Grocery Outlet Holding Corp. operates as a retailer of consumables and fresh products sold through independently operated stores in the United States. Its stores offer products in various categories, such as dairy and deli, produce, floral, fresh meat, seafood products, grocery, general merchandise, health and beauty care, frozen food, beer and wine, and ethnic products. The company was founded in 1946 and is headquartered in Emeryville, California.

Grocery Outlet Holding Corp.

In trading on Monday, general contractors & builders shares were relative laggards, down on the day by about 2.2%. Helping drag down the group were shares of Hovnanian Enterprises, off about 5.2% and shares of Lennar down about 4% on the day.
Also lagging the market Monday are grocery & drug stores shares, down on the day by about 1.5% as a group, led down by Grocery Outlet Holding, trading lower by about 5.5% and The Chefs Warehouse, trading lower by about 3.6%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Monday Sector Laggards: General Contractors & Builders, Grocery & Drug Stores

Investors interested in Consumer Products - Staples stocks are likely familiar with Grocery Outlet Holding Corp. (GO) and Church & Dwight (CHD). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Grocery Outlet Holding Corp. is sporting a Zacks Rank of #2 (Buy), while Church & Dwight has a Zacks Rank of #3 (Hold). This means that GO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
GO currently has a forward P/E ratio of 22.87, while CHD has a forward P/E of 27.22. We also note that GO has a PEG ratio of 3.15. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CHD currently has a PEG ratio of 3.90.
Another notable valuation metric for GO is its P/B ratio of 1.47. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, CHD has a P/B of 5.24.
Based on these metrics and many more, GO holds a Value grade of B, while CHD has a Value grade of D.
GO is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that GO is likely the superior value option right now.
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GO vs. CHD: Which Stock Should Value Investors Buy Now?

Mission Produce, Inc. AVO posted third-quarter fiscal 2025 results, which reflected higher profits and a sales beat. Both earnings and revenues grew on a year-over-year basis. Quarterly results stemmed from the company’s strong execution and vertically integrated model, ensuring consistent supply and solid financial performance. Despite market volatility, AVO delivered $34 million in operating cash flow in the third quarter and expects further momentum in the fourth quarter.
This Zacks Rank #3 (Hold) company’s shares have risen 11.9% in the past three months compared with the industry’s 5.3% growth.
AVO Stock's Price Performance
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An Insight Into AVO’s Quarterly Performance
The company posted adjusted quarterly earnings of 26 cents per share that significantly topped the Zacks Consensus Estimate of 13 cents. Also, the bottom-line figure improved from adjusted earnings of 23 cents reported in the year-ago quarter.
Mission Produce, Inc. Price, Consensus and EPS Surprise
Total revenues increased 10% to $357.7 million and beat the Zacks Consensus Estimate of $329 million. The year-over-year increase in the top line was mainly backed by the Marketing & Distribution segment, where avocado volume grew 10%, which was somewhat offset by a decline in average per-unit avocado sales prices of 5%. The volume and pricing shifts reflected stronger Peruvian production from favorable weather and increased Mexican supply compared to last year’s harvest disruptions.
Gross profit rose 22% year over year to $45.1 million, with margin improving 120 basis points to 12.6%. The growth was driven by the International Farming segment, supported by higher avocado yields at company-owned farms.
Selling, general and administrative expenses for the third quarter jumped 19% year over year to $24.1 million, mainly due to the elevated employee-related costs with incentive and performance-based stock compensation, as well as increased statutory profit sharing in the International Farming segment tied to strong performance. Adjusted EBITDA rose 3% year over year to $1.1 million, thanks to higher avocado production in the International Farming segment.
AVO’s Q3 Business Segment Results
Marketing & Distribution: Net sales in this segment rose 7% to $344.1 million, backed by the avocado pricing and volume dynamics. However, the segment’s adjusted EBITDA was $20 million, down 25.3% from last year, due to normalized per-unit avocado gross margins versus the unusually high levels seen in the prior year.
International Farming: Sales in the International Farming segment for the third quarter jumped 79% year over year to $49 million. The strong results were driven by higher yields from owned avocado orchards and increased third-party packing and cooling services.
Adjusted EBITDA for the segment rose 163% to $12.1 million as compared to $4.6 million reported in the year-ago quarter.
Blueberries: Sales in the Blueberries segment jumped 181% year over year to $4.5 million in the fiscal third quarter, backed by the blueberry pricing and volume dynamics. The segment’s adjusted EBITDA surged 400% to $0.5 million, owing to blueberry pricing and volume dynamics.
