Grocery Outlet Holding Stock Buy Hold or Sell Recommendation

GO Stock  USD 29.00  1.14  4.09%   
Allowing for the 90-day total investment horizon and your above-average risk tolerance, our recommendation regarding Grocery Outlet Holding is 'Strong Hold'. Macroaxis provides Grocery Outlet buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding GO positions. The advice algorithm takes into account all of Grocery Outlet's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Grocery Outlet's buy or sell advice are summarized below:
Real Value
31.53
Target Price
35.33
Hype Value
28.98
Market Value
29
Naive Value
29.54
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Grocery Outlet Holding given historical horizon and risk tolerance towards Grocery Outlet. When Macroaxis issues a 'buy' or 'sell' recommendation for Grocery Outlet Holding, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out Grocery Outlet Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
In addition, we conduct extensive research on individual companies such as Grocery and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Grocery Outlet Holding. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in persons.

Execute Grocery Outlet Buy or Sell Advice

The Grocery recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Grocery Outlet Holding. Macroaxis does not own or have any residual interests in Grocery Outlet Holding or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Grocery Outlet's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Grocery OutletBuy Grocery Outlet
Strong Hold

Market Performance

InsignificantDetails

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Follows the market closelyDetails

Investor Sentiment

ImpartialDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

PoorDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Grocery Outlet Holding has a Risk Adjusted Performance of 0.0441, Jensen Alpha of 0.0254, Total Risk Alpha of (0.26), Sortino Ratio of (0.02) and Treynor Ratio of 0.1682
Our trade recommendations module complements current analysts and expert consensus on Grocery Outlet Holding. It analyzes the firm potential to grow using all fundamental, technical, and market related data available at the time. To make sure Grocery Outlet Holding is not overpriced, please check out all Grocery Outlet fundamentals, including its book value per share, retained earnings, and the relationship between the cash and equivalents and target price . Given that Grocery Outlet Holding has a price to earning of 54.12 X, we strongly advise you to confirm Grocery Outlet Holding market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your regular risk tolerance and investing horizon.

Grocery Outlet Trading Alerts and Improvement Suggestions

Grocery Outlet has a poor financial position based on the latest SEC disclosures
Over 92.0% of the company shares are owned by institutional investors
Latest headline from zacks.com: Disposition of 1000 shares by Herman Thomas F of Grocery Outlet at 29.0 subject to Rule 16b-3

Grocery Outlet Returns Distribution Density

The distribution of Grocery Outlet's historical returns is an attempt to chart the uncertainty of Grocery Outlet's future price movements. The chart of the probability distribution of Grocery Outlet daily returns describes the distribution of returns around its average expected value. We use Grocery Outlet Holding price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Grocery Outlet returns is essential to provide solid investment advice for Grocery Outlet.
Mean Return
0.11
Value At Risk
-2.75
Potential Upside
2.33
Standard Deviation
1.59
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Grocery Outlet historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Grocery Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Grocery Outlet is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Grocery Outlet Holding backward and forwards among themselves. Grocery Outlet's institutional investor refers to the entity that pools money to purchase Grocery Outlet's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Neuberger Berman Group Llc2023-12-31
2.1 M
Jpmorgan Chase & Co2023-12-31
M
Hhg Plc2023-12-31
1.9 M
Geode Capital Management, Llc2023-12-31
1.6 M
Goldman Sachs Group Inc2023-12-31
1.5 M
Federated Hermes Inc2023-12-31
1.5 M
Ranger Investment Management Lp2023-12-31
1.4 M
Geneva Capital Management2023-12-31
1.4 M
Citadel Advisors Llc2023-09-30
1.3 M
Capital Research Global Investors2023-12-31
9.3 M
Vanguard Group Inc2023-12-31
9.3 M
Note, although Grocery Outlet's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Grocery Outlet Cash Flow Accounts

201920202021202220232024 (projected)
Change To Inventory(21.1M)(25.7M)(30.3M)(58.8M)(15.7M)(16.5M)
Investments(108.0M)(133.8M)(136.7M)(149.9M)(181.7M)(190.8M)
Change In Cash7.0M77.2M34.8M(37.4M)12.3M15.0M
Net Borrowings(415.7M)(1.9M)(1.2M)(76.3M)(68.6M)(65.2M)
Free Cash Flow32.6M50.5M32.4M38.4M111.5M117.0M
Depreciation50.1M58.1M71.1M78.3M88.0M65.0M
Other Non Cash Items12.7M4.6M6.7M16.0M15.8M11.6M
Dividends Paid3.6M434K186K105K15K14.3K
Capital Expenditures100.3M130.8M133.2M147.1M192.0M124.9M
Net Income15.4M106.7M62.3M65.1M79.4M51.6M
End Period Cash Flow28.1M105.3M140.1M102.7M115.0M72.2M
Change To Netincome42.5M20.5M38.7M48.4M55.7M33.5M

