Topic: How To Invest

The Successful Investor Hotline – Friday, November 19, 2021

Article Excerpt

LOBLAW COMPANIES LTD., $98.00, Toronto symbol L, is a buy. The company operates 1,096 supermarkets under several banners, including Loblaws, Zehrs, Provigo, Real Canadian Superstore and No Frills. In March 2014, it purchased the Shoppers Drug Mart chain for $12.3 billion in cash and shares. Shoppers operates 1,343 drugstores across Canada. Grocery sales are now reverting to pre-pandemic levels, particularly as restaurants re-open. However, sales at the Shoppers chain continue to rise on strong demand for COVID-19 vaccines and testing. In the quarter ended October 9, 2021, Loblaw’s overall sales rose 2.4%, to $16.05 billion from $15.67 billion a year earlier. That beat the consensus forecast of $15.89 billion. Same-store sales for its supermarkets rose 0.2% from a year earlier, as higher selling prices offset a drop in the average amount spent per visit. Shoppers Drug Mart’s overall same-store sales gained 4.4% in the quarter. Pharmacy same-store sales growth was 4.8%, thanks to a higher number of filled prescriptions and higher prices. Same-store sales of other…