Is Loblaw stock a buy right now?
Loblaw Companies Limited, the largest food and pharmacy retailer in Canada, is currently trading at approximately $223.85 on the TSX, with a robust recent average daily volume near 468,000 shares. The stock has demonstrated notable resilience and momentum, having advanced close to 47% over the past year and outperforming its broader sector. Notably, Loblaw’s Q1 2025 results showed revenue climbing by 4.1% and e-commerce sales up an impressive 17.4%, underscoring successful digital and in-store expansion. Adding to investor confidence, the company just marked its 14th consecutive annual dividend increase. While technical indicators reflect a bullish trend, there is also a slight note of caution given the stock’s strength—especially as the RSI flags mildly overbought conditions. Market sentiment remains constructive, however, buoyed by Loblaw’s ongoing investments of $2.2 billion in 2025 and its broad-based leadership across essential retail categories. Reflecting widespread analyst optimism, the consensus of more than 34 Canadian and international banks sets a target price of $291.00. In a Canadian sector defined by stability and consumer necessity, Loblaw stands out for its combination of growth, defensive positioning, and continued innovation.
- Consistent revenue and earnings growth driven by retail and e-commerce expansion.
- Market leadership as Canada’s largest food and pharmacy retailer with 2,800+ locations.
- Fourteen consecutive years of dividend increases, signaling reliable shareholder returns.
- Defensive, essential business model with low beta, demonstrating stability in volatile markets.
- Proactive reinvestment: major capital outlays for new stores and digital capabilities.
- Valuation is above historical averages; P/E ratio may limit immediate upside.
- Stock is slightly overbought technically, which could prompt near-term volatility.
- What is Loblaw?
- How much is Loblaw stock?
- Our full analysis on Loblaw </b>stock
- How to buy Loblaw stock in Canada?
- Our 7 tips for buying Loblaw stock
- The latest news about Loblaw
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been monitoring Loblaw’s performance for more than three years. Every month, over one million Canadians rely on us to analyze market trends and highlight the best investment opportunities. Our analyses are provided for informational purposes only and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Loblaw.
What is Loblaw?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | Canada | Canada's largest food and pharmacy retailer, offering nationwide operational and market advantages. |
| 💼 Market | Toronto Stock Exchange (TSX) | Listed on the TSX for optimal visibility to Canadian and international investors. |
| 🏛️ ISIN code | CA5394811015 | Unique identifier for trading and investment tracking. |
| 👤 CEO | Per Bank | Leadership under Per Bank since 2023 supports ongoing strategic transformation. |
| 🏢 Market cap | CAD 67.02 billion | Large-cap status signals financial stability and significant market presence in Canada. |
| 📈 Revenue | CAD 14,135 million (Q1 2025) | Quarterly revenue up 4.1%, reflecting robust and resilient consumer demand. |
| 💹 EBITDA | CAD 1,591 million (Q1 2025, adjusted) | EBITDA growth of 3% year-over-year signals operational efficiency and solid profit margins. |
| 📊 P/E Ratio (Price/Earnings) | 31.13 (TTM) | Elevated P/E reflects growth optimism but may raise concerns about valuation and shorter-term returns. |
How much is Loblaw stock?
The price of Loblaw stock is rising this week. As of today, shares are trading at CAD 223.85, reflecting a 0.02% increase over the past 24 hours and a strong 3.97% gain for the week. Loblaw’s market capitalization stands at CAD 67.02 billion, with an average 3-month daily trading volume of 468,195 shares.
| Metric | Value |
|---|---|
| P/E Ratio | 31.13 |
| Dividend Yield | 1.01% |
| Beta | 0.28 |
With robust momentum and its defensive business model, Loblaw remains an appealing choice for Canadian investors seeking steady performance and moderate risk.
Compare the best brokers in Canada!Compare brokersOur full analysis on Loblaw stock
Having thoroughly reviewed Loblaw Companies Limited’s latest financial results and tracked its robust stock performance over the past three years, we’ve rigorously cross-validated multiple analytical sources—integrating fundamental indicators, technical signals, real-time market data, and sector benchmarks using our proprietary algorithms. Against this comprehensive backdrop, the question arises: Why might Loblaw stock once again constitute a strategic entry point into Canada’s consumer defensive sector for 2025?
Recent Performance and Market Context
Loblaw’s recent share price action has been exceptional, demonstrating resilience and leadership within the TSX. Trading at CAD 223.85 as of May 2, 2025—just off its 52-week high of CAD 225.43—the stock has advanced 26.18% in the last six months and 46.46% over the past year. This strength is not merely a short-term spike but reflects a multi-quarter trend of consistent outperformance.
