Core Viewpoint - Grocery Outlet Holding Corp. is set to release its financial results for Q3 of fiscal 2025 on November 4, 2025, after market close, followed by a conference call to discuss the results [1]. Company Overview - Grocery Outlet is a high-growth, extreme value retailer based in Emeryville, California, specializing in quality, name-brand consumables and fresh products [3]. - The company operates over 550 stores across multiple states including California, Washington, Oregon, Pennsylvania, Tennessee, Idaho, Nevada, Maryland, North Carolina, New Jersey, Ohio, Georgia, Alabama, Delaware, Kentucky, and Virginia [3]. Investor Relations - A live audio webcast of the upcoming conference call will be available online, with a replay accessible for approximately one year [2]. - Investor relations contacts include Ian Ferry and Ron Clark, providing direct communication channels for inquiries [4].

Consumer Sentiment - U.S. consumer sentiment declined in October, with the University of Michigan's preliminary reading at 55, down from 55.1 in September, but above analysts' expectations of 54.1 [4] - Short-term inflation expectations eased slightly to 4.6% over the next 12 months, down from 4.7% the previous month, while long-term expectations remained unchanged at 3.7% [5] Market Environment - Overall consumer confidence remains low due to economic uncertainty, leading to increased volatility in Wall Street, exacerbated by fears of a trade dispute with China [2][7] - The ongoing government shutdown has contributed to market volatility, with all three major stock indexes ending lower last week [7] Defensive Stocks - In the current market environment, investors are advised to focus on low-beta, defensive stocks, particularly in the consumer staples sector, to mitigate market fluctuations [3] - Companies such as Energizer Holdings, Grocery Outlet, United Natural Foods, and Ollie's Bargain Outlet are highlighted for their steady earnings growth and improved estimates [9] Company Insights - **Energizer Holdings, Inc.**: Expected earnings growth rate of 8.7% for the current year, with a 1.4% improvement in earnings estimates over the last 60 days [8] - **Grocery Outlet Holding Corp.**: Expected earnings growth rate of 1.3% for the current year, with a 1.3% improvement in earnings estimates over the last 60 days [10] - **United Natural Foods, Inc.**: Expected earnings growth rate exceeds 100% for the current year, with a 24% improvement in earnings estimates over the past 60 days [12] - **Ollie's Bargain Outlet Holdings, Inc.**: Expected earnings growth rate of 16.5% for the current year, with a 2.1% improvement in earnings estimates over the last 60 days [14]

Core Viewpoint - Grocery Outlet Holding Corp. (GO) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is effective for individual investors as it focuses on earnings estimate revisions, which are strongly correlated with near-term stock price movements [2][3]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in stock price movements [3]. Business Improvement Indicators - The upgrade reflects an improvement in Grocery Outlet's underlying business, suggesting that investor sentiment regarding this trend should drive the stock price higher [4]. Importance of Earnings Estimate Revisions - Research indicates a strong correlation between earnings estimate revisions and stock movements, making it beneficial for investors to track these revisions [5]. - The Zacks Rank system utilizes four factors related to earnings estimates to classify stocks, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [6]. Current Earnings Estimates for Grocery Outlet - For the fiscal year ending December 2025, Grocery Outlet is expected to earn $0.78 per share, with no year-over-year change; however, the Zacks Consensus Estimate has increased by 12.1% over the past three months [7]. Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of "buy" and "sell" ratings across over 4,000 stocks, with only the top 5% receiving a "Strong Buy" rating [8]. - The upgrade to Zacks Rank 1 places Grocery Outlet in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9].

Core Insights - Three stocks with strong momentum and buy rankings are highlighted for investors: Tesco, Grocery Outlet, and ABB [1][2][3][4] Group 1: Tesco - Tesco is the UK's largest retailer and has a Zacks Rank 1 (Strong Buy) [1] - The Zacks Consensus Estimate for Tesco's current year earnings increased by 4.6% over the last 60 days [1] - Tesco's shares gained 8% over the last three months, outperforming the S&P 500's gain of 5.2% [2] - The company possesses a Momentum Score of A [2] Group 2: Grocery Outlet - Grocery Outlet is a high-growth, extreme value retailer with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for Grocery Outlet's current year earnings increased by 1.3% over the last 60 days [2] - Grocery Outlet's shares gained 9.4% over the last three months, also outperforming the S&P 500's gain of 5.2% [3] - The company possesses a Momentum Score of A [3] Group 3: ABB - ABB is a leading technology company with a Zacks Rank 1 [3][4] - The Zacks Consensus Estimate for ABB's current year earnings increased by 1.2% over the last 60 days [3] - ABB's shares gained 14.1% over the last three months, significantly outperforming the S&P 500's gain of 5.2% [4] - The company possesses a Momentum Score of B [4]

SAN DIEGO, Oct. 17, 2025 (GLOBE NEWSWIRE) -- Johnson Fistel, PLLP, a leading stockholder rights law firm, has initiated an investigation into certain board members and executive officers of Grocery Outlet Holding Corp. (NASDAQ: GO) for potential breaches of fiduciary duties and violations of federal securities laws. What is Johnson Fistel Investigating?Previously, a class action complaint was filed against the Company alleging that, during the Class Period from November 7, 2023 and May 7, 2024, defendants c ...

