Latest news with #GroceryOutletHoldingCorp
Yahoo
3 days ago
- Business
- Yahoo
Investors in Grocery Outlet Holding (NASDAQ:GO) have unfortunately lost 64% over the last three years
While not a mind-blowing move, it is good to see that the Grocery Outlet Holding Corp. (NASDAQ:GO) share price has gained 20% in the last three months. But over the last three years we've seen a quite serious decline. Tragically, the share price declined 64% in that time. So the improvement may be a real relief to some. While many would remain nervous, there could be further gains if the business can put its best foot forward. Now let's have a look at the company's fundamentals, and see if the long term shareholder return has matched the performance of the underlying business. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. Grocery Outlet Holding saw its EPS decline at a compound rate of 33% per year, over the last three years. This change in EPS is reasonably close to the 29% average annual decrease in the share price. That suggests that the market sentiment around the company hasn't changed much over that time, despite the disappointment. In this case, it seems that the EPS is guiding the share price. The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers). It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.. Investors in Grocery Outlet Holding had a tough year, with a total loss of 38%, against a market gain of about 13%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 10% per year over five years. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. It's always interesting to track share price performance over the longer term. But to understand Grocery Outlet Holding better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Grocery Outlet Holding you should be aware of. Grocery Outlet Holding is not the only stock that insiders are buying. For those who like to find lesser know companies this free list of growing companies with recent insider purchasing, could be just the ticket. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
07-05-2025
- Business
- Yahoo
Why Grocery Outlet Holding Corp. (GO) Is Among the Best Food Stocks to Buy Under $30
We recently published a list of 12 Best Food Stocks to Buy Under $30. In this article, we are going to take a look at where Grocery Outlet Holding Corp. (NASDAQ:GO) stands against other best food stocks to buy under $30. Consumer Defensive Sector: Trends and Outlook On April 25, Shana Sissel, Founder & CEO of Banrion Capital Mgmt, appeared on CNBC to talk about the struggles in the consumer staple sector and investor caution due to tariffs and 'Trump exhaustion.' She said the consumer defensive stocks are going on a downward trend, which makes sense to her, especially if you look at how the market's momentum flows. The concern about a recession and potential economic downturn might be too aggressive. She opined that she wouldn't take it as much of a point right now because even if we are going to see any economic slowdown from tariffs, one thing is certain: consumers do not tend to cut back on staples. The sector includes the types of companies and consumer goods that people cannot and will not live without. However, even in this sector, there are some unusual economic indicators that may reflect signs of an economic recession. This includes the snack indicator, where people tend to cut back on snacks in tough times instead of staple food items and other more essential nutrition types. While this is something to keep in mind about the sector, Sissel said that how the consumer staples are performing reflects the momentum swing we have seen in the market. The outlook is, of course, concerning, as it is necessary to look at how people are thinking about the market conditions and the effects of tariff impacts. JP Morgan also recently gave a market outlook amid tariffs, saying that the market is very bearish, especially in the macro community. It further said that: 'Most are disregarding the latest trade developments, partly due to 'Trump exhaustion.' We observe that many prefer to stay in cash and maintain lower leverage in their books.' Talking about this outlook, Sissel said that one of the triggers that one must look out for a potential change in sentiment is the fact that there is a contrarian sentiment, where we have seen a lot of investors buying the dip. A whole generation of investors has learned to buy the dip because, most of the time, the market recovers quickly. She also said that the Trump exhaustion appears to be very real, as continuous policy changes have created uncertainty in the market, especially regarding tariffs. While it looks like things are calming down, investors are going to be cautious about jumping in too quickly because of the continuous policy changes. She thus opined that we might see cash staying on the sideline a little bit longer, which meant that we have not seen enough change to indicate that any market gains we are seeing right now are sustainable.
