Grocery business is extremely competitive. He'd rather focus on Costco, Walmart, Amazon through Whole Foods. Private label investment putting pressure on margins plus its unionized workforce have been headwinds. 15x earnings for a 5% growth rate is not compelling at this part of the cycle.
He just added to his position around $62. He doesn't understand how it fell that low. It's a great business and enjoys an oligopoly in Canada. They reached same-store sales growth last year that will likely taper off as people eat in restaurants more. Food inflation will benefit the grocers. It's in a stable, safe business. The PE is fair. Empire has performed the best in this group, while Metro is managed well and steady. Loblaw has lagged, but is the most undervalued and offers the best value.
He just added to his position around $62. He doesn't understand how it fell that low. It's a great business and enjoys an oligopoly in Canada. They reached same-store sales growth last year that will likely taper off as people eat in restaurants more. Food inflation will benefit the grocers. It's in a stable, safe business. The PE is fair. Empire has performed the best in this group, while Metro is managed well and steady. Loblaw has lagged, but is the most undervalued and offers the best value.
WN-T vs. L-T This sector is just not loved right now. Investors just aren't looking at these kinds of stocks right now. Their costs have been moving up but people aren't eating more. Their sweet spot is late April until late May. L-T could be okay so he would hold on to it.
WN-T vs. L-T This sector is just not loved right now. Investors just aren't looking at these kinds of stocks right now. Their costs have been moving up but people aren't eating more. Their sweet spot is late April until late May. L-T could be okay so he would hold on to it.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. A nice stable stock with a secure dividend. Although it may only show slow growth, it is a defensive play in case of volatility and downturn. Unlock Premium - Try 5i Free
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. A nice stable stock with a secure dividend. Although it may only show slow growth, it is a defensive play in case of volatility and downturn. Unlock Premium - Try 5i Free
Stock's underperformed for a while. Prefers Costco to all the food retailers. Not a big buyer of consumer staples right now. In a recovery, you want to focus on cyclicals. Covid costs have hit grocery stores.
Stock's underperformed for a while. Prefers Costco to all the food retailers. Not a big buyer of consumer staples right now. In a recovery, you want to focus on cyclicals. Covid costs have hit grocery stores.
L vs. WN A bit like splitting hairs. Weston controls Loblaw. When you buy Weston, you get 95% Loblaw and 5% bakery. A great business. A buy and hold through the cycles. If you get a rip roaring cyclical market, it will probably lag. High single digit or low double digit return. He doesn't like the bakery, so Loblaw gets the nod.
L vs. WN A bit like splitting hairs. Weston controls Loblaw. When you buy Weston, you get 95% Loblaw and 5% bakery. A great business. A buy and hold through the cycles. If you get a rip roaring cyclical market, it will probably lag. High single digit or low double digit return. He doesn't like the bakery, so Loblaw gets the nod.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The stock remains at a lower range. Investors may believe it has benefited strongly from the pandemic, thus future growth will be slower than recent growth. It is still a solid company and decent investment. Likes it for safety, stability and some growth. Unlock Premium - Try 5i Free
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The stock remains at a lower range. Investors may believe it has benefited strongly from the pandemic, thus future growth will be slower than recent growth. It is still a solid company and decent investment. Likes it for safety, stability and some growth. Unlock Premium - Try 5i Free
Trading in a jittery way for some years. Has let go technical support of $70. Makes him nervous. He's switch to Weston, as that's near its 10-year valuation low, with good upside potential. Weston is safer.
Trading in a jittery way for some years. Has let go technical support of $70. Makes him nervous. He's switch to Weston, as that's near its 10-year valuation low, with good upside potential. Weston is safer.
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)
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)
(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.
(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.
Ranking : 4 out of 5
Bullish - Buy Signals / Votes : 7
Neutral - Hold Signals / Votes : 3
Bearish - Sell Signals / Votes : 4
Total Signals / Votes : 14
Loblaw Companies Ltd is a Canadian stock, trading under the symbol L-T on the Toronto Stock Exchange (L-CT). It is usually referred to as TSX:L or L-T
In the last year, 14 stock analysts published opinions about L-T. 7 analysts recommended to BUY the stock. 4 analysts recommended to SELL the stock. The latest stock analyst recommendation is TOP PICK. Read the latest stock experts' ratings for Loblaw Companies Ltd.
Loblaw Companies Ltd was recommended as a Top Pick by Paul Gardner, CFA on 2021-04-08. Read the latest stock experts ratings for Loblaw Companies Ltd.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
14 stock analysts on Stockchase covered Loblaw Companies Ltd In the last year. It is a trending stock that is worth watching.
On 2021-05-14, Loblaw Companies Ltd (L-T) stock closed at a price of $72.14.