Mission Produce’s Financial Snapshot
Mission Produce ended the quarter with $43.7 million of cash, $128.5 million of long-term debt (excluding current maturities) and $568.7 million of shareholders’ equity, excluding non-controlling interest of $31.8 million. As of July 31, 2025, inventory rose 13.4% year over year to $103.4 million.
Net cash used in operating activities was $21.4 million for the nine months ended July 31, 2025.
Capital expenditures were $39.8 million for the nine months ended July 31, 2025, which consisted mainly of developing the avocado orchard, maintaining the pre-production orchard, land improvements, packhouse construction in Guatemala, pre-production land development and blueberry plant cultivation in Peru.
What to Expect From AVO in Q4?
Moving forward, management expects Avocado volumes to rise about 15% year over year in the fourth quarter of fiscal 2025, driven by abundant Peruvian supply and a larger-than-expected Mexican crop due to favorable weather. Exports from Mission Produce’s Peruvian farms are forecasted to be between 105 and 110 million pounds, up from 43 million pounds in fiscal 2024, with 48 million pounds already sold by the end of the third quarter of fiscal 2025.
Average avocado pricing is expected to decline 20-25% versus $1.90 per pound last year, reflecting higher market availability. Peru’s blueberry harvest will also ramp up, boosting volumes from owned farms, though lower prices may temper revenue impact. Total capital expenditures for fiscal 2025 are expected to range between $50 million and $55 million.
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Post Holdings, Inc. POST, a consumer packaged goods holding company, currently sports a Zacks Rank #1 (Strong Buy). POST has a trailing four-quarter earnings surprise of 21.43%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Post Holdings’ current financial-year sales and earnings implies growth of 3.1% and 11%, respectively, from the year-ago reported numbers.
The TJX Companies, Inc. TJX, the leading off-price apparel and home fashion retailer in the United States and worldwide, currently carries a Zacks Rank #2 (Buy). TJX has a trailing four-quarter earnings surprise of 5.4%, on average.
The Zacks Consensus Estimate for The TJX Companies’ current financial-year sales and earnings calls for growth of 5.4% and 7%, respectively, from the year-ago reported numbers.
Grocery Outlet Holding Corp. GO, an extreme value retailer of quality, name-brand consumables and fresh products, currently carries a Zacks Rank #2. GO has a trailing four-quarter earnings surprise of 28.2%, on average.
The Zacks Consensus Estimate for Grocery Outlet’s current financial-year sales and earnings suggests growth of 8.3% and 1.3%, respectively, from the year-ago reported numbers.
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AVO Q3 Earnings Beat, International Farming Unit Sales Up 79% Y/Y

Investors with an interest in Consumer Products - Staples stocks have likely encountered both Grocery Outlet Holding Corp. (GO) and Church & Dwight (CHD). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Grocery Outlet Holding Corp. is sporting a Zacks Rank of #2 (Buy), while Church & Dwight has a Zacks Rank of #3 (Hold). This means that GO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
GO currently has a forward P/E ratio of 24.12, while CHD has a forward P/E of 26.63. We also note that GO has a PEG ratio of 3.33. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CHD currently has a PEG ratio of 3.82.
Another notable valuation metric for GO is its P/B ratio of 1.54. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, CHD has a P/B of 5.12.
Based on these metrics and many more, GO holds a Value grade of B, while CHD has a Value grade of D.
GO is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that GO is likely the superior value option right now.
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GO or CHD: Which Is the Better Value Stock Right Now?

BJ’s Wholesale Club Holdings, Inc. BJ reported mixed results for the second quarter of fiscal 2025. While revenues came in below the Zacks Consensus Estimate, earnings exceeded expectations. Both figures improved year over year, supported by robust membership growth and traffic gains. Management raised its fiscal 2025 earnings guidance.
BJ’s Second-Quarter Insights
BJ’s Wholesale Club reported adjusted earnings of $1.14 per share, which came ahead of the Zacks Consensus Estimate of $1.10 and increased from $1.09 reported in the year-ago period.
This operator of membership warehouse clubs generated total revenues of $5,380.2 million, which rose 3.4% from the year-ago quarter’s level but missed the consensus mark of $5,463 million. Net sales increased 3.2% to $5,256.9 million, while membership fee income jumped 9% to $123.3 million. BJ reached a milestone of 8 million members in the quarter, supported by a 90% renewal rate and higher-tier penetration.
