Long Position on GO @ $42.00 on 7/6/2020 (Fundamentals)

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 dairy and deli, produce, and fresh meat and seafood products, as well as grocery, frozen, beer and wine, general merchandise, and health and beauty care products; and natural, organic, specialty, and healthy products.

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

The company was founded in 1946 and is headquartered in Emeryville, California.

Grocery Outlet Holding reported 1st Quarter March 2020 earnings of $0.36 per share on revenue of $760.3 million. The consensus earnings estimate was $0.32 per share on revenue of $758.2 million.

Shares have broken out of its "bullish flag" formation. As restaurants begin to close once more due to COVID-19, sales at grocery stores should rise. This should move share prices higher.

Entry point: $42.00

52-week trade range: $28.11 - $47.58

Stop/Loss: $40.00

Target Price: $46.20

Updates

8/5/2020 11:53:49 AM

GO closed at $44.60

Position closed on 8/5/2020 at price of $44.60 with a 6.19% gain in 30 days.

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