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The key event this week is Wednesday's interest rate announcement by the U.S. Federal Reserve. Fed funds futures are pricing in a 100-per-cent chance of a rate hike announcement.

Today, Canadian housing data with the release of Teranet-National Bank House Price Index figures will be reported. In the U.S., inflation data will be announced.

There is just one company in the S&P/TSX composite index scheduled to report its quarterly earnings results today, Alimentation Couche-Tard Inc. (ATD.B-T).

Briefly recapping Monday's stock market returns, in the U.S., the Dow Jones Industrial Average dipped 0.10 per cent, the S&P 500 index advanced 0.04 per cent, and the Nasdaq composite index increased 0.24 per cent.

Turning to Canada, the S&P/TSX composite index increased 38 points, or 0.25 per cent, with eight of the 11 sectors in the Index closing higher. There were 154 securities in the TSX Index that advanced, 91 securities declined in value, and four stocks closed the day unchanged.

The TSX Index is up 1.68 per cent year-to-date.

On today's TSX Breakouts report, there are 31 stocks on the positive breakouts list (stocks with positive price momentum), of which, seven stocks are from the technology sector. There are 22 stocks are on the negative breakouts list (stocks with negative price momentum).

The security highlighted today appears on the positive breakouts list. The positive price momentum is reaccelerating but the share price may soon face overhead resistance, which may derail the current price momentum. Deflationary pressures remain a near-term challenge for the industry, a risk that may keep the share price locked in its current trading band. For long-term investors, the stock has provided investors with solid gains. The company is Loblaw Companies Ltd. (L-T).

A brief outline is provided below that may serve as a springboard for further fundamental research.

The company

Loblaw has three core operating divisions. First, the retail segment that consists of supermarkets and drug stores under banners such as Loblaws, Real Canadian Superstore, Valu-Mart, Fortinos, Zehrs, Pharmaprix, and Shoppers Drug Mart. Second, the financial services segment, which provides banking and mortgage services. Lastly, is the company's interest in Choice Properties Real Estate Investment Trust.

Before the market opened on Feb. 23, the company reported fourth-quarter financial results that were relatively in-line with expectations. The company reported adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $956-million, up 8.5 per cent year-over-year. Adjusted earnings per share (EPS) was 97 cents, up 11.5 per cent year-over-year. Adjusted return on equity climbed to 12.9 per cent from 11.1 per cent in the prior year. The share price rallied 3.1 per cent that trading day.

Returning capital to shareholders

The company pays its shareholders a quarterly dividend of 26 cents per share, or $1.04 per share yearly. This equates to an annualized dividend yield of 1.5 per cent.

The company has announced a dividend increase along with the release of its first quarter financial results for the past four years. If history repeats itself, a dividend increase could be declared in May, when the company is anticipated to report its first quarter earnings.

During the fourth quarter, the company repurchased 2.8-million shares. In 2016, over 10-million shares were repurchased for cancellation under the company's share buyback program.

Financial forecasts

Steady earnings growth is forecast for the company. The Street is expecting EBITDA of $3.998-billion in 2017, rising to $4.168-billion the following year. The consensus EPS estimates are $4.42 in 2017, up from $4.05 reported in 2016, and anticipated to rise to $4.88 in 2018.

Earnings revisions

Earnings revisions have been modestly lower. For instance, three months ago, the EBITDA estimates were $3.975-billion for 2017 and $4.195-billion for fiscal 2019. The consensus EPS estimates were $4.51 for 2017 and $4.95 for 2018.

Valuation

The stock is commonly assessed on a sum-of-the-parts basis, applying different valuation methodologies to Loblaw's various operating segments.

The consensus target price is $79.85, implying 12 per cent upside potential to the share price over the next 12 months. Price targets range from a low of $71 (at BMO Capital Markets) to a high of $85 (at TD Securities and CIBC World Markets). Individual price targets provided by 12 firms are as follows in numerical order: $71, $75, $76, $77, $78, two at $80, two at $83, $84, and two at $85.

Analysts' recommendations

Since the beginning of 2017, 14 analysts have issued research reports on the company, nine analysts have "buy" recommendations and five analysts have "hold" recommendations.

Revised recommendations

Last month, Mark Petrie, the analyst from CIBC World Markets, raised his target price by $4 to $85. Keith Howlett, the analyst from Desjardins Securities, lifted his target price to $84 from $82, and Jim Durran, the analyst from Barclays, increased his target price to $83 from $80.

