Grocery retailers proved to be one of the best targets during the COVID-19 pandemic and the subsequent market pullback. Indeed, essential services were generally propped up while other businesses were forced to close their doors. That made stocks like Metro (TSX:MRU), which is a top Montreal-based grocery retailer, a great hold since the start of this decade.
Inflation has soared to heights not seen in decades in 2022. One of the key drivers of inflation has been rising food prices. That has also contributed to huge profits at Metro and its peers. Shares of Metro have climbed 3.6% in 2022 as of close on October 17.
This company released its third quarter fiscal 2022 earnings on August 10. It delivered total sales growth of 2.5% to $5.86 billion. Meanwhile, adjusted net earnings jumped 8.7% to $283 million and adjusted fully diluted earnings per share surged 11% to $1.18. Sales were up even considering the elevated sales conditions that were present during the third quarter of fiscal 2021.
Investors looking for some cover in a bear market or a shaky economic should consider Metro and its peers going forward. This stock currently possesses a favourable price-to-earnings ratio of 19. Meanwhile, this grocery retail stock last paid out a quarterly dividend of $0.275 per share. That represents a modest 1.5% yield. This stock also boasts a fantastic balance sheet. It is a low-risk option you should consider right now.
