GO Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
Grocery Outlet Holding Corp (GO) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company has potential growth opportunities through store refreshes and multi-year expansion, its recent financial performance shows significant declines in net income and EPS. Additionally, the technical indicators and options data do not strongly support a bullish sentiment. It is better to hold off on investing until clearer positive trends emerge.
The MACD is positive but contracting, RSI is neutral at 57.723, and moving averages are converging, indicating no clear trend. The stock is trading near its pivot level of 10.053, with resistance at 10.481 and support at 9.625. Overall, the technical indicators suggest a lack of strong momentum.
The company is making progress on restructuring, store refreshes, and talent acquisition. Analysts highlight potential tailwinds such as fiscal stimulus and value-focused consumer behavior.
Recent financials show a significant drop in net income (-52% YoY) and EPS (-50% YoY). Gross margin also declined by 2.31% YoY. Analysts have lowered price targets, and the stock faces headwinds from food disinflation and reduced government benefits.
In Q3 2025, revenue increased by 5.41% YoY to $1.17 billion. However, net income dropped by 52% YoY to $11.6 million, and EPS fell by 50% YoY to $0.12. Gross margin also declined to 30.4%, down 2.31% YoY, indicating profitability challenges.
Analysts have mixed views. Telsey Advisory and Scotiabank maintain Outperform ratings with price targets of $15, while Deutsche Bank and Morgan Stanley have more cautious views with Hold and Equal Weight ratings, respectively. Price targets have been revised downward by multiple firms, reflecting a cautious outlook.
