Metro is a leader in the food and pharmaceutical sectors in Québec and Ontario. On August 9, Metro reported 2012 Q3 EPS growth of 18.7%. Metro is in a bullish trend since 2008.
From a fundamental viewpoint, the company has a valuation in line with its industry. It has a 13.2x estimated PER for FY2012. Moreover, analysts revised regularly upward EPS estimates. It is a strong buy signal, especially when the business predictability is very good. Surperformance ratings confirm the quality of this investment.
Technically, the security is in an uptrend. On all time scales, moving averages are sharply increasing. The stock is currently testing its historical highs at CAD 59.35. Furthermore, Metro is trying to cross its trend line support. This would be a significant new bullish signal for investors.
Therefore, active investors can take a long position in the Canadian company. If Alimentation Couche Tard valuation is applied to Metro, the target price is CAD 71. A crossover of 20-day moving average area would invalidate this strategy.
Metro Inc. is a food and pharmacy retailers and distributors company. The Company, through its activities as a retailer, franchisor or distributor, and manufacturer operates or supplies a network of supermarkets, discount stores and drugstores. It operates 975 food stores under several banners, including Metro, Metro Plus, Super C and Food Basics, as well as 645 drugstores primarily under the Jean Coutu, Brunet, Metro Pharmacy and Food Basics Pharmacy banners. The Metro banner, with its 328 stores including 120 Metro Plus stores in Quebec is a supermarket chain. The Super C banner operates 102 discount stores in Quebec and offers a range of grocery products. Food Basics is a discount store providing quality products to customers in 143 locations across Ontario. The Food Basics Pharmacy banner is located in 30 Food Basics grocery stores. Its Food Basics Pharmacy is a full-service pharmacy and offers professional services, such as health reminders and medical profiles, among others.
METRO INC. 