Grocery Outlet Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Grocery Outlet or Consumer Staples Distribution & Retail sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Grocery Outlet's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Grocery stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
0.03
β
Beta against NYSE Composite0.58
σ
Overall volatility
1.64
Ir
Information ratio -0.02

Grocery Outlet Volatility Alert

Grocery Outlet Holding has relatively low volatility with skewness of -0.2 and kurtosis of 0.38. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Grocery Outlet's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Grocery Outlet's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Grocery Outlet Fundamentals Vs Peers

Comparing Grocery Outlet's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Grocery Outlet's direct or indirect competition across all of the common fundamentals between Grocery Outlet and the related equities. This way, we can detect undervalued stocks with similar characteristics as Grocery Outlet or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Grocery Outlet's fundamental indicators could also be used in its relative valuation, which is a method of valuing Grocery Outlet by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Grocery Outlet to competition
FundamentalsGrocery OutletPeer Average
Return On Equity0.0682-0.31
Return On Asset0.0274-0.14
Profit Margin0.02 %(1.27) %
Operating Margin0.02 %(5.51) %
Current Valuation4.04 B16.62 B
Shares Outstanding99.23 M571.82 M
Shares Owned By Insiders8.43 %10.09 %
Shares Owned By Institutions91.55 %39.21 %
Number Of Shares Shorted6.43 M4.71 M
Price To Earning54.12 X28.72 X
Price To Book2.27 X9.51 X
Price To Sales0.70 X11.42 X
Revenue3.97 B9.43 B
Gross Profit1.09 B27.38 B
EBITDA214.22 M3.9 B
Net Income79.44 M570.98 M
Cash And Equivalents107.28 M2.7 B
Cash Per Share1.10 X5.01 X
Total Debt1.39 B5.32 B
Debt To Equity1.30 %48.70 %
Current Ratio1.63 X2.16 X
Book Value Per Share12.29 X1.93 K
Cash Flow From Operations303.45 M971.22 M
Short Ratio4.58 X4.00 X
Earnings Per Share0.79 X3.12 X
Price To Earnings To Growth2.48 X4.89 X
Target Price31.27
Number Of Employees90118.84 K
Beta0.085-0.15
Market Capitalization2.76 B19.03 B
Total Asset3.34 B29.47 B
Retained Earnings341.96 M9.33 B
Working Capital132.59 M1.48 B
Note: Disposition of 8300 shares by Andrea Bortner of Grocery Outlet at 26.61 subject to Rule 16b-3 [view details]

Grocery Outlet Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Grocery . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Grocery Outlet Buy or Sell Advice

When is the right time to buy or sell Grocery Outlet Holding? Buying financial instruments such as Grocery Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having Grocery Outlet in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Small Blend Funds Thematic Idea Now

Small Blend Funds
Small Blend Funds Theme
Fund or Etfs that invest in stocks of small to mid-sized entities that have characteristics of both growth and value companies. The Small Blend Funds theme has 39 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Small Blend Funds Theme or any other thematic opportunities.
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When determining whether Grocery Outlet Holding offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Grocery Outlet's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Grocery Outlet Holding Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Grocery Outlet Holding Stock:
Check out Grocery Outlet Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

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Is Grocery Outlet's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Grocery Outlet. If investors know Grocery will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Grocery Outlet listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.12)
Earnings Share
0.79
Revenue Per Share
40.214
Quarterly Revenue Growth
0.063
Return On Assets
0.0274
The market value of Grocery Outlet Holding is measured differently than its book value, which is the value of Grocery that is recorded on the company's balance sheet. Investors also form their own opinion of Grocery Outlet's value that differs from its market value or its book value, called intrinsic value, which is Grocery Outlet's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Grocery Outlet's market value can be influenced by many factors that don't directly affect Grocery Outlet's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Grocery Outlet's value and its price as these two are different measures arrived at by different means. Investors typically determine if Grocery Outlet is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Grocery Outlet's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.