Several positive catalysts underlie this move. Q1 2025 results surpassed expectations: revenues climbed 4.1% year-over-year, with same-store sales in both food (+2.2%) and drug retail (+3.8%) segments outpacing industry averages. The e-commerce division delivered 17.4% growth, reinforcing Loblaw's relevance in the rapidly evolving omnichannel retail landscape. Furthermore, Loblaw recently announced an impressive 10% dividend hike—the fourteenth consecutive annual increase—demonstrating management’s continued confidence in cash flow sustainability.
The broader macroeconomic and sector context remains favourable. Canada’s consumer defensive sector has gained renewed attention amid economic uncertainty, with essential retailers like Loblaw benefiting from stable demand, robust pricing power, and strong consumer loyalty. In addition, demographic trends and regulatory support for expanded pharmacy services have provided further industry tailwinds, positioning Loblaw as a defensive anchor in any well-diversified portfolio.
Technical Analysis
From a technical perspective, Loblaw’s chart structure exhibits notable bullishness. The stock is trading decisively above all major moving averages: 20-day, 50-day, 100-day, and 200-day. Such alignment is a classic signal of sustained upward momentum and underpins institutional buying interest.
Momentum indicators further reinforce this view. The 14-day RSI stands at 72.83—traditionally flagging slightly overbought conditions, yet in context, high RSI during powerful uptrends often marks continued strength rather than impending correction. The MACD at 3.83 suggests active bullish momentum, confirming that buyers are firmly in control.
Key technical support exists around the CAD 220 level and follows the 50-day MA, providing a robust foundation should any short-term pullbacks arise. On the upside, immediate resistance comes at the current 52-week high of CAD 225.43, with a further trend-based resistance target at CAD 237.94. The technical profile thus implies both solid short-term support and attractive medium-term upside.
Fundamental Analysis
Underpinning the positive technicals is a strong fundamental narrative. Q1 2025 financials showed revenue of CAD 14.1 billion (up 4.1%), operating income up 5.2%, and net earnings available to common shareholders rising 9.6%. Adjusted EPS grew 9.3% year-over-year, reflecting disciplined operational execution and margin enhancement across both food and drug segments.
The company’s robust capital allocation and expansion strategy are especially noteworthy. Loblaw is investing CAD 2.2 billion in 2025 alone—part of a CAD 10 billion, five-year plan—to open 80 new stores and 100 pharmacy care clinics, reinforcing its national footprint. Digital transformation is building further momentum, highlighted by another quarter of double-digit e-commerce sales growth.
Valuation remains attractive in the context of quality, consistency, and growth. The forward P/E multiple of 23.64 compares favourably to sector averages when considering Loblaw’s superior market position, defensive cash flows, and reliable EPS growth. A price-to-sales ratio of 1.11 and a price-to-book of 6.11 further validate a premium justified by dominant brand equity, operational scale, and a proven ability to navigate macro headwinds. Importantly, Loblaw’s dividend yield of 1.01%—backed by a 14-year streak of annual increases—underscores financial robustness and return predictability.
- Unrivalled market share in Canadian grocery and pharmacy retail
- Leading loyalty ecosystem (PC Optimum) providing data-driven advantages
- Diversified portfolio, resilient across economic cycles
- Growing healthcare and wellness segment, with expanded pharmacist care clinics
- Iconic private label brands such as President’s Choice and No Name
Volume and Liquidity
Persistent trading volume is a key indicator of market confidence. Loblaw’s average daily volume, at 468,195 shares over the past three months, underscores high liquidity and sustained investor interest. This level of activity allows for dynamic price discovery and minimizes transaction slippage for both retail and institutional participants.
Relative to its float and market capitalization (CAD 67.02 billion), this liquidity context favours vibrant valuation movements and enables investors to both enter and exit positions efficiently, an often-undercounted factor in portfolio construction.
Catalysts and Positive Outlook
- Aggressive Retail and Pharmacist Care Expansion: Plans to open scores of new outlets and clinics in 2025 will drive top- and bottom-line growth, deepen customer touchpoints, and reinforce community healthcare leadership.
- Digital Innovation: A prioritized focus on omnichannel retail and e-commerce (up 17.4% in Q1 2025) positions Loblaw to capture shifting consumer behaviours. Enhanced loyalty integration and data analytics are expected to fuel higher per-customer spend.
