Our grocery leaders are hitting all-time highs

Article Excerpt

Both Loblaw and Metro have soared to all-time highs for our subscribers! Meanwhile, we think both stocks still have gains ahead. Indeed, both remain buys. LOBLAW COMPANIES, $223.80, is a buy. The retailer (Toronto symbol L; Shares o/s: 299.0 million; Market cap: $65.3 billion; TSINetwork Rating: Above Average; Yield: 0.9%; www.loblaw.ca) operates 1,106 supermarkets under several banners, including Loblaws, Zehrs, Provigo, Real Canadian Superstore and No Frills. It also operates 1,351 Shoppers Drug Mart drugstores across Canada. Loblaw continues to benefit from higher selling prices, which offset rising costs for food, fuel and other inputs. It’s also seeing higher customer traffic at its discount outlets. In the quarter ended March 22, 2025, sales rose 4.1%, to $14.14 billion from $13.58 billion a year earlier. Loblaw’s earnings before one-time items gained 6.1%, to $570 million from $537 million. Due to fewer shares outstanding, per-share earnings rose 9.3%, to $1.88 from $1.72. Loblaw’s shares trade at a reasonable 23.7 times the $9.44 a share the company is forecast to make…