Zacks Research Reduces Earnings Estimates for Grocery Outlet

Grocery Outlet Holding Corp. (NASDAQ:GO) – Zacks Research decreased their Q1 2026 EPS estimates for Grocery Outlet in a report issued on Wednesday, March 18th. Zacks Research analyst Team now anticipates that the company will post earnings per share of ($0.03) for the quarter, down from their prior forecast of $0.11. The consensus estimate for Grocery Outlet’s current full-year earnings is $0.63 per share. Zacks Research also issued estimates for Grocery Outlet’s Q2 2026 earnings at $0.13 EPS, Q3 2026 earnings at $0.18 EPS, Q4 2026 earnings at $0.10 EPS, FY2026 earnings at $0.39 EPS, Q1 2027 earnings at ($0.02) EPS, Q2 2027 earnings at $0.15 EPS, Q3 2027 earnings at $0.20 EPS, Q4 2027 earnings at $0.11 EPS and FY2027 earnings at $0.45 EPS.

Other analysts have also issued reports about the company. Wells Fargo & Company dropped their target price on Grocery Outlet from $10.50 to $7.00 and set an “equal weight” rating on the stock in a research report on Thursday, March 5th. Craig Hallum downgraded Grocery Outlet from a “strong-buy” rating to a “hold” rating in a research note on Thursday, March 5th. Jefferies Financial Group restated a “hold” rating and issued a $7.00 price target (down from $18.00) on shares of Grocery Outlet in a research report on Thursday, March 5th. DA Davidson set a $8.00 price objective on shares of Grocery Outlet in a report on Thursday, March 5th. Finally, UBS Group reiterated a “neutral” rating and issued a $11.50 price objective on shares of Grocery Outlet in a research report on Thursday, December 18th. Eleven equities research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, Grocery Outlet presently has an average rating of “Reduce” and a consensus target price of $10.68.

Grocery Outlet Stock Up 11.1%

Shares of NASDAQ GO opened at $6.44 on Monday. The stock has a fifty day moving average price of $8.82 and a 200 day moving average price of $11.59. The company has a market cap of $631.60 million, a P/E ratio of -2.81, a P/E/G ratio of 1.69 and a beta of 0.50. The company has a current ratio of 1.37, a quick ratio of 0.32 and a debt-to-equity ratio of 0.49. Grocery Outlet has a 12-month low of $5.66 and a 12-month high of $19.41.

Grocery Outlet (NASDAQ:GO) last announced its quarterly earnings data on Wednesday, March 4th. The company reported $0.19 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.21 by ($0.02). The company had revenue of $1.22 billion for the quarter, compared to analysts’ expectations of $1.23 billion. Grocery Outlet had a negative net margin of 4.80% and a positive return on equity of 5.93%. The firm’s quarterly revenue was up 10.7% on a year-over-year basis. During the same period in the prior year, the firm earned $0.15 earnings per share. Grocery Outlet has set its FY 2026 guidance at 0.450-0.550 EPS.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Royal Bank of Canada grew its position in Grocery Outlet by 5.8% during the 1st quarter. Royal Bank of Canada now owns 122,565 shares of the company’s stock worth $1,713,000 after acquiring an additional 6,736 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in shares of Grocery Outlet by 14.1% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 357,856 shares of the company’s stock worth $5,003,000 after buying an additional 44,214 shares during the period. ProShare Advisors LLC bought a new stake in shares of Grocery Outlet during the 2nd quarter valued at $263,000. PNC Financial Services Group Inc. grew its position in shares of Grocery Outlet by 32.3% during the 2nd quarter. PNC Financial Services Group Inc. now owns 2,942 shares of the company’s stock worth $37,000 after buying an additional 719 shares during the period. Finally, Geode Capital Management LLC grew its holdings in Grocery Outlet by 41.7% during the second quarter. Geode Capital Management LLC now owns 2,390,051 shares of the company’s stock valued at $29,688,000 after purchasing an additional 702,807 shares during the period. Institutional investors own 99.87% of the company’s stock.

Insider Buying and Selling

In related news, Director Erik D. Ragatz bought 50,000 shares of the firm’s stock in a transaction on Thursday, March 19th. The stock was bought at an average price of $5.75 per share, with a total value of $287,500.00. Following the purchase, the director directly owned 526,500 shares of the company’s stock, valued at approximately $3,027,375. This represents a 10.49% increase in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, CEO Jason J. N. Potter acquired 286,097 shares of Grocery Outlet stock in a transaction that occurred on Thursday, March 19th. The stock was acquired at an average cost of $5.90 per share, with a total value of $1,687,972.30. Following the purchase, the chief executive officer owned 574,366 shares in the company, valued at $3,388,759.40. The trade was a 99.25% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last quarter, insiders have bought 787,097 shares of company stock worth $4,679,132 and have sold 89,493 shares worth $524,431. 4.50% of the stock is owned by corporate insiders.

Grocery Outlet News Summary

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

• Positive Sentiment: Company insiders bought stock this week — the CEO purchased roughly $1.69M of shares and a director purchased about $198.9k, which often signals management confidence and can support the share price. Insider Buying: Grocery Outlet (NASDAQ:GO) CEO Acquires $1,687,972.30 in Stock Grocery Outlet (NASDAQ:GO) Director Acquires $198,882.45 in Stock
• Neutral Sentiment: Short-interest data reported for March appears anomalous (showing 0 shares and NaN changes, with a 0.0 days short-interest ratio). That could mean very low short interest or a reporting glitch — unclear impact until clarified by exchanges/brokers.
• Negative Sentiment: Multiple law firms have announced class-action investigations and investor-alerts alleging misrepresentations (store expansion and related disclosures), and they are soliciting lead plaintiffs with May deadlines — this raises legal risk, potential litigation costs, and investor uncertainty. GO CLASS ACTION NOTICE: Faruqi & Faruqi, LLP GO Investor Alert: Levi & Korsinsky Bronstein, Gewirtz & Grossman LLC Notice
• Negative Sentiment: Research notes from Zacks flag lower expected earnings and downside risk to future EPS projections, which can pressure sentiment given Grocery Outlet’s recent EPS miss and modest FY 2026 guidance. Zacks Research Predicts Lower Earnings for Grocery Outlet Zacks Research Weighs in on Grocery Outlet FY2028 Earnings

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.