Investors in Grocery Outlet Holding (NASDAQ:GO) have unfortunately lost 64% over the last three years
While not a mind-blowing move, it is good to see that the Grocery Outlet Holding Corp. (NASDAQ:GO) share price has gained 20% in the last three months. But over the last three years we've seen a quite serious decline. Tragically, the share price declined 64% in that time. So the improvement may be a real relief to some. While many would remain nervous, there could be further gains if the business can put its best foot forward.
Now let's have a look at the company's fundamentals, and see if the long term shareholder return has matched the performance of the underlying business.
We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
Grocery Outlet Holding saw its EPS decline at a compound rate of 33% per year, over the last three years. This change in EPS is reasonably close to the 29% average annual decrease in the share price. That suggests that the market sentiment around the company hasn't changed much over that time, despite the disappointment. In this case, it seems that the EPS is guiding the share price.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here..
Investors in Grocery Outlet Holding had a tough year, with a total loss of 38%, against a market gain of about 13%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 10% per year over five years. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. It's always interesting to track share price performance over the longer term. But to understand Grocery Outlet Holding better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Grocery Outlet Holding you should be aware of.
Grocery Outlet Holding is not the only stock that insiders are buying. For those who like to find lesser know companies this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
39 minutes ago
- Yahoo
A crucial jobs report meets a stock market at all-time highs: What to know this week
The S&P 500 (^GSPC) is back at an all-time high for the first time since February as optimism around Federal Reserve interest rate cuts and fading fears of tariffs have driven stocks higher. In the final full trading week of June, the S&P 500 rose 3.5%, while the Nasdaq Composite (^IXIC) rose more than 4.1%. Both indexes ended the week at all-time highs. Meanwhile, the Dow Jones Industrial Average (^DJI) added about 3.8%. The June jobs report will headline the first week of July. Fresh readings on job openings and wage data, as well as manufacturing and services activity, will also be in focus for investors. Investors will also have a close eye on any updates regarding President Trump's various tariff pauses ahead of the administration's self-imposed tariff delay deadline on July 9. Markets will close at 1 p.m. on Thursday and remain shut on Friday for the Fourth of July. Markets are increasingly optimistic that the Federal Reserve may cut interest rates soon. As of Friday, markets were pricing in an 18.6% chance the central bank cuts interest rates at its next meeting in late July, up from a 14.5% chance seen last week, per the CME FedWatch Tool. Meanwhile, probability investors are placing on a cut by the end of September has surged, with markets now pricing in a 93% chance the central bank will have lowered rates by then, up from a 70% chance seen just a week ago. The shift comes as several Fed officials have alluded to the possibility of cutting interest rates as soon as the central bank's July meeting. In a speech on June 23, Federal Reserve governor Michelle Bowman noted that although the labor market is showing signs of strength, it "appears to be less dynamic." "With inflation on a sustained trajectory toward 2%, softness in aggregate demand, and signs of fragility in the labor market, I think that we should put more weight on downside risks to our employment mandate going forward," Bowman said. However, Fed Chair Jerome Powell has been more cautious about interest rate cuts. While testifying in front of House lawmakers last week, Powell stressed that the central bank is "well-positioned to wait" before moving interest rates. EY chief economist Greg Daco told Yahoo Finance he believes the Fed will likely cut in September. "By then we will have seen more demand erosion, we will have seen a labor market that unfortunately has slowed and income growth as a result has slowed, leading to slower consumer spending activity," Daco said. Signs of cooling in the labor market have been a key part of the brewing debate over Fed policy and will put further emphasis on the incoming June jobs report, due out for release at 8:30 a.m. ET on Thursday. Economists expect the report to show 116,00 nonfarm payrolls were added, a move lower from the 139,000 seen in May. The unemployment rate is anticipated to have moved up to 4.3% from 4.2% the month prior. "We expect the moderation in hiring to continue," Wells Fargo's team of economists led by Jay Bryson wrote in a note to clients on Friday. " Demand for new workers remains muted amid still-elevated uncertainty, restrictive monetary policy and the ongoing federal government hiring freeze." The S&P 500's most recent record close comes as the market has rallied more than 23% from its April 8 bottom. Now, strategists believe the market's largest tariff fears are behind investors. Economic forecasts have once again begun reverting higher, along with projections for corporate earnings this year. And Wall Street strategists are becoming incrementally bullish on the outlook from here. As our chart below shows, the S&P 500 has chugged past a slew of headwinds to hit a record high this year. "The market still does tend to have a bullish