Q2 EPS Estimates for Grocery Outlet Lifted by Zacks Research

Key Points

• Zacks Research raised Grocery Outlet’s Q2 2027 EPS estimate to $0.19 from $0.14, while projecting $0.52 for FY2027 and $0.20 for Q2 2028.
• Grocery Outlet recently beat quarterly expectations, reporting $0.20 EPS versus $0.13 expected and $1.19 billion in revenue versus $1.17 billion forecast, though year-over-year revenue growth was only 1.1%.
• Analyst sentiment remains cautious: twelve analysts rate the stock Hold and two rate it Sell, giving Grocery Outlet an average “Reduce” rating and a $10.59 average price target.

Grocery Outlet Holding Corp. (NASDAQ:GO - Free Report) - Stock analysts at Zacks Research upped their Q2 2027 EPS estimates for shares of Grocery Outlet in a research note issued to investors on Wednesday, August 26th. Zacks Research analyst Team now forecasts that the company will post earnings per share of $0.19 for the quarter, up from their prior forecast of $0.14. The consensus estimate for Grocery Outlet's current full-year earnings is $0.42 per share. Zacks Research also issued estimates for Grocery Outlet's Q4 2027 earnings at $0.13 EPS, FY2027 earnings at $0.52 EPS and Q2 2028 earnings at $0.20 EPS.

A number of other brokerages have also weighed in on GO. Morgan Stanley boosted their target price on shares of Grocery Outlet from $7.00 to $11.00 and gave the company an "equal weight" rating in a research note on Thursday, August 13th. DA Davidson raised their price objective on shares of Grocery Outlet from $9.00 to $12.00 and gave the stock a "neutral" rating in a report on Thursday, August 13th. Telsey Advisory Group restated a "market perform" rating on shares of Grocery Outlet in a research report on Thursday, August 13th. Roth Capital reaffirmed a "neutral" rating and set a $10.00 target price on shares of Grocery Outlet in a report on Thursday, August 13th. Finally, TD Cowen reiterated a "hold" rating on shares of Grocery Outlet in a research report on Tuesday, August 18th. Twelve research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the company has an average rating of "Reduce" and an average target price of $10.59.

Grocery Outlet Stock Performance

Shares of GO stock opened at $12.17 on Monday. The company has a current ratio of 1.29, a quick ratio of 0.30 and a debt-to-equity ratio of 0.60. Grocery Outlet has a 12-month low of $5.66 and a 12-month high of $18.79. The stock has a market capitalization of $1.21 billion, a P/E ratio of -3.14, a P/E/G ratio of 8.46 and a beta of 0.65. The firm's 50 day moving average is $10.15 and its 200 day moving average is $8.78.

Grocery Outlet (NASDAQ:GO - Get Free Report) last released its quarterly earnings data on Wednesday, August 12th. The company reported $0.20 earnings per share for the quarter, beating the consensus estimate of $0.13 by $0.07. The firm had revenue of $1.19 billion during the quarter, compared to analysts' expectations of $1.17 billion. Grocery Outlet had a negative net margin of 8.04% and a positive return on equity of 5.84%. The firm's quarterly revenue was up 1.1% on a year-over-year basis. During the same period in the previous year, the company earned $0.23 earnings per share.

Insiders Place Their Bets

In other news, insider Paul Blaine Miller purchased 10,000 shares of the stock in a transaction on Thursday, June 18th. The shares were acquired at an average price of $9.37 per share, with a total value of $93,700.00. Following the completion of the acquisition, the insider directly owned 59,171 shares of the company's stock, valued at $554,432.27. This trade represents a 20.34% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is available through the SEC website. Insiders have purchased a total of 23,000 shares of company stock worth $228,400 over the last quarter. 5.60% of the stock is owned by insiders.

Institutional Trading of Grocery Outlet

Several institutional investors and hedge funds have recently modified their holdings of GO. T. Rowe Price Investment Management Inc. boosted its holdings in Grocery Outlet by 54.0% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 15,763,945 shares of the company's stock worth $159,216,000 after buying an additional 5,528,722 shares during the period. BlackRock Inc. bought a new stake in Grocery Outlet during the second quarter valued at about $152,440,000. Vanguard Group Inc. raised its holdings in Grocery Outlet by 1.9% during the fourth quarter. Vanguard Group Inc. now owns 11,255,936 shares of the company's stock valued at $113,685,000 after acquiring an additional 213,325 shares during the period. Mackenzie Financial Corp lifted its position in shares of Grocery Outlet by 0.5% in the fourth quarter. Mackenzie Financial Corp now owns 4,709,721 shares of the company's stock valued at $47,757,000 after acquiring an additional 22,418 shares in the last quarter. Finally, Dimensional Fund Advisors LP boosted its stake in shares of Grocery Outlet by 5.0% in the third quarter. Dimensional Fund Advisors LP now owns 4,619,851 shares of the company's stock worth $74,149,000 after acquiring an additional 221,693 shares during the period. 99.87% of the stock is currently owned by institutional investors.

Grocery Outlet News Summary

Here are the key news stories impacting Grocery Outlet this week:

• Positive Sentiment: Higher full-year and long-term EPS forecasts: Zacks Research raised its FY2026 EPS estimate to $0.41 from $0.37 and its FY2028 estimate to $0.56 from $0.50. Estimates for Q1 2027 and Q1 2028 were also increased, suggesting analysts see potential for earnings improvement beyond the immediate outlook. Zacks Research estimate changes
• Positive Sentiment: Recent earnings beat supports sentiment: Grocery Outlet’s latest quarterly results exceeded consensus estimates for both earnings and revenue, with EPS of $0.20 versus expectations of $0.13 and revenue of $1.19 billion versus $1.17 billion. However, revenue growth was modest at 1.1% year over year. Grocery Outlet earnings report
• Neutral Sentiment: Options activity is drawing attention: Recent movements in the options market have prompted investors to watch GO for a potential increase in volatility or a sharp move. Options positioning can signal heightened expectations, but it does not establish the direction of the stock’s next move. Is the Options Market Predicting a Spike in Grocery Outlet Holding Stock?
• Negative Sentiment: Near-term earnings estimates were reduced: Zacks cut its Q3 2026 EPS forecast to $0.11 from $0.16 and its Q3 2027 estimate to $0.16 from $0.18. These reductions indicate continued uncertainty about Grocery Outlet’s near-term profitability.
• Negative Sentiment: Retail-sector caution remains a risk: Recent market commentary notes that retailers are facing consumer price anxiety and pressure on discretionary spending. Grocery Outlet’s negative net margin and low quick ratio add to the importance of sustained operational improvement.

Grocery Outlet Company Profile

Grocery Outlet Holding Corp. NASDAQ: GO is a specialty discount retailer that offers consumers deeply discounted groceries by purchasing excess inventory, closeouts, and overstocks from manufacturers and distributors. Headquartered in Emeryville, California, the company operates two primary banners—Grocery Outlet and Fresh2Go—with a combined footprint of more than 400 stores. Its product assortment spans fresh produce, meat, dairy, bakery items, household staples, natural and organic offerings, and select specialty products, all sold at significant markdowns compared to conventional supermarkets.

The company's unique buying model enables it to source inventory through opportunistic purchases of surplus freight, discontinued items, and closeout deals, which it then passes on as savings to its customers.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.