This is a ticker that is one of the safer plays as grocery stores are not going anywhere anytime soon. If we take a look at their annual earnings we can see their revenue has increased as well as their profits.
Comparing this years annual EPS with the previous years EPS of 3.15/2.79 we can see that there is a 13% increase in EPS. if we were to assume the price of the stock should increase by EPS then a 13% increase from Dec 30 2019 53.5 should lead to an increase of share price to 60.4 so in those metrics we are undervalued.
What is great about these defensive stocks is the the safety that it provides in many ways such as it being an essential business and the Canadian government essentially subsidizing the business through CEWS and as well as CRSB ,which allows works to have sick leave at the tax payer's expense instead of the companies. I think this can be reflected by it's modest increase in it's operating expenses when you compare the increase of operating expense this year to the previous years. Currently trading at a PE ratio of 18.2. Moreover, if we consider the low interest rates, I believe it should be trading at a more higher price relative to its increase in EPS ( higher than 60.4).
TA
We trading at the bottom of a channel with bullish divergence on ths rsi and macd. Moreover we have a lot of horizontal support below it providing a nice cushion in which i doubt will break unless a black swan event occurs.
With the target being the top of the channel we may see a 15% price target
Comparing this years annual EPS with the previous years EPS of 3.15/2.79 we can see that there is a 13% increase in EPS. if we were to assume the price of the stock should increase by EPS then a 13% increase from Dec 30 2019 53.5 should lead to an increase of share price to 60.4 so in those metrics we are undervalued.
What is great about these defensive stocks is the the safety that it provides in many ways such as it being an essential business and the Canadian government essentially subsidizing the business through CEWS and as well as CRSB ,which allows works to have sick leave at the tax payer's expense instead of the companies. I think this can be reflected by it's modest increase in it's operating expenses when you compare the increase of operating expense this year to the previous years. Currently trading at a PE ratio of 18.2. Moreover, if we consider the low interest rates, I believe it should be trading at a more higher price relative to its increase in EPS ( higher than 60.4).
TA
We trading at the bottom of a channel with bullish divergence on ths rsi and macd. Moreover we have a lot of horizontal support below it providing a nice cushion in which i doubt will break unless a black swan event occurs.
With the target being the top of the channel we may see a 15% price target