Recession Resistant Investing: 10 Best Grocery Stocks To Buy Now

7. Grocery Outlet Holding Corp. (NASDAQ:GO)

Number of Hedge Fund Holders: 33

Grocery Outlet Holding Corp. (NASDAQ:GO) is a retailer that sells fresh food products and name-brand consumables through an elaborate network of independently operated stores. Its product offerings include fresh meat and seafood, staples, refrigerated and frozen food, and other items.

On April 16, Jefferies analyst Corey Tarlowe upgraded the rating on Grocery Outlet Holding Corp. (NASDAQ:GO) and set a price target of $18.00. The analyst supported the positive rating with the company’s potential for recovery and growth. Grocery Outlet Holding Corp. (NASDAQ:GO) holds a competitive market advantage because of its position as a low-price grocery store. This holds especially true in economic downturns, where the company could outperform its competitors.

The analyst further opined that although the company has experienced challenges with enterprise-wide technology issues in the past, its new management is taking strategic initiatives to resolve these problems and streamline its operations. This presents an opportunity for upside potential. Tarlowe also stated that management’s focus on expanding units in existing markets and solid traffic trends are anticipated to support future growth, with expected improvements in EBITDA margins and same-store sales over the coming few years.