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

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Loblaw Companies Ltd (L.TO)

64.18

-0.78 (1.20%)

as of Jul 14, 2026, 7:17:19 pm Market Open.

323 watching

Investor Insights

Jul 13, 2026, 12:00 am

This summary was created by AI, based on 14 opinions in the last 12 months.

Loblaw Companies Ltd (L-T) is seen as a dominant player in the Canadian grocery and pharmacy sectors, with its CEO focusing on successful initiatives like the No Frills brand and Shoppers Drug Mart. Many analysts acknowledge the company's private label strength, which has proven resilient during inflationary periods. Despite these positives, there are reservations about the stock's current valuation, as it is considered to be at its highest in 25 years, making some experts hesitant about buying at this price point. Additionally, competition from Walmart and Costco is a continual challenge. While it boasts strong revenue growth and free cash flow, the stock is viewed by some as potentially overvalued relative to its peers.

Consensus

Mixed

Valuation

Overvalued

Similar

COST

TOP PICK

Food retailing is defensive. Unlike Empire, Loblaw owns Shoppers which gives it an edge. Loblaw is expanding their health business, entering digital health with a new acquisition. The locations of both Loblaw and SDM are great and boast a 30% market share. People are becoming comfortable using online medical services, a trend that will continue across North America long term. The growth rate in their click-and-collect and grocery delivery may not be that strong, but will continue to rise. Trades at 14x forward earnings, reasonable. The dividend is a moderate 2%. Even if we enter high volatility, this sector and stock will be fine. (Analysts’ price target is $80.82)

PAST TOP PICK

(A Top Pick Jul 10/19, Up 6%) Relatively defensive with food and pharma. Nice defensive stock to own in this environment. Pantry loading with Covid, but they also have higher costs with protection equipment and higher labour costs. Leader in online grocery. The trading discount from Metro should narrow over time.

DON'T BUY

Are grocers safe? Yes, during this stay at home phase. Loblaw trades at 16x forward PE with a 7% growth rate. It's low beta at half the volatility of the TSX. Q2 will probably be good in terms of revenues. But he's concerned with their private label segment has required a lot of investment. Also, Loblaw is highly unionized and faces wage pressure. He prefers Metro a bit for its better valuation.

TOP PICK

It has been a volatile stock but a fantastically performing stock through the pandemic. A lot of people believe that people will opt to dine at home after restaurants open, as they do now, rather than dining out and L-T benefits from this. (Analysts’ price target is $78.73)

SELL

Missed recent earnings. In a market like this, you want to be exiting, not adding to positions. Not best of breed right now, not growing, dead money. Put your money into growth stocks in the next cycle. You want a nice growth rate at the same PE.

TOP PICK

The pullback is an opportunity. It's recession-proof. If you see a downturn ahead, now is the time to start building defensive positions. It's the biggest grocer with a fantastic pharmacy business (Shoppers Drug Mart). He sees decent growth. (Analysts’ price target is $78.50)

COMMENT

vs. Maple Leaf Foods MLF has exposure to commodity prices so it is a little cyclical. Loblaw offers slow growth but stable. MFI is probably getting hit by the coronavirus, but investing in plant-based protein which is promising. He wants to see MLF this plays out before investing.

TOP PICK

All the grocers pulled back in the last quarter given higher competition which lowers product prices. Trades at 15x earnings. Can grow 8-10%. They have online delivery now. That said, studies show that people still prefer to go to stores to buy groceries. She also likes the Shoppers Drug Mart chain; their Optimum card program works well to promote cross-selling with Loblaws. (Analysts’ price target is $75.91)

DON'T BUY

Made a big move in late-October 2018 during a huge move to defensive stocks. It's been positive yet underperformed the market since then. It's pulled back a little recently. Loblaw is in a competitive space. Wait till summer seasonality before considering it. Support is at $65. Not fond of it.

COMMENT

The staples are starting to round over after peaking a few months ago. He guesses that Loblaw has been trading above its moving average this year. If this breaks below that 200-day, then bail out.

COMMENT

Earnings miss? She owns Loblaws instead of Empire, who just commented how competition is increasing. The recent stock pullback might just be a re-calibration of earnings metrics following the release of an earnings miss.

COMMENT

Loblaw vs. Empire vs. Metro Owns none. It's a toss-up. Metro is the best. Loblaw has had fits and starts. Empire is the dark horse, bouncing back from operational problems. One is as good as the others. Metro is good for the very long-term. But Empire for the shorter-term.

COMMENT

BUY

Metro vs. Empire She owns Loblaw instead. The sector is defensive, so it's done well this year. She likes Shoppers Drug Mart, hence Loblaw, for its cross-selling via their Optimum rewards card. She prefers Metro of the two, but thinks Loblaw is better.

PAST TOP PICK

(A Top Pick Aug 01/18, Up 29%) Sold it in the spring because it was getting fully valued, but made a 20%+ return.

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Loblaw Companies Ltd (L.TO)