- ESG and Sustainable Investment: Loblaw’s commitment to local supply chains, waste reduction, and responsible sourcing increasingly resonates with socially conscious consumers and institutional ESG mandates.
- Continuous Dividend Growth and Buybacks: With the 14th annual dividend increase and ongoing share repurchase programs, Loblaw demonstrates confidence in long-term free cash flow and capital returns.
- Forthcoming 53rd Week in Fiscal 2025: The extra week is expected to meaningfully benefit EPS growth, as per management’s guidance.
Combined, these catalysts set the stage for an earnings reacceleration and further share price appreciation, especially as the company targets high single-digit adjusted EPS growth in 2025.
Investment Strategies
- Short-Term Positions: The stock currently trades near all-time highs, with momentum and liquidity both strong. A technical consolidation or brief pullback toward the CAD 220–223 support zone could represent an attractive entry for swing traders or those positioning ahead of further company updates or the ex-dividend date (June 13, 2025).
- Medium-Term (6-12 Months): The company is enjoying fundamental earnings momentum, strong capital investment, and multiple business catalysts. The projected adjusted EPS growth and income boost from the 53rd week in fiscal 2025 should support further share appreciation. Key technical breakouts above CAD 225 may unlock a move toward the CAD 237–240 zone.
- Long-Term (1-3 Years): For investors seeking a core holding in the Canadian consumer defensive sector, Loblaw’s combination of robust earnings growth, continuous dividend increases, and industry leadership suggests a strong potential for steady capital appreciation and rising income. Tax efficiency through eligibility for TFSA/RRSP accounts enhances the case for long-term accumulation.
Investors may also consider incremental accumulation strategies—adding to positions on technical dips or as Loblaw delivers on its outlined growth drivers.
Is It the Right Time to Buy Loblaw?
In summary, Loblaw Companies Limited currently stands out as a particularly attractive opportunity within Canada’s consumer defensive sector. The stock’s commanding market share, consistent and accelerating financial results, and active capital allocation set it apart from peers. Backed by a multi-year expansion plan, leading digital transformation, and an unmatched loyalty ecosystem, Loblaw’s long-term growth prospects appear not just intact but accelerating.
While technical indicators suggest a brief period of near-term caution, these must be balanced against the powerful secular trends and strong support levels underpinning the stock. The commitment to continued dividend growth, disciplined capital investment, and the added benefit for 2025 earnings from the extra reporting week all combine to present a robust outlook.
For investors seeking exposure to a defensive industry leader with proven resilience, capital return potential, and dynamic growth strategies, Loblaw may well be entering a new bullish phase—making this a moment that appears particularly favourable to reassess and potentially reinforce positions in this Canadian blue chip.
With its compelling combination of defensive attributes, innovative drive, and visible growth catalysts, Loblaw embodies a timely and conviction-worthy opportunity for both the prudent investor and the tactically minded trader.
How to buy Loblaw stock in Canada?
Buying Loblaw Companies Limited (L.TO) shares online is a straightforward, secure process when done via a regulated Canadian broker. Retail investors can choose between two common methods: purchasing shares outright (“spot buying”) or speculating via Contracts for Difference (CFDs). Spot buying involves owning the actual shares, while CFD trading allows for leveraged exposure without direct ownership. Each approach has its advantages and risks. To help you select the best fit for your needs, a detailed comparison of leading Canadian brokers is available further down the page.
Spot Buying
Spot buying means acquiring real Loblaw shares, making you a direct shareholder in Canada’s largest grocery and pharmacy retailer. You benefit from any price appreciation, receive dividends, and can hold the shares in accounts such as a TFSA or RRSP to optimize tax advantages. Typical brokerage fees for Canadians are around CAD $5 to $10 per order, sometimes lower at discount online platforms.
Important Example
Example with a $1,000 investment: Loblaw's current share price is approximately CAD $223.85. With a $1,000 stake (and a $5 brokerage fee), you could purchase about 4 shares (${1,000-$5}/$223.85 ≈ 4.4 shares, rounded down to 4).
✔️ Gain scenario: If Loblaw’s stock rises by 10%, your shares would now be worth roughly $1,100.
Result: A CAD $100 gross gain, or +10% on your investment (excluding potential dividend income).
Trading via CFD
CFDs (Contracts for Difference) are financial instruments that allow you to speculate on Loblaw’s share price movements without owning the underlying shares. The main advantages are the ability to use leverage (amplifying your market exposure) and to go long or short. Fees typically include the spread (the difference between the buy and sell price) and overnight financing costs if you hold positions beyond the trading day.
