Veeral KhatriEmpire Company (A)EMP.A.TODON'T BUYDec 08, 2017

Turned around Safeway acquisition. Inflation has helped food pricing. Canadian population growth. All the grocery chains own the best locations. Underperformed this year. Valuation much more attractive. Has always logged Loblaw, perhaps because EMP.A has a more confusing structure.

Defensive. Owned it a while ago, but Loblaw offers better value, the Shoppers chain, exposure to cities, and better efficiencies. Neither pays a good dividend, but Empire's chart looks attractive now for the short term. 

Very expensive, trading up near maximums. Be patient, let things fall to something that will give you a better rate of return.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Has seen some target downgrades, although relatively small. The weakness comes after the company stated it expects sales growth to slow. The decline is an interesting buy opportunity as it remains cheap and safe in these market conditions. Unlock Premium - Try 5i Free

MRU-T vs. EMP.A-T. Metro has been his favourite grocery stock for 15 years. Grocery are the stay-at-home stocks but as we exit the pandemic this is not where you want to be. Don’t buy until the rotation is completed.

Billy Kawasaki’s Insights - Picks from 5i Research. The recent results were overall very solid. Revenue, as well as Earnings per Share both beat expectations. Same store sales were up 11% and continues to have good momentum. They are transitioning their brand right now and it is going as expected. Unlock Premium - Try 5i Free

Earnings miss? She owns Loblaws instead of Empire, who just commented how competition is increasing. The recent stock pullback might just be a re-calibration of earnings metrics following the release of an earnings miss.