Core Viewpoint - Grocery Outlet Holding Corp. (GO) is currently viewed as a more attractive investment option compared to Colgate-Palmolive (CL) based on valuation metrics and earnings estimate revisions [3][7]. Valuation Metrics - GO has a forward P/E ratio of 19.75, while CL has a forward P/E of 21.36, indicating that GO is relatively cheaper [5]. - The PEG ratio for GO is 2.72, compared to CL's PEG ratio of 4.60, suggesting that GO offers better value when considering expected earnings growth [5]. - GO's P/B ratio stands at 1.28, significantly lower than CL's P/B of 60.23, further highlighting GO's undervaluation [6]. Earnings Estimate Revisions - GO has experienced stronger estimate revision activity, which is a positive indicator for its earnings outlook [3][7]. - The Zacks Rank for GO is 2 (Buy), while CL holds a Zacks Rank of 4 (Sell), reflecting a more favorable sentiment towards GO [3]. Value Grades - GO has been assigned a Value grade of B, whereas CL has a Value grade of D, indicating that GO is perceived as a better value investment [6].

Core Insights - Grocery Outlet has appointed Scott Fremont as the new chief supply chain officer, effective this month [1] - Fremont has nearly 18 years of experience at Target, where he held various supply chain roles, most recently as VP of global transportation, trade, and logistics [3] - Jason Potter was named president and CEO earlier this year, indicating a leadership reshuffle within the company [4] Strategic Initiatives - Grocery Outlet plans to pilot new sourcing strategies as part of its strategic initiatives [5] - The company has consolidated five distribution centers in the Pacific Northwest into one to enhance supply chain efficiencies [5] - A new distribution center on the East Coast is expected to begin operations by the end of the year [5]

Core Thesis - Grocery Outlet Holding Corp. (GO) is viewed positively due to its unique business model and growth potential, with shares trading at $16.71 as of September 17th, and a trailing P/E of 222.12 and forward P/E of 18.15 [1][2] Business Model - GO operates as an extreme-value grocery retailer with 533 stores across 17 states, primarily on the West Coast, utilizing a "treasure hunt" model similar to TJ Maxx, offering branded consumables and fresh items at significant discounts [2] - The inventory is sourced from manufacturer overruns and closeouts, creating a sense of urgency for customers and encouraging repeat visits [2] - Stores are managed by independent operators (IOs), which aligns incentives, reduces corporate overhead, and ensures strong unit economics [2] Operational Challenges and Leadership Changes - Despite having a competitive advantage in supplier relationships and logistics, GO has encountered operational issues, including a failed ERP rollout, high shrinkage rates, and underperformance in new markets [3] - These challenges have led to leadership changes and a strategic shift towards disciplined expansion and system stabilization [3] - Early indicators under new CEO Jason Potter show positive progress, with raised guidance and reduced restructuring costs [3] Growth and Financial Outlook - The company aims to open 30–35 net new stores annually, with expected store-level returns exceeding 20% by year four, potentially reaching 30% as execution improves [4] - GO's normalized free cash flow is projected to be between $140 million and $170 million, with an additional potential of $100 million FCF from 150 new stores, indicating attractive long-term returns [4] - Valuation appears reasonable at a 20x forward P/E and 12–13x FY25 adjusted EBITDA, considering growth opportunities and margin recovery potential [4] Risks and Resilience - Risks include execution challenges, competition from Aldi and Lidl, and difficulties in recruiting independent operators, but improved systems and inventory visibility could lead to significant upside [5] - GO has a history of resilience during economic downturns and potential for capital allocation through buybacks and M&A, presenting a favorable risk/reward scenario [5] - The bullish thesis remains intact, emphasizing leadership changes and ERP stabilization as key factors for future growth [6]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated from A to F based on value, growth, and momentum characteristics, with A being the highest score [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - Focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [3] Growth Score - Concentrates on a company's financial health and future growth potential, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - Aims to capitalize on price trends by evaluating recent price changes and earnings estimate revisions [5] VGM Score - Combines the three Style Scores to identify stocks with the best overall value, growth, and momentum [6] Zacks Rank Integration - The Zacks Rank utilizes earnings estimate revisions to facilitate portfolio building, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.64% since 1988 [7] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [9] Stock Highlight: Grocery Outlet Holding Corp. - Grocery Outlet Holding Corp. is a high-growth retailer specializing in discounted name-brand consumables, operating through independently owned stores [11] - The company holds a Zacks Rank of 2 (Buy) and a VGM Score of A, indicating strong growth potential [12] - Analysts have revised earnings estimates upward, forecasting a year-over-year earnings growth of 1.3% for the current fiscal year [12][13]

Company Overview - Grocery Outlet Holding Corp. is a high-growth, extreme value retailer founded in 1946 and headquartered in Emeryville, CA, offering quality, name-brand consumables and fresh products through independently owned and operated stores [11] - The stores provide a unique shopping experience in a "small-box" format, ranging from 15,000 to 20,000 square feet, featuring discounted, overstocked, and closeout products from both name brand and private label suppliers [11] Investment Ratings - Grocery Outlet Holding Corp. holds a 2 (Buy) rating on the Zacks Rank, indicating a favorable investment outlook [12] - The company has a VGM Score of A, reflecting strong overall performance across value, growth, and momentum metrics [12] Financial Metrics - The Value Style Score for Grocery Outlet is B, supported by attractive valuation metrics such as a forward P/E ratio of 21.25, which is appealing to value investors [12] - In the last 60 days, seven analysts have revised their earnings estimates higher for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.04 to $0.78 per share [12] - The company has demonstrated an average earnings surprise of +28.2%, indicating strong performance relative to expectations [12] Conclusion - With a solid Zacks Rank and top-tier Value and VGM Style Scores, Grocery Outlet Holding Corp. is positioned as a compelling option for investors seeking growth and value [13]