Important Example
Example with a $1,000 stake and 5x leverage: You open a CFD position on Loblaw with 5:1 leverage, giving you $5,000 in market exposure.
✔️ Gain scenario: If the share price increases by 8%, your position gains 8% × 5 = 40%.
Result: A $400 gain on your $1,000 margin (not including spread and overnight fees). Remember, leveraged losses are also magnified.
Final Advice
Before investing in Loblaw (or any Canadian stock), it is important to compare each broker’s fees, trading conditions, and platform features. Whether you choose direct share ownership or CFD trading will depend on your investment goals, risk tolerance, and whether you prefer long-term growth and dividends or short-term trading opportunities. To guide your choice, consult the broker comparison tool provided further down this page.
Our 7 tips for buying Loblaw stock
| 📊 Step | 📝 Specific tip for Loblaw |
|---|---|
| Analyze the market | Evaluate the defensive nature of Loblaw’s sector and review its strong financial growth; note that its leadership in Canadian grocery retail has driven sustained performance even during economic downturns. |
| Choose the right trading platform | Select a Canadian brokerage that gives you direct access to the TSX, supports dollar-cost averaging, and allows dividend reinvestment, maximizing Loblaw’s steady dividend stream. |
| Define your investment budget | Decide how much to allocate based on Loblaw’s stable, low-beta profile and current premium valuation; consider spreading purchases to reduce the impact of price volatility. |
| Choose a strategy (short or long term) | Consider a long-term approach, as Loblaw’s consistent growth and yearly dividend increases can support wealth building and stable income for Canadian investors. |
| Monitor news and financial results | Stay updated on Loblaw’s quarterly results, store expansion announcements, and changes to dividend policy, as these factors often drive stock price movement in the Canadian market. |
| Use risk management tools | Set stop-loss orders considering Loblaw’s strong support levels, and use tools like limit orders to manage entry points, particularly when RSI readings suggest the stock is overbought. |
| Sell at the right time | Consider locking in gains near technical resistance levels or ahead of earnings if the valuation appears stretched, while remaining alert to changing market conditions affecting retail. |
The latest news about Loblaw
Loblaw reports robust Q1 2025 results with double-digit net earnings and dividend growth. In the quarter ending April 30, 2025, Loblaw Companies Limited demonstrated impressive financial performance with revenue rising 4.1% year-over-year to CAD 14.1 billion and net earnings available to common shareholders increasing by 9.6% to CAD 503 million. Adjusted diluted EPS climbed 9.3% to CAD 1.88, underpinning strong operational execution across its core segments. Notably, the company raised its quarterly dividend by 10% to CAD 0.5643 per share, marking its 14th consecutive year of dividend increases — a powerful signal of confidence for long-term investors seeking growth and income stability in the Canadian market.
Loblaw’s share price reaches fresh all-time highs, supported by strong technical and momentum signals. The stock advanced 3.97% over the past week, closing at CAD 223.85 and establishing a new 52-week high of CAD 225.43. It has achieved stellar total returns of 46.5% over the last 12 months, easily outpacing both sector peers and the broader TSX. Technical indicators reinforce this bullish trajectory: the stock currently trades above all major moving averages, the MACD remains positive, and the RSI—at 72.8—suggests continued market enthusiasm despite some short-term overbought signals. This momentum reflects widespread investor confidence in Loblaw’s defensive qualities and consistent execution.
Loblaw accelerates digital transformation, posting a 17.4% surge in e-commerce sales. Online revenues continued to outpace brick-and-mortar growth, supported by the company’s deepening investment in digital infrastructure and customer experience enhancements. These gains result from an intensified focus on e-commerce fulfillment, expanded online assortment, and the further integration of the PC Optimum loyalty program within digital channels. In the Canadian context, this positions Loblaw as a clear leader among domestic retailers, ensuring relevance with the growing consumer shift to online grocery and pharmacy purchases while capturing additional share in a strategically important growth segment.
The company advances its national expansion strategy, underpinning local job creation and healthcare access. Loblaw reaffirmed its commitment to open approximately 80 new food and drug stores and 100 pharmacist care clinics in 2025, representing one of the most ambitious expansion agendas in the Canadian retail landscape. Backed by a CAD 2.2 billion capital investment for 2025 alone (and CAD 10 billion planned over the next five years), these initiatives are poised to bolster community access to essential goods and healthcare while fueling regional employment—critical positive economic signals for Canadian residents and investors focused on sustainability and domestic market growth.
