Top consumer stocks primed for growth

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LOBLAW COMPANIES $67.90 (Toronto symbol L; Shares outstanding: 388.1 million; Market cap: $26.4 billion; TSINetwork Rating: Above Average; Dividend yield: 1.6%; www.loblaw.ca) operates over 1,096 supermarkets and 1,323 Shoppers Drug Mart pharmacies across Canada. In the three months ended October 7, 2017, Loblaw’s overall sales rose just 0.3%, to $14.19 billion from $14.14 billion a year earlier. Excluding gasoline purchases, same store sales at its supermarkets gained 1.4%. The increase was mainly due to slightly higher food volumes and prices. Same-store sales for Shoppers Drug Mart rose 3.3%. That reflects a 3.9% rise in prescription drug sales and a 2.8% increase in the sale of other merchandise. Loblaw sold its gas stations earlier this year. That cut its revenue in the latest quarter by $368 million and partly offset same-store gains for its supermarkets and drug stores. The company continues to aggressively cut its costs, including closing 22 under-performing stores in 2018. As a result, earnings in the quarter rose 7.2%, to $549 million…