LOBLAW COMPANIES LTD. $46 - Toronto symbol L

LOBLAW COMPANIES LTD. $46 (Toronto symbol L; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 282.4 million; Market cap: $13.0 billion; Price-to-sales ratio: 0.4; Dividend yield: 2.1%; TSINetwork Rating: Above Average; www.loblaw.ca) continues to expand its Joe Fresh business, which makes casual clothing and accessories. Loblaw mainly sells these goods in over 300 of its supermarkets and through 22 stand-alone stores in the U.S. and Canada.

The company plans to take advantage of the brand’s popularity by opening 140 more Joe Fresh stores in 23 countries outside of North America in the next four years. Loblaw will team up with local partners to build and operate these stores, which limits the risk of expanding in unfamiliar markets.

Loblaw is a buy.

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