Yahoo
01-05-2025
- Business
- Yahoo
Why Grocery Outlet Holding Corp. (GO) is Among the Best Grocery Stocks to Buy for Recession Resistant Investing
We recently published a list of . In this article, we are going to take a look at where Grocery Outlet Holding Corp. (NASDAQ:GO) stands against other best grocery stocks to buy now for recession resistant investing. On April 24, Bryan Spillane, BofA Securities senior consumer analyst, appeared on CNBC's 'The Exchange' to talk about food stocks and how higher costs are weighing on consumers. He said that the biggest incremental headline right now is that costs are a bigger risk than anticipated going into the recent earnings season. Although there is a lot of focus on revenue risk, costs have taken the lead, and tariff risks are also affecting companies across the consumer staples industry. Companies are sending marketing messages to consumers saying that they won't be raising prices, which is something consumers didn't see during COVID-19. These trends are raising concerns about margin pressures across corporate America. Addressing these questions, Spillane said these companies no longer have the ability to price. If there are incremental costs, whether from tariffs or other sources, they will either come from additional cost-cutting or result in margin pressure. Margin pressure is materializing in some major companies in the consumer staples sector, and it is likely to persist into the next quarter as well. READ ALSO: and . These trends raise the question of whether consumer staples are an area of stability amid current market volatility and macroeconomic concerns. Spillane said that this is a very similar dynamic to what we have seen in the last month or so, which is that the stocks have held in relatively well, even though earnings estimates have come down. He further said that we have to be very selective from here onwards. Consumer staple companies that do not have negative earnings revision risks are a decent place to hide amid the current market dynamics. However, he warned that the fundamentals are decelerating for the consumer staple companies. These stocks are likely to remain under pressure if market fundamentals continue the way they are. We discussed the risks of recession looming over the stock market in a recently published article on . Here is an excerpt from the article: Threats of an impending recession are looming over the stock market due to Trump's tariffs and macroeconomic uncertainty. According to CNBC's quarterly CFO Council Survey for Q1 2025, a majority of chief financial officers are of the opinion that the economy is likely to fall into a recession in H2 2025. The CFOs said that they were generally 'pessimistic' about the overall state of the American economy, and expressed uncertainty about the stock market. With the risk of an impending recession deepening, let's look at the 10 best grocery stocks to buy now for recession-resistant investing. We sifted through stock screeners, financial media reports, and ETFs to compile a list of 15 major grocery stocks and chose the top 10 with the highest number of hedge fund holders as of Q4 2024. We sourced the hedge fund sentiment data from Insider Monkey's database. The list is ordered in ascending order of hedge fund sentiment. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (). A grocery store employee stocking shelves with fresh fruits and Outlet Holding Corp. (NASDAQ:GO) is a retailer that sells fresh food products and name-brand consumables through an elaborate network of independently operated stores. Its product offerings include fresh meat and seafood, staples, refrigerated and frozen food, and other items. On April 16, Jefferies analyst Corey Tarlowe upgraded the rating on Grocery Outlet Holding Corp. (NASDAQ:GO) and set a price target of $18.00. The analyst supported the positive rating with the company's potential for recovery and growth. Grocery Outlet Holding Corp. (NASDAQ:GO) holds a competitive market advantage because of its position as a low-price grocery store. This holds especially true in economic downturns, where the company could outperform its competitors. The analyst further opined that although the company has experienced challenges with enterprise-wide technology issues in the past, its new management is taking strategic initiatives to resolve these problems and streamline its operations. This presents an opportunity for upside potential. Tarlowe also stated that management's focus on expanding units in existing markets and solid traffic trends are anticipated to support future growth, with expected improvements in EBITDA margins and same-store sales over the coming few years. Overall, GO ranks 7th on our list of the best grocery stocks to buy now for recession resistant investing. While we acknowledge the potential for GO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GO but trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
29-04-2025
- Business
- Yahoo
Grocery Outlet Holding Insiders Added US$6.95m Of Stock To Their Holdings
In the last year, multiple insiders have substantially increased their holdings of Grocery Outlet Holding Corp. (NASDAQ:GO) stock, indicating that insiders' optimism about the company's prospects has increased. While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing. Our free stock report includes 3 warning signs investors should be aware of before investing in Grocery Outlet Holding. Read for free now. In the last twelve months, the biggest single purchase by an insider was when Lead Independent Director Erik Ragatz bought US$2.1m worth of shares at a price of US$20.91 per share. That means that an insider was happy to buy shares at above the current price of US$16.03. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Happily, we note that in the last year insiders paid US$7.0m for 439.00k shares. But they sold 122.96k shares for US$1.7m. In the last twelve months there was more buying than selling by Grocery Outlet Holding insiders. Their average price was about US$15.83. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below! Check out our latest analysis for Grocery Outlet Holding Grocery Outlet Holding is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket. There has been significantly more insider buying, than selling, at Grocery Outlet Holding, over the last three months. In total, five insiders bought US$2.7m worth of shares in that time. On the other hand, insiders netted US$1.7m by selling. We think insiders may be optimistic about the future, since insiders have been net buyers of shares. Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Grocery Outlet Holding insiders own about US$65m worth of shares. That equates to 4.2% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders. It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Grocery Outlet Holding we think they are probably pretty confident of a bright future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 3 warning signs for Grocery Outlet Holding you should be aware of. But note: Grocery Outlet Holding may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
30-03-2025
- Business
- Yahoo
Is Grocery Outlet Holding (GO) About to Explode?