Total comparable club sales during the quarter decreased 0.3% year over year due to lower fuel retail prices. Excluding the impact of gasoline sales, comparable club sales jumped 2.3%, led by robust traffic, but came below our estimate of a 3.2% increase. Digital initiatives continued to pay off, with digitally enabled comparable sales jumping 34%, building on a two-year stack of 56% growth.
BJ's Wholesale Club Holdings, Inc. Price, Consensus and EPS Surprise
Taking a Look at BJ’s Margins
Gross profit increased to $1,006.2 million from $956.6 million in the year-ago period. The merchandise gross margin rate, which excludes gasoline sales and membership fee income, expanded 10 basis points from the year-ago quarter’s level.
Operating income jumped 6.3% year over year to $216.5 million, while the operating margin, as a percentage of total revenues, expanded 10 basis points to 4%. We note that adjusted EBITDA increased 8% to $303.9 million during the quarter, while the adjusted EBITDA margin increased 20 basis points to 5.6%. We anticipated 10 basis points of expansion in EBITDA margins.
Selling, general and administrative (SG&A) expenses rose 4.8% from the year-ago quarter to $786.4 million. This reflects higher labor and occupancy costs stemming from the new club and gas station openings. As a percentage of total revenues, SG&A expenses deleveraged 20 basis points to 14.6%. We anticipated a deleverage of 10 basis points.
BJ’s Wholesale Financial Snapshot
BJ’s Wholesale Club ended the quarter with cash and cash equivalents of $47.3 million. The long-term debt was $399 million, while stockholders’ equity was $2,099.1 million.
Net cash provided by operating activities and adjusted free cash flow totaled $249.9 million and $87.3 million, respectively, for the 13 weeks ended on Aug. 2, 2025. As part of its share repurchase program, the company bought back 375,000 shares worth $41.2 million in the quarter, with $952.6 million still available under its buyback authorization.
Here’s What BJ Guided
BJ’s Wholesale Club continues to expect fiscal 2025 comparable club sales, excluding gasoline sales, to increase between 2% and 3.5% year over year. Management raised its adjusted earnings forecast to $4.20 to $4.35 per share compared with the prior view of $4.10-$4.30. The company reported earnings of $4.05 in fiscal 2024. The company continues to foresee capital expenditures of about $800 million for fiscal 2025, with the target to open 25 to 30 new clubs over the next two fiscal years.
Shares of this Zacks Rank #3 (Hold) company rose 28.3% in the past year against the industry’s decline of 7%.
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Post Holdings POST, a consumer-packaged goods holding company, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
POST delivered a trailing four-quarter earnings surprise of 21.4%, on average. The Zacks Consensus Estimate for Post Holdings’ current financial-year sales and earnings implies growth of 3.1% and 10.9%, respectively, from the year-ago reported numbers.
Grocery Outlet GO, an extreme value retailer of quality, name-brand consumables and fresh products, carries a Zacks Rank #2 (Buy) at present. GO delivered a trailing four-quarter earnings surprise of 28.2%, on average.
The Zacks Consensus Estimate for Grocery Outlet’s current financial-year sales indicates growth of around 8.3% from the year-ago reported numbers.
Ollie's Bargain Outlet Holdings OLLI is a value retailer of brand-name merchandise at drastically reduced prices and currently carries a Zacks Rank #2. OLLI delivered a trailing four-quarter earnings surprise of 2%, on average.
The Zacks Consensus Estimate for Ollie's current fiscal-year sales and earnings implies growth of 14.3% and 14%, respectively, from the year-ago reported numbers.
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BJ's Wholesale Q2 Earnings Beat, Membership Hits 8M, Outlook Raised

Walmart Inc. (WMT) reported second-quarter fiscal 2026 results, with the top line beating the Zacks Consensus Estimate while the bottom line missing the same. Both metrics showed year-over-year growth. Management raised its fiscal 2026 net sales and adjusted earnings per share (EPS) guidance.
The company continues to balance innovation with disciplined execution, showcasing resilience in an uncertain consumer environment. Notably, digital channels, advertising and membership income played pivotal roles in driving momentum, while strategic investments and one-time expenses weighed on operating profit.
Walmart’s Quarterly Metrics: Key Insights
WMT’s adjusted earnings of 68 cents per share inched up 1.5% from the year-ago period’s 67 cents. The metric missed the Zacks Consensus Estimate of 73 cents.
