Long Position on GO @ $32.20 on 3/18/2020 (Momentum)

Grocery Outlet Holding Corp. (GO) owns and operates a chain of grocery stores in the United States.

The company offers products in various categories, such as grocery, dairy and deli, produce, refrigerated and frozen, floral, beer and wine, general merchandise, and health and beauty care, as well as fresh meat and seafood; and natural, organic, specialty, and healthy products.

As of December 28, 2019, it had 347 stores, which included 342 independent operated stores and 5 company operated stores in California, Washington, Oregon, Pennsylvania, Idaho, and Nevada. 

On November 11th, Grocery Outlet reported 3rd Quarter September 2019 earnings of $0.22 per share on revenue of $652.5 million. The consensus earnings estimate was $0.19 per share on revenue of $632.8 million. 

The company said it now expects 2019 non-GAAP earnings of $1.73 to $1.74 per share with revenue of more than $2.55 billion. The company's previous guidance was earnings of $0.68 to $0.71 per share on revenue of $2.50 billion to $2.53 billion and the current consensus earnings estimate is $0.71 per share on revenue of $2.54 billion for the year ending December 31, 2019.

Entry Point: $32.20

Stop Loss: $30.00

Trading Range: $27.75 to $47.58

Target Price: $35.90

Updates

4/6/2020 12:51:08 PM

GO closed at $36.40

Position closed on 4/6/2020 at price of $36.40 with a 13.04% gain in 19 days.

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