METRO INC. $34 (Toronto symbol MRU; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 246.9 million; Market cap: $8.4 billion; Price-to-sales ratio: 0.7; Dividend yield: 1.4%; TSINetwork Rating: Average; www.metro.ca) plans to spend $300 million to build new supermarkets and upgrade existing stores in its 2015 fiscal year, which ends September 30, 2015. That’s up 47.8% from $203 million in fiscal 2014.
These investments should help Metro reach its long-term goal of increasing its annual sales by 2% to 4% and earnings per share by 8% to 10%.
Metro is a buy.