Walmart Inc. Price, Consensus and EPS Surprise
Walmart’s total revenues rose 4.8% year over year to $177.4 billion, which beat the consensus mark of $175.5 billion. On a constant-currency basis, revenues grew 5.6%, reflecting strong performance across all business segments.
Walmart’s Global e-commerce sales surged 25% as the digital mix increased across all segments. This upside can be attributed to store-fulfilled pickup and delivery services. The company witnessed a 15.3% increase in membership income globally. WMT’s global advertising business advanced 46%.
The consolidated gross profit margin expanded 4 bps to 24.5%, driven by Walmart U.S. Margin growth. The upside was backed by strong inventory management in the United States and improved business mix, though partially impacted by unfavorable merchandise category mix.
Operating expenses deleveraged 64 bps, caused by higher self-insured liability claims in the United States, along with technology investments and wage increases at Sam’s Club across the United States, Canada and Mexico. This was partially offset by improved international leverage. On an adjusted basis, operating expenses deleveraged 35 bps, excluding discrete legal and reorganization charges.
The company’s operating income decreased 8.2% year over year to $7.3 billion, affected by discrete legal & restructuring costs. Adjusted operating income (cc) is up 0.4%.
Decoding Walmart’s Segmental Show
Walmart U.S.: The segment’s net sales grew 4.8% year over year to $120.9 billion. Strong sales performance was driven by growth in grocery and health & wellness, along with low single-digit gains in general merchandise. U.S. comp sales, excluding fuel, were up 4.6%, fueled by transaction growth of 1.5%, an average ticket increase of 3.1%, as well as strong e-commerce growth. E-commerce sales rose 26%, driven by strong performance in store-fulfilled delivery, marketplace growth and advertising.
The operating income of the Walmart U.S. segment jumped 2% to $6.7 billion, reflecting solid inventory management and improved e-commerce economics, partly offset by elevated claims expenses.
Walmart International: The segment’s net sales inched up 5.5% to $31.2 billion. Foreign currency fluctuations negatively impacted sales by $1.5 billion. On a cc basis, net sales jumped 10.5%, driven by strong performance in China, Flipkart and Walmex, supported by higher transaction counts and increased unit volumes. Sales strength continued across food and consumables, alongside growth in general merchandise.
E-commerce sales increased 22%, driven by strong growth in store-fulfilled pickup and delivery services and marketplace performance, with a higher digital sales mix across markets. The operating income, on a cc basis, fell 2.8% to $1.3 billion, impacted by strategic investments in India, Canada and Mexico, along with unfavorable currency translation.
Sam’s Club U.S.: The segment, which comprises membership warehouse clubs, witnessed a net sales increase of 6% to $21.2 billion (excluding fuel). Sam’s Club’s comp sales, excluding fuel, grew 5.9%. While transactions grew 3.9%, the average ticket climbed 2%. Sales growth was driven by strong performance in grocery and health & wellness.
E-commerce net sales jumped 26% at Sam’s Club U.S. Membership income increased 7.6%, supported by consistent growth in member count, strong renewal rates and higher penetration of Plus members. The segment’s operating income totaled $0.5 billion, down 15.8% year over year.
WMT Stock: Other Updates & Developments
The Zacks Rank #2 (Buy) company ended the quarter with cash and cash equivalents of $9.4 billion and total debt of $50.3 billion.
For the six months ended July 31, 2025, WMT generated an operating cash flow of $18.4 billion and a free cash flow of $6.9 billion. In fiscal 2026, capital expenditure is likely to account for 3-3.5% of net sales.
Year to date, Walmart repurchased 67.4 million shares for $6.2 billion, with $5.9 billion remaining under its $20 billion authorization.
What to Expect From WMT in Fiscal 2026?
For the third quarter of fiscal 2026, WMT expects consolidated net sales growth of 3.75-4.75% (at cc). The guidance includes almost 20 bps benefit from the VIZIO acquisition. The operating income is expected to grow 3-6% (cc), with adjusted EPS in the range of 58-60 cents.
For fiscal 2026, WMT now expects consolidated net sales growth of 3.75-4.75% (at cc) compared with prior guidance of 3-4%. The adjusted operating income is expected to increase 3.5-5.5% at cc for the year. Net interest expenses are likely to escalate $100-$200 million.
