Loblaw Stock (L:TSX) Rises on Positive Earnings Forecast

The fundamental analysis for Loblaw stock got graded at a score of 4.3 out of 10.

Loblaw Stock Analysis:

Analysts rate Loblaw stock with a consensus Buy rating. With a 12-month average target price of $122.24 per share.
 
The average analyst target price for Loblaw stock over the next 12 months is CAD 122.24. Based on 10 analysts’ forecasts. The typical analyst recommendation for Loblaw stock is to Buy. Based on 6 positive signs and 8 negative indications. Stock Target Advisor’s personal stock analysis of Loblaw stock is a little Bearish. The stock price of Loblaw stock was CAD 107.25 at the most recent close. The stock price of Loblaw Companies Limited moved by:
-5.71% over the previous week
-1.85% over the previous month
+9.04% over the previous year
 

Loblaw Stock News:

 
The Canadian retailer increased its yearly profitability prediction. Due to the continued strong demand for food and medicines despite rising costs. In contrast to its previous projection of mid-to-high teens. Loblaw anticipates adjusted earnings per share growth. in the high teens for the fiscal year 2022. In the three months, that ended on October 8, total revenue increased to C$17.39 billion. This increased from C$16.05 billion in the prior year. That exceeded the C$16.85 billion forecast of analysts.
 

About Loblaw Companies Limited (L:TSX:CA)

 
The food and pharmacy company Loblaw Companies Limited operates in Canada. They cater to:
  • grocery
  • pharmacy
  • health and beauty
  • clothing
  • general retail
  • financial services
  • wireless mobile products and services industries

Retail and financial services are its two business segments. The Retail division runs:

  • associate-owned drug stores.
  • corporate- and franchise-owned retail food stores
  • In-store pharmacies,
  • other retailers of health and beauty products,
  • clothing retailers, and
  • other retailers of general commodities
 
The Financial Services section offers:
  • The PC Optimum program
  • banking and credit card services,
  • insurance brokerage services
  • communications services
Additionally, it offers the PC Health app, a health and wellness program. This gives Canadians access to help and services for their health. Under many brands, Loblaw Companies Limited offers its goods and services. The company’s headquarters are in Brampton, Canada. It got established in 1919. George Weston Limited’s subsidiary, Loblaw Companies Limited, carries on business.
 

Fundamental Loblaw Stock Analysis:

 

Positive Fundamentals:

 
High market capitalization.  This organization is among the top quartile and is one of the biggest in its industry. These businesses are more reliable.
 
Superior returns on risk.  In the top quartile, this stock has outperformed its sector rivals. Based on a risk-adjusted basis over the course of at least a 12-month holding period.
 
A high dividend yield.  The stock has outperformed its industry rivals over the past 5 years. (for a hold duration of at least 12 months) and is in the top percentile for average annual dividend returns. For investors seeking high-income yields, this could be an excellent buy. Especially if it is excelling on a total return basis.
 
A healthy cash flow.  The last four quarters saw positive total cash flow for the organization.
 
A favourable free cash flow.  The last four quarters saw the company generate positive total free cash flow.
 
Superior growth in earnings.  In the preceding five years, this stock’s profits growth was in the top quartile for its industry.
 

Negative Fundamentals:

 
Excessive volatility. This company’s total returns have been erratic and higher above the industry average. Based on the 5-year analysis. If you plan to invest in such a stock, be sure your risk tolerance is adequate.
 
Lower than average total returns. Annual average total returns during the previous five years. The company lagged behind its competitors.
 
Excessive in comparison to wages. The stock is trading above the sector median and at a premium to its peers’ price to earnings.
 
Compared to book value, it’s overpriced.  On a price-to-book value basis, the stock is selling at a premium to the median of its peer group.
 
Overpriced based on cash flow.  On a price-to-cash flow ratio, the stock is trading at a premium to that of its competitors. Its pricing is higher than the sector median.
 
Low equity returnThe management of the company has produced a lower-than-average return on equity. Based on the competitor analysis and the past four quarters’ analysis.
 
Inadequate capitalization. The company produced a lower median return on invested capital. During the past four quarters.
 
Priced based on free cash flow.  On a price-to-free cash flow basis, the stock is trading at a premium to that of its competitors. Its pricing is higher than the sector median.
 

Conclusion of Analysis

The fundamental analysis for Loblaw stock got graded at a  score of 4.3 out of 10.

Analysts rate Loblaw Companies Ltd.(L:TSX) with a Buy rating and a target price of $119.50

Loblaw Companies Limited Stock Analysis:

Analysts rate Loblaw Companies Ltd with a consensus Buy rating and a 12-month average target price of $119.50 per share.

Based on the Loblaw Companies Limited stock forecasts from 9 analysts, the average analyst target price for Loblaw Companies Limited is CAD 119.50 over the next 12 months. Loblaw Companies Limited’s average analyst rating is Buy . Stock Target Advisor’s own stock analysis of Loblaw Companies Limited is Slightly Bearish, which is based on 6 positive signals and 8 negative signals. At the last closing, Loblaw Companies Limited’s stock price was CAD 112.65Loblaw Companies Limited’s stock price has changed by -0.19% over the past week, -3.97% over the past month and +33.27% over the last year.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

High dividend returns

The stock has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on total return basis , for investors seeking high income yields.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

What we don’t like:

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median total returns

The company has under performed its peers on annual average total returns in the past 5 years.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Poor return on equity

The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Poor capital utilization

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Analysts rate Loblaw Companies Limited (L:TSX) with a Buy rating and a target price of $119.50

Analysts rate Loblaw Companies Limited with a consensus Buy rating and a 12-month average target price of $119.50 per share.

Based on the Loblaw Companies Limited stock forecast from 9 analysts, the average analyst target price for Loblaw Companies Limited is CAD 119.50 over the next 12 months. Loblaw Companies Limited’s average analyst rating is Buy . Stock Target Advisor’s own stock analysis of Loblaw Companies Limited is Slightly Bearish, which is based on 6 positive signals and 8 negative signals. At the last closing, Loblaw Companies Limited’s stock price was CAD 113.80Loblaw Companies Limited’s stock price has changed by -3.12% over the past week, -7.36% over the past month and +32.88% over the last year.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

High dividend returns

The stock has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on total return basis , for investors seeking high income yields.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

What we don’t like:

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median total returns

The company has under performed its peers on annual average total returns in the past 5 years.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Poor return on equity

The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Poor capital utilization

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.