LOBLAW COMPANIES LTD. $67 - Toronto symbol L

LOBLAW COMPANIES LTD. $67 (Toronto symbol L; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 412.6 million; Market cap: $27.6 billion; Price-to-sales ratio: 0.6; Dividend yield: 1.5%; TSINetwork Rating: Above Average; www.loblaw.ca) announced that 13,600 unionized employees at 69 of its Ontario supermarkets have voted to accept a six-year labour contract. The deal includes wage increases and new pension protections. The company continues to benefit from the recent closure of Target’s 133 Canadian stores, as well as its 2014 acquisition of Shoppers Drug Mart. Even so, the grocery business remains highly competitive, particularly in Ontario. This new labour deal cuts Loblaw’s risk. Loblaw is a buy.

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