Are You a Value Investor? This 1 Stock Could Be the Perfect Pick
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
Grocery Outlet Holding Corp. (GO)
Founded in 1946 and headquartered in Emeryville, CA, Grocery Outlet Holding Corp. is a high-growth, extreme value retailer of quality, name-brand consumables and fresh products that are sold through a network of independently owned and operated stores. Notably, the company's stores offer a fun, treasure hunt shopping experience in an easy-to-navigate, “small-box” format of size 15,000-20,000 square feet. The company offers discounted, overstocked and closeout products from name brand and private label suppliers. Stores are operated by Entrepreneurial Independent Operators (“IOs”).
GO boasts a Value Style Score of B and VGM Score of B, and holds a Zacks Rank #2 (Buy) rating. Shares of Grocery Outlet Holding Corp. are trading at a forward earnings multiple of 23.5X, as well as a PEG Ratio of 2.2, a Price/Cash Flow ratio of 15.9X, and a Price/Sales ratio of 0.7X.
Many value investors pay close attention to a company's earnings as well. For GO, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.03 to $1.18 per share for 2024. Per share GO boasts an average earnings surprise of 17%.
Investors should take the time to consider GO for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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Grocery Outlet Holding Corp. (GO) : Free Stock Analysis Report