sentiment to it," Charles Schwab head of trading and derivatives strategist Joe Mazzola told Yahoo Finance. "So I think you're seeing investors looking for those opportunities on pullbacks to buy in." Weekly Calendar Earnings: No notable earnings releases. Economic data: MNI Chicago PMI, June (42.7 expected, 40.5 prior); Dallas Fed manufacturing activity Earnings: Constellation Brands (STZ) Economic data: JOLTS Job Openings, May (7.26 million expected, 7.39 previously); ISM manufacturing, June (48.8 expected, 48.5 prior); Construction spending month-over-month, May (+0.1% expected, -0.4% prior); Dallas Fed services activity (-10.1 prior); S&P Global US manufacturing PMI, June (52 expected, 52 prior) Wednesday Earnings: No notable earnings. Economic data: MBA Mortgage Applications, week ending June 27 (+1.1% previously); ADP employment change, June (90,000 expected, 37,000 expected); S&P Global US services PMI, May final (52.3 expected, 52.3 prior); Challenger job cuts year-over-year, May (+62.7% prior) Earnings: No notable earnings Economic data: Nonfarm payrolls, June (+110,000 expected, +129,000 previously); Unemployment rate, June (4.3% expected, 4.2% previously); Average hourly earnings, month over month, June (+0.3% expected, +0.4% previously); Average hourly earnings, year over year, June (+3.8% expected, +3.9% previously); Average weekly hours worked, June (34.3 expected, 34.3 previously); Labor force participation rate, June (62.5% expected, 62.4% previously); Initial jobless claims week ending June 28 (240,000 expected, 236,000 prior); Continuing claims week ending May 24 (1.91 million prior); Nonfarm productivity, first quarter final (-0.8% expected, -0.8% prior); Unit labor costs, first quarter final (+5.7% expected, +5.7% prior); S&P Global US Composite PMI, June final (52.8 prior); ISM Services index, June (50.7 expected, 49.4prior); Federal Reserve Beige Book released; Durable goods orders, May final (16.4% prior) Markets are closed for the Fourth of July. Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer.
Yahoo
an hour ago
- Yahoo
What Does Palo Alto Networks, Inc.'s (NASDAQ:PANW) Share Price Indicate?
Let's talk about the popular Palo Alto Networks, Inc. (NASDAQ:PANW). The company's shares received a lot of attention from a substantial price increase on the NASDAQGS over the last few months. The company is now trading at yearly-high levels following the recent surge in its share price. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company's outlook is already priced into the stock. However, what if the stock is still a bargain? Let's examine Palo Alto Networks's valuation and outlook in more detail to determine if there's still a bargain opportunity. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. The stock seems fairly valued at the moment according to our valuation model. It's trading around 15% below our intrinsic value, which means if you buy Palo Alto Networks today, you'd be paying a reasonable price for it. And if you believe the company's true value is $235.49, then there's not much of an upside to gain from mispricing. Furthermore, Palo Alto Networks's low beta implies that the stock is less volatile than the wider market. See our latest analysis for Palo Alto Networks Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. Palo Alto Networks' earnings over the next few years are expected to increase by 86%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value. Are you a shareholder? PANW's optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven't considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value? Are you a potential investor? If you've been keeping tabs on PANW, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it's worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. Every company has risks, and we've spotted 1 warning sign for Palo Alto Networks you should know about. If you are no longer interested in Palo Alto Networks, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
Cantor Fitzgerald Raised The PT on Lam Research (LRCX), Maintains a Buy Rating
Lam Research Corporation (NASDAQ:LRCX) is one of the . On June 24, Cantor Fitzgerald raised the firm's price target on Lam Research Corporation (NASDAQ:LRCX) from $90 to $115, while keeping an Overweight rating on the stock. The increased price target is based on the firm's research which suggests a modestly improved wafer fab equipment market in 2025. The firm noted that Cantor Fitzgerald's industry checks suggest a modest improvement in the WFE sector for calendar year 2025, primarily driven by demand from domestic China. This suggests that 2026 will be another year of growth for the sector, thereby presenting growth opportunities for Lam Research Corporation (NASDAQ:LRCX) as well. Cantor Fitzgerald believes the sector is largely immune to tariff-related issues and expects the consensus estimates for the semiconductor equipment group to move significantly higher. A technician operating an automated semiconductor processing machine with laser accuracy. In Q3 2024, the company posted revenue of $4.72 billion, reflecting a 24.43% year-over-year increase. The revenue topped estimates by $79.9 million with EPS of $1.40 exceeding expectations by $0.04. China remained a major contributor to Lam Research Corporation (NASDAQ:LRCX)'s revenue, with China's revenue forming 31% of its total revenue. Lam Research Corporation (NASDAQ:LRCX) is a leading global supplier of wafer fabrication equipment and services used in the semiconductor industry to manufacture integrated circuits. While we acknowledge the potential of LRCX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
