Top 5 Canadian Grocery Stocks to Buy and Forget.
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
It is one of a small group of major grocers in Canada, a really well managed company. He would buy it on any weakness. It is a good defensive stock to hold over the long term. He sold it recently because it had had a long run.
(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…
Very solid. Decent hold here. Low growth sector, about 5%. Good franchise. On weakness below $37, look at buying. If you're negative on the market, safe place to be. If you're positive on the market, there are better places for your money. Yield of 1.5% that will slowly increase over time.
He recently sold his position because he was concerned about the lack of sequential growth and the subscriber decline. If it came back down he would reconsider it again. He is watching it from the sidelines. He likes the management and the company.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company reports on Thursday. Likes the company somewhat. It’s cheap at 13x earnings and offers a nice, secure dividend. $591M in sales is expected with a $0.73 per share income. Unlock Premium - Try 5i Free
These companies are a threat:
Allan Tong’s Discover Picks Like all retailers including Target, Walmart faces the twin challenges of labour and supply shortages. These will eventually end, but will likely linger for for the rest of this year. Fruther, the tailwind of stimulus cheques from Washington has dried up. Then, there’s Amazon. The planet’s largest retailer plans to build…
A phenomenal business, lumped into retail, but they're really a membership business. Their profit and cash flow come from membership and people stay members. An exceptional business model that offers consumers tons of value. His only concern is the high valuation, north of 35x earnings. You won't buy this dirt cheap, but wait for a…
PKI vs ATD'B They've done a good job rolling up fuel distribution. It's compared to ATD'B a lot, which he prefers because they're also in convenience stores as well as selling fuel--diversified. Also, ATD'B managers are phenomenal. PKI is too, but it's a different business. ATD'B allocates capital well in buying back shares and buying…