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Investment overview
I wrote about Grocery Outlet Holding (NASDAQ:GO) previously (14 March 2024) with a sell rating as I was very negative on the potential operational impact from the
Grocery Outlet Holding: Remain Sell Rated As SSS Outlook Is Still Uncertain
Summary
- Grocery Outlet Holding reported a disappointing quarter, with EPS well below estimates and a significant decline in EBIT margin.
- The performance of same-store sales in Q1 was strong, but the real test will come in the coming quarters.
- There are risks to GO stock's FY24 guidance, including operational challenges, macro headwinds, increased competition, and potential price reductions by larger grocery chains.
I am an individual investor that is now fully focus on managing my own capital that I have saved up over the years. My investing background spreads across a wide spectrum as I believe there are merits to each approach, for instance: Fundamental investing [Bottoms-up etc.], Technical investing [historical charts analysis], and to some extend momentum investing [share price reaction post earnings etc.]. Over the years, I have used the positive aspects of each approach to hone my investing process. The reason to write on SeekingAlpha is to use this platform as a tracker for my investing ideas performance, and also to connect with like-minded investors that have the same investing interest.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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