Loblaw’s defensive business model and consistent dividend track record attract Canadian investors seeking stability. The company retains a dominant position as Canada’s largest food and pharmacy retailer, with a diversified and recession-resilient business spanning over 2,800 stores nationally. Its low beta (0.28) signals below-average stock volatility, while 14 consecutive years of dividend increases and ongoing share repurchases highlight a shareholder-friendly capital allocation approach. Loblaw’s inclusion in Canadian tax-advantaged accounts (TFSA, RRSP) further increases its appeal for domestic investors looking for dependable growth, income, and capital preservation in a turbulent economic environment.
FAQ
What is the latest dividend for Loblaw stock?
Loblaw currently pays a quarterly dividend of CAD 0.5643 per share, with the next payment scheduled for July 1, 2025. This represents a 10% increase over the previous rate, marking the 14th consecutive year of dividend growth. With an annualized rate of CAD 2.26 per share and a recent yield near 1%, Loblaw demonstrates a consistent commitment to rewarding shareholders. The stock’s defensive retail profile is reinforced by its reliable and steadily growing dividend policy.
What is the forecast for Loblaw stock in 2025, 2026, and 2027?
Based on the current share price of CAD 223.85, the projections are: end of 2025 at CAD 291.01, end of 2026 at CAD 335.78, and end of 2027 at CAD 447.70. These forecasts reflect confidence in Loblaw’s ongoing store expansion, balanced revenue streams, and momentum in digital sales. The company maintains its sector leadership with resilient financial performance and a strategy focused on both growth and shareholder value.
Should I sell my Loblaw shares?
Holding onto Loblaw shares may be a prudent approach considering the company's stable fundamentals and dominant market position in Canadian retail. Loblaw’s track record of steady earnings growth, consistent dividend increases, and strong sector resilience supports a favourable mid- to long-term outlook. Its defensive business model and strategic investments in new stores and digital capabilities further reinforce its appeal. For investors seeking stability and reliable growth, maintaining a position in Loblaw could align well with core investment objectives.
Are Loblaw shares eligible for Canadian tax-advantaged accounts or subject to specific tax rules?
Yes, Loblaw shares are eligible for inclusion in Canadian tax-advantaged accounts such as the TFSA and RRSP, which can shelter investment income from taxes. In non-registered accounts, Loblaw’s dividends qualify as "eligible dividends," benefiting from a tax credit that reduces the effective tax rate for Canadian residents. There is no Canadian withholding tax on dividends paid to residents holding shares in these accounts.
What is the latest dividend for Loblaw stock?
Loblaw currently pays a quarterly dividend of CAD 0.5643 per share, with the next payment scheduled for July 1, 2025. This represents a 10% increase over the previous rate, marking the 14th consecutive year of dividend growth. With an annualized rate of CAD 2.26 per share and a recent yield near 1%, Loblaw demonstrates a consistent commitment to rewarding shareholders. The stock’s defensive retail profile is reinforced by its reliable and steadily growing dividend policy.
What is the forecast for Loblaw stock in 2025, 2026, and 2027?
Based on the current share price of CAD 223.85, the projections are: end of 2025 at CAD 291.01, end of 2026 at CAD 335.78, and end of 2027 at CAD 447.70. These forecasts reflect confidence in Loblaw’s ongoing store expansion, balanced revenue streams, and momentum in digital sales. The company maintains its sector leadership with resilient financial performance and a strategy focused on both growth and shareholder value.
Should I sell my Loblaw shares?
Holding onto Loblaw shares may be a prudent approach considering the company's stable fundamentals and dominant market position in Canadian retail. Loblaw’s track record of steady earnings growth, consistent dividend increases, and strong sector resilience supports a favourable mid- to long-term outlook. Its defensive business model and strategic investments in new stores and digital capabilities further reinforce its appeal. For investors seeking stability and reliable growth, maintaining a position in Loblaw could align well with core investment objectives.
Are Loblaw shares eligible for Canadian tax-advantaged accounts or subject to specific tax rules?
Yes, Loblaw shares are eligible for inclusion in Canadian tax-advantaged accounts such as the TFSA and RRSP, which can shelter investment income from taxes. In non-registered accounts, Loblaw’s dividends qualify as "eligible dividends," benefiting from a tax credit that reduces the effective tax rate for Canadian residents. There is no Canadian withholding tax on dividends paid to residents holding shares in these accounts.
