#2 - Grocery Outlet Holding Corp. (NASDAQ:GO)
Grocery Outlet Holding Corp. (NASDAQ: GO) is a high-growth, off-price retailer that sells a portfolio of name-brand fresh, refrigerated, and frozen foods through a network of over 500 stores across 16 states. Grocery Outlet stores offer the best of club stores and dollar stores without membership fees, bulk purchases and with a full assortment of grocery items.
The company’s business model features a large, centralized purchasing team that undertakes opportunistic sourcing of quality, name-brand products. This model allows consumers to get savings between 40% to 70% below conventional retailers. As evidence of this, the company noted that during the recession of 2008-2009, it generated positive same-store sales growth of 27%, which was far higher than the nearest competitor.
Since 2015, the company has been increasing its earnings at a compound annual growth rate (CAGR) of 10.6%. That growth is largely attributable to consistent margins, which continue to be around 30%.
About Grocery Outlet
Grocery Outlet Holding Corp. operates as a retailer of consumables and fresh products sold through independently operated stores in the United States. Its stores offer products in various categories, such as dairy and deli, produce, floral, fresh meat, seafood products, grocery, general merchandise, health and beauty care, frozen food, beer and wine, and ethnic products.
More- Current Price
- $15.68
- Consensus Rating
- Hold
- Ratings Breakdown
- 3 Buy Ratings, 8 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $18.00 (14.8% Upside)