We recently compiled a list of the 12 Stocks That Are About to Explode. In this article, we are going to take a look at where Grocery Outlet Holding Corp. (NASDAQ:GO) stands against the other stocks that are about to explode. Despite the current headwinds and uncertainty (which also caused heightened volatility in the last 2 weeks), there are indications that the recent US stock market correction was short-lived, and the market could return to growth. Helping the stock market move higher was a rebound in February's retail sales, following a downward revision in January. The pattern of evolution hints that January's sluggishness was more weather-driven and had little to do with the general strength of the consumer. Yardeni Research recently expressed a strong belief that retail sales will move higher in March and April, supporting the economy. Also, the recent cuts in real GDP growth projections for the first quarter of 2025 by the Atlanta Fed are primarily driven by a minority of economic niches dependent on public spending, while the core economic sectors remain strong. With that being said, we are currently at a potential bottom of the market correction, which could represent a favorable moment to pick stocks that are about to explode. Insider trading, specifically purchases made by key executive officers and directors, can often signal future stock price appreciation. When insiders buy shares of their own company, it suggests that those with the most intimate knowledge of the firm's prospects view the stock as undervalued. Economic research supports this idea; for instance, Lakonishok and Lee (2001) found that insider buying tends to precede periods of higher-than-average returns, indicating that insider purchases provide meaningful predictive power regarding stock performance. Therefore, tracking insider transactions, particularly when top management is actively buying shares in companies that are at or near 52-week lows, may help investors anticipate stocks that are about to explode. READ ALSO: 10 Stocks Set to Explode in 2025 Insider trading signals become particularly relevant as the new Trump 2.0 regime has caused a plethora of industries to crash and trade near their lows – the tariff news cycle has become exhausting, causing uncertain capital spending plans on top of direct cuts to many government programs and spending. The policies of the new US administration could indeed have long-lasting effects on many industries, such as government contracting (the closure of USAID represents a giant erosion of the total addressable market). Here's what Treasury Secretary Scott Bessent recently said: 'The market and the economy have become hooked, become addicted, to excessive government spending, and there's going to be a detox period… Could we be seeing this economy that we inherited starting to roll a bit? Sure. Look, there's going to be a natural adjustment as we move away from public spending.' Despite major changes being made in some directions, we do not exclude the possibility that many companies, that reached new lows since the election day of November 2024, are mainly driven by investors' fears and uncertainty, which may or may not materialize. For instance, many healthcare stocks have been trading lower on fears that Republicans will start digging into Medicare/Medicaid reimbursement policies and potentially interfere with the revenue base of companies relying on those programs. In this context, watching for potential hidden signals from insiders (such as significant insider buying) may help clear out any uncertainty, fear, and doubts by providing a tangible indication of management's confidence in the company's future prospects. A friendly grocery store team stocking shelves with foodservice products. For this article, we used Insider Monkey's insider trading screener to find stocks with at least two insiders buying shares worth at least $100,000 in 2025. Then, we considered only the stocks that are at or near their 52-week low. Our belief is that at least two insiders buying a significant amount of stock while the share price is at or near the lows represents an increased probability that the bottom is in rear-view mirror. Finally, we compare the list with our proprietary Q4 2024 database of hedge funds' ownership and include in the article the top 12 stocks with the largest number of hedge funds that own the stock. Analysts' projections for each stock's upside potential were also included to assess their likelihood of significant growth. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points ().Analysts' Upside Potential as of March 27: 10.16% Grocery Outlet Holding Corp. (NASDAQ:GO) operates a network of discount grocery stores specializing in opportunistic purchasing and value-focused retailing. The company offers branded groceries, fresh produce, refrigerated and frozen foods, deli, dairy, general merchandise, and health and beauty care products at discounted prices, typically through sourcing surplus inventory, closeouts, and manufacturer overruns. GO operates primarily through independently owned and operated stores under a flexible franchise model, targeting value-oriented customers seeking savings on quality goods. It is among the stocks that are about to explode. Grocery Outlet Holding Corp. (NASDAQ:GO) delivered solid Q4 results with comparable store sales increasing 2.9%, driven by 3% growth in comp count as customers responded to their assortment of 'WOW!' items featuring deepest discounts. The company is implementing significant strategic changes, including appointing new leadership with Jason Potter as CEO and Chris Miller as CFO, while also reassessing their new store opening strategy. The company is tempering near-term unit growth expectations, planning to open 33-35 net new stores in 2025 instead of the previously planned 50+ stores, focusing on existing markets and high-priority adjacent markets to improve store performance and return on invested capital. Grocery Outlet Holding Corp. (NASDAQ:GO) has made progress on systems transition work but still faces some challenges, particularly around inventory management tools for operators. On the supply chain front, the company has decided not to pursue multi-temperature distribution expansion and instead is simplifying its regional supply chain strategy, including opening a new 680,000-square-foot ambient distribution center in Vancouver. The company has implemented a workforce reduction as an initial step to reassessing its G&A cost structure and is exploring additional opportunities to scale G&A through automation and process improvements. While facing near-term challenges, management remains confident in the long-term potential of the business, citing vast white space with the potential to open over 4,000 stores across the United States. Overall GO ranks 6th on our list of the 12 stocks that are about to explode. While we acknowledge the potential of GO as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks To Buy Now According to Billionaires Disclosure: None. This article is originally published at . Sign in to access your portfolio