On the flip side, Tal Woolley, the analyst from Eight Capital, trimmed his target price to $76 from $78.

Chart watch

Year-to-date, the share price is relatively unchanged, rising 0.7 per cent.

Since mid-2015, the share price has been trading sideways, largely between $63 and $74, ebbing and flowing between these values. Currently, the share price is advancing, once again, towards the top end of this trading band.

The share price is approaching strong overhead resistance around $74. If the stock price can break through this level, its next major resistance level is around $80.

Should the stock price recede back into this trading band, there is initial downside support around $70, close to its 50-day moving average (at $69.47) as well as its 200-day moving average (at $69.49). Failing that, there is strong technical support around $63.

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The Breakouts file is a technical analysis screen intended to identify companies that are technically breaking out. In addition, this report highlights a company's dividend policy, analysts' recommendations, and provides a brief technical analysis for a security to provide readers with more information.

If a stock appears on the positive breakouts list, this indicates positive price momentum, and that a company may be worthwhile for investors to look at the fundamentals in order to determine if the recent price strength is warranted and will continue. If a security appears on the negative breakouts list, this indicates negative price momentum, and may be indicative of either deteriorating fundamentals or perhaps indicates a buying opportunity.

Securities screened are from the S&P/TSX composite index, the S&P/TSX Small Cap index, as well as Canadian small cap stocks outside of these indexes that have a minimum market capitalization of $200-million.

A technical analysis screen does not replace fundamental analysis, but can help identify companies worth having a closer look at.

TSX breakouts

Positive BreakoutsMarch 13 close
ABT-TAbsolute Software Corp $7.75
ADN-TAcadian Timber Corp $18.88
AT-TAcuityAds Holding Inc. $4.65
AUP-TAurinia Pharmaceuticals Inc $12.75
BLDP-TBallard Power Systems Inc $2.88
BAM.A-TBrookfield Asset Management Inc $49.07
CNR-TCanadian National Railway Co $97.83
CFX-TCanfor Pulp Products Inc $11.88
CARA-TCara Operations Ltd $26.84
CRH-TCRH Medical Corp $10.72
DSG-TDescartes Systems Group Inc $30.15
DH-TDH Corp $25.16
EFH-TEchelon Financial Holdings Inc $12.36
ECI-TEnerCare Inc $20.16
L-TLoblaw Cos Ltd $71.33
MRE-TMartinrea International Inc $10.02
NWH.UN-TNorthWest Healthcare Properties REIT $10.53
NDQ-TNovadaq Technologies Inc $11.06
OTEX-TOpen Text Corp $45.80
PWF-TPower Financial Corp $36.00
PBH-TPremium Brands Holdings Corp $72.29
SVC-TSandvine Corp $3.01
SHOP-TShopify Inc. $87.36
XSR-TSirius XM Canada Holdings Inc $5.73
TOY-TSpin Master Corp. $36.88
SVI-TStorageVault Canada Inc. $1.80
TH-TTheratechnologies Inc $5.49
RNW-TTransAlta Renewables Inc $15.28
TCL.A-TTranscontinental Inc $23.71
VNR-TValener Inc $21.60
ZCL-TZCL Composites Inc. $13.29
Negative Breakouts
AOI-TAfrica Oil Corp $2.17
AFN-TAg Growth International Inc $52.00
AIF-TAltus Group Ltd $28.89
ATH-TAthabasca Oil Corp $1.45
BAD-TBadger Daylighting Ltd $30.44
PXX-TBlackPearl Resources Inc $1.34
GBT-TBMTC Group Inc $12.58
BBD.B-TBombardier Inc $2.04
CJ-TCardinal Energy Ltd $7.55
CJT-TCargojet Inc $45.36
CVE-TCenovus Energy Inc $16.11
ET-TEvertz Technologies Ltd $16.51
HRX-THeroux-Devtek Inc $12.59
LNF-TLeon's Furniture Ltd. $16.89
NDM-TNorthern Dynasty Minerals Ltd. $1.59
REI.UN-TRioCan Real Estate Investment Trust $25.42
S-TSherritt International Corp $1.01
SGY-TSurge Energy Inc $2.48
X-TTMX Group Ltd $68.20
TCW-TTrican Well Service Ltd $3.99
VET-TVermilion Energy Inc $49.07
XDC-TXtreme Drilling & Coil Services Corp $2.13

Source: Bloomberg