While much of the TSX has stumbled under the weight of global trade tensions and economic uncertainty in 2025, some Canadian stocks are continuing to outperform the broader market by a wide margin. One such top stock is Metro (TSX:MRU), the Montréal-based grocery and pharmacy giant. MRU stock is up 15.5% year to date, vastly outperforming the TSX Composite Index’s modest 2.5% gain.
Over the past 12 months, it has surged by over 43%, handily beating the broader index’s 13.3% return. Its current share price sits around $104.09 with a market cap of $22.8 billion, and it also offers a modest but reliable 1.4% annualized dividend yield. Amid constant market swings and little predictability, Metro’s recent climb is hard to ignore.
Before exploring where Metro could be in four years, let’s quickly review some key reasons behind its recent outperformance.
Metro stock
While some investors chase high-flying growth stocks, Metro is continuing to build value through consistent execution. The company currently operates close to 995 food stores and 640 pharmacies under various trusted banners, including Metro, Metro Plus, and Food Basics. From food to pharmacy, it’s right in the sweet spot where Canadians continue to spend, regardless of economic conditions.
One major factor behind the recent surge in Metro stock could be the stable demand in its core food and pharmacy businesses. In the March 2025 quarter, the company’s same-store food sales rose 5.3% YoY (year over year).
On the pharmacy side, its same-store sales jumped 7% YoY with the help of strong growth in prescription drugs and front-store purchases. During the quarter, even Metro’s online food sales soared over 26% YoY, clearly highlighting that the company is adapting to changing shopping habits without losing its grip on traditional retail.
Strong numbers to back it all up
In the most recent quarter, Metro’s total sales rose 5.5% YoY to $4.9 billion, while its adjusted earnings jumped by 12.1% to $1.02 per share.
Similarly, the company’s margins stayed firm despite rising energy costs and higher online fulfillment expenses. And it also enjoyed a lower effective tax rate due to smart tax planning and investment credits, which padded its bottom line even further.
Where will Metro be in four years?
If its recent performance is any indication, Metro’s story is far from finished. With major infrastructure upgrades like automated distribution centers and supply chain improvements largely done, the company is now focusing on driving efficiency and growth. These moves aren’t just about saving costs. They’re about positioning Metro to serve more customers, more effectively, in both physical stores and online.
These developments, combined with a strong network of almost 1,000 grocery stores and over 600 pharmacies, give Metro the scale and flexibility to respond to what shoppers want, whether that’s fresh produce, prescription drugs, or fast online orders.
If Metro continues executing the way it has, its stock, already up over 43% in the past year, could very well be trading significantly higher by 2029. And patient investors who stick with it might find themselves holding one of the most reliable compounders on the TSX.
