country, 27% market share. For the pending frugality, leading footprint of discount banners. Private label program is better than key rivals. Dominant pharmacy is faster grower than grocery. Merchandising sophistication. Consistent performer in down markets. Yield is 1.37%. (Analysts’ price target is $120.09)

PARTIAL SELL

Grocers benefit from food price inflation, but only up to a point. Owns discount businesses. Buying back shares, which has contributed to EPS growth. Awfully expensive, take profits, as it should revert to the mean.

PAST TOP PICK

(A Top Pick Apr 08/21, Up 68%) A pandemic stock. Spectacular numbers, strong underlying margins. A leader, despite upcoming cost pressures. Trades at a discount to MRU. Still likes it, but ran its course for him. Cost inflation helps them. Shoppers has done well.

WAIT

Might be ahead of itself. Grocery inflation is helping. Pricing erosion to Shoppers Drug Mart. Trades at 16x, growth of 12%. If inflation abates over the next 2 years, excitement's already baked into the stock. Don't add here, wait for a much lower level.

HOLD

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Primarily a hiding place for investors currently. It is trading at 18x earnings, which is 2 points higher than the average. The EPS should grow 12% this year. Dividends will also likely grow further. Could trim into further strength but for the time being, happy to hold it. Unlock Premium - Try 5i Free

PAST TOP PICK

(A Top Pick Sep 15/20, Up 31%) The gains are surprising. They've invested in long term areas, namely e-commerce. Costs to protect employees from Covid will roll off. Shoppers during Covid flocked to the top supermarkets, though are now returning to the discount chains, which Loblaw also owns. She's waiting for a pullback to add more shares. Loblaw is expanding into primary care health clinics and expanding into e-health, both of which are good.

PAST TOP PICK

(A Top Pick May 25/21, Up 39%) He took profits a month and a half ago. The stock got overvalued. Then, defensives didn't look like they would hold onto, but going forward they and other defensive stocks look more attractive.

PAST TOP PICK

(A Top Pick Apr 08/21, Up 27%) A star performer over the last 6 months. Still room to go. Margins of Shopper's DM are compelling at close to 40%.

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Loblaw Companies Ltd (L.TO)

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