Shoppers Drug Mart Corp (SC.TO)

TOP PICK
A growth story. Doing well at the front of the store and back. Growth in Quebec because that's where they have fewer stores. Earnings have been like $1.20, $1.60, $2 and now looking at $2.40, so a nice 20% growth. Stock has essentially been sideways for 9 months.
DON'T BUY
Has been a good long term position, but has a model price of $36.85, so it's not mispriced.
PAST TOP PICK
(A Top Pick Aug 23/04. Up 20%.) A great company. Not cheap. There is a lot of room for growth, both in the private label program as well as sales per square foot and they are opening more stores. A long term hold and thinks the earnings will catch up to the stock price.
HOLD
A very high quality company. Good management and strategy. Some competition coming into the market. Not tremendously overpriced right now.
BUY
A fantastic stock. Fantastic growth story.You have the back of the store which is drugs (a play on demographics), the front of the store beauty aid and health and a play on restructuring. Have another 8 years ahead of them of building out the new stores.
TOP PICK
Had a good run but has gone sideways for 4/5 months. Classic growth stock. Reports on Tuesday and is expecting $0.37/0.38 versus $0.32 a year ago. Not cheap. Has a growth multiple. Looking for $1.60 this year and $2 next year.
HOLD
Has turned out o be one of the premier Canadian retailers.
BUY
Has a premium valuation. Have done a fabulous job. Will continue to grow, but a little pricey. May go down before it goes up.
BUY
A good defensive way to play this market. In a slowing economy a good holding. Prescription drugs will continue to grow. Doing a good job in upgrading their stores and products.
DON'T BUY
There has been a focus over the last few months on retailers because they are less sensitive to costs like manufacturers. In the last couple of months, this stock has started to underperform and has to do with the fact that their revenue growth is slowing. He has been exiting his position. Prefers Canadian Tire (CTR-T).
TOP PICK
A great demographic play. Interestingly, the sales from the front of the stores are much more profitable than the pharmaceutical side. Upgrading their stores. Stable and a long term hold.
TOP PICK
Likes it for its defensive growth. Should hold up during these floppy, choppy markets. Expects it to show another 20% growth through the next several years.
BUY
Looking closely at this one. Retail drug chain stores are a classic defensive stock. A good growth story. The major risk is that some Canadian Health Care plans are requiring that prescriptions get filled at the cheapest places, so there could be some pressure on that part. Likes the new format of the high margin products.
BUY
A class act. Getting pricey, but if you want retail this is one of the better.
WEAK BUY
In a competitive industry. Trades at a premium to their competitor, Jean Coutu. A dominant player. Has a lot of positives. Sees limited upside.
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