EMERYVILLE, Calif., Oct. 21, 2025 (GLOBE NEWSWIRE) -- Grocery Outlet Holding Corp. (NASDAQ: GO) (“Grocery Outlet”) today announced that its financial results for the third quarter of fiscal 2025 will be released after the market close on Tuesday, November 4, 2025. The company will host a conference call at 4:30pm ET (1:30pm PT) to discuss the results. A live audio webcast of the conference call will be available online at https://investors.groceryoutlet.com. A webcast replay will be available for approximat ...

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]