Grocery stocks are great consumer staple stocks that are defensive in times of volatility, such as what we have seen in the past months. Metro has been hitting its 52-week high, as seen on our high list.
Big box stores such as Costco and Walmart are threatening the growth of grocery stores, as they create super centres that offer much more than just groceries and can sometimes offer better value. These companies are ramping up their grocery section and are looking into online as well. The minimum wage situation could also affect grocery stores negatively, since they run on pretty tight margins. Competition could cut revenues and leave grocery stores vulnerable. However, people have to eat and grocery stores aren’t going anywhere so this might be a good place to hide during stock market storms.
Couche-Tard, who’s weathered the sell-off, is growing its business and might threaten the classic grocery store with its convenience and availability. As a company that continually adds value to stockholders, this could be a good alternative buy.
Canadian groceries y drugstores
You want defensive stocks right now. Big thing is Jean Coutu, and integration will create earnings and cash flow growth. More difficult issue is how to expand that brand beyond Quebec, and this is already priced into the stock. A defensive name, and you can do quite well. Yield is 1.7%.
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.
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.
From $40 to $240 Million in sales in three years. 45% of the meal kit market. They recently announced they're positioning against the grocery market. They are being very smart about this. They are leveraging their platform to add to the food basket. They trade at a big discount. They just announced a reusable box…
Resistance at $28. He predicts a general market pullback in January of 5-10%. This will return to $27. Wait. But if it breaks below $23, it will head lower.
These companies are a threat:
A classic blue chip company that will be around forever. He likes the long term outlook and it has fared well lately. It will be a place that people will continue to go and they have been building their online presence.
Great story. Throwing off almost 3.1B of free cash flow, and this continues to grow. Very good recent numbers. Very well run. Thinks about costs very aggressively. House brand has done incredibly well and continues to grow. Will take away market share from the Metros of the world. Yield is 0.93%. (Analysts’ price target is…
A successful previous Top Pick. A big company with a 22% ROE and a $52 billion marketcap. Yield 0.55% (Analysts’ price target is $48.54)