Walmart now expects adjusted EPS for fiscal 2026 to be in the $2.52-$2.62 range compared with prior guidance of $2.50-$2.60. The company recorded an adjusted EPS of $2.51 in fiscal 2025.
WMT’s shares have gained 6.9% in the past three months compared with the industry’s growth of 6.8%.
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Other Key Picks
The Kroger Co. (KR) operates as a food and drug retailer in the United States, and currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Kroger’s current fiscal-year sales and earnings implies growth of 1.1% and 6.7%, respectively, from the year-ago reported numbers. KR delivered a trailing four-quarter earnings surprise of 1.4%, on average.
Grocery Outlet Holding Corp. (GO) operates as a retailer of consumables and fresh products sold through independently operated stores in the United States. It carries a Zacks Rank #2 at present. GO delivered a trailing four-quarter earnings surprise of 28.2%, on average.
The Zacks Consensus Estimate for Grocery Outlet’s current financial-year sales indicates growth of around 8.2% from the year-ago reported numbers.
Ollie's Bargain Outlet Holdings, Inc. (OLLI) operates as a retailer of closeout merchandise and excess inventory in the United States and currently carries a Zacks Rank #2. OLLI delivered a trailing four-quarter earnings surprise of 2%, on average.
The Zacks Consensus Estimate for Ollie's current fiscal-year sales and earnings implies growth of 14.3% and 14%, respectively, from the year-ago reported numbers.
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Walmart Q2 Earnings Miss Estimates but Sales Beat, FY26 View Lifted

Coty Inc. COTY posted fourth-quarter fiscal 2025 results, wherein the top line beat the Zacks Consensus Estimate and the bottom line missed the same. Both metrics experienced year-over-year declines. As a result, shares of this company declined 17.7% in the after-hours trading session yesterday.
The company’s soft fourth-quarter performance was impacted by category headwinds, cautious retailer ordering and tariff-related pressures. However, Coty remains well-positioned as it enters fiscal 2026, underpinned by a robust pipeline of innovation, geographic and channel expansion, and disciplined cost savings. Despite near-term revenue declines, the company is executing a multi-pronged strategy centered on fragrance leadership, expanded distribution, organizational efficiency and ongoing deleveraging.
In the fiscal fourth quarter, Coty delivered an adjusted loss of 5 cents per share in contrast to the Zacks Consensus Estimate of adjusted earnings of 1 cent. Also, the bottom line declined from an adjusted loss of 3 cents reported in the year-ago quarter. Results included a 7-cent negative impact from the equity swap mark-to-market due to the stock price decline, compared with a 10-cent negative impact in the prior year.
Coty’s net revenues were $1,252.4 million, down 8% year over year. The metric reflected a 1% benefit from foreign currency exchange. Quarterly net revenues beat the Zacks Consensus Estimate of $1,203 million.
On a like-for-like (“LFL”) basis, net revenues declined 9%, reflecting a decrease in Prestige and Consumer Beauty. We expected LFL revenues to decrease 9.3% year over year in the fiscal fourth quarter.
Coty Price, Consensus and EPS Surprise
Taking a Closer Look at COTY’s Q4 Results
The adjusted and reported gross margin was 62.3%, down 190 basis points. This reflected a normalization from the unusually elevated gross margin levels seen last year. We expected adjusted gross margin to decrease 170 basis points year over year to 62.5%.
Coty reported an adjusted operating income of $67.7 million, a 37% decline from the prior year’s level. The company's adjusted operating margin was 5.4%, reflecting a 250 basis-point decrease year over year. We anticipated the adjusted operating margin to decrease 180 basis points year over year to 6.1%.
Adjusted EBITDA of $126.7 million declined 23% year over year. The adjusted EBITDA margin was 10.1%, down 200 basis points year over year. We anticipated the adjusted EBITDA margin to decrease 160 basis points year over year to 10.5%.
Q4 Insights of COTY’s Segments
Prestige: Net revenues in the segment were $760.6 million, accounting for 61% of total company sales. This represented a 5% decline on a reported basis, including a 2% benefit from foreign exchange. On a LFL basis, revenues declined 7%. The decline was mainly caused by underperformance in the U.S. market, proactive inventory rightsizing by retailers to align with current demand and lower prestige makeup and skincare sales.
The segment’s reported operating income was $38.1 million compared with $49.7 million in the year-ago quarter. Adjusted operating income was $74.7 million, down from $87.8 million in the prior-year quarter. The adjusted operating margin was 9.8%, down 110 basis points year over year. Prestige’s adjusted EBITDA was $102.9 million compared with $112.8 million in the year-ago quarter, with margins pressured by softer top-line performance.
Looking ahead, the Prestige segment is poised to benefit from a strong pipeline of blockbuster launches, including the global rollout of Boss Bottled Beyond and additional major product launches slated for both halves of fiscal 2026. The company is also extending key brands into new channels, such as Marc Jacobs on Amazon Premium Beauty, and preparing for new category entries in fragrance mists, ultra-premium fragrances and complementary scent formats like body mists and sprays, reinforcing its focus on diversification and premiumization.
Consumer Beauty: Net revenues amounted to $491.8 million, accounting for 39% of total sales. This represented a 12% decline on both reported and LFL basis, primarily caused by weakness in color cosmetics and body care categories.
The segment reported a loss, with an operating loss of $16 million compared with an operating income of $10.3 million in the prior-year quarter. Adjusted operating loss was $7 million compared with adjusted operating income of $20.2 million in the year-ago quarter. The adjusted loss margin was 1.4% compared with a 3.6% adjusted operating margin in the prior year. Adjusted EBITDA declined to $23.8 million from $51.7 million, with margins contracting 430 basis points to 4.8%.
For fiscal 2026 and beyond, the Consumer Beauty segment is focused on reigniting growth through innovation and expanded channel reach. Building on the momentum of adidas Vibes, the company is set to launch new innovations under key mass fragrance brands, introduce exclusive in-house collections such as Origen at Walmart and roll out fragrance mist extensions under brands like adidas and Nautica. In cosmetics, Coty is preparing to launch trend-led products in lip, mascara and nail care, supported by advanced technologies and consumer engagement. The expansion will be amplified through high-impact digital channels, including Amazon and TikTok Shop, positioning Consumer Beauty for long-term recovery and profitability.
COTY’s Regional Revenue Results
Coty’s Americas segment reported net revenues of $511.2 million, accounting for 40.8% of total sales. This reflected a 12% decline on a reported basis, including a 2% negative impact from foreign exchange and a 10% decline on a LFL basis. The decline was primarily caused by lower Prestige revenues in the United States, largely due to tough comparisons against elevated innovation levels in the prior year and proactive retailer inventory rightsizing. Additionally, Consumer Beauty sales in the United States were negatively impacted by softness in color cosmetics.
Coty’s EMEA segment generated net revenues of $574.2 million, accounting for 45.8% of total sales. This marked a 4% decline on a reported basis, including a 5% positive impact from foreign exchange. On a LFL basis, EMEA net revenues decreased 9% in the fiscal fourth quarter. Both reported and LFL sales were impacted by lower Prestige net revenues — primarily reflecting proactive inventory rightsizing to align with current demand trends — as well as softer Consumer Beauty net revenues.
Coty’s Asia Pacific segment reported net revenues of $167 million, representing 13.3% of total sales. This reflected an 8% decline on a reported basis, including a 1% negative impact from foreign exchange. The decline indicated softness across most markets. On a LFL basis, net revenues decreased 9%. Notably, Coty’s sell-out in nearly all Asia markets, excluding China, grew almost four times faster than the market, led by strong double-digit growth in fragrance and skincare.
COTY Stock Past Three-Month Performance
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COTY’s Financial Health Snapshot
The company ended the fiscal fourth quarter with cash and cash equivalents of $257.1 million, total debt of $4,008.4 million and financial net debt of $3,751.3 million, implying a leverage ratio of 3.5x. In the fiscal fourth quarter, cash provided by operating activities amounted to $83.2 million, while free cash flow was $34.9 million.
What to Expect From Coty in FY26
Entering fiscal 2026, Coty operates in a complex backdrop. Beauty demand remains solid, especially fragrances across price points and formats. Macro uncertainty, tariffs and a more promotional market are keeping retailer orders cautious. Coty is rolling out major innovations, a multi-brand push into fragrance mists and broader fragrance distribution, while rightsizing retailer inventories and rebalancing Consumer Beauty toward profit engines like mass fragrances.
Management expects sales trends to improve gradually through fiscal 2026 from the fiscal fourth quarter baseline reset. LFL sales are forecasted to decline 6-8% in the fiscal first quarter and 3-5% in the fiscal second quarter, with a return to LFL growth in the second half. Drivers include multiple launches in both Prestige and Consumer Beauty, geographic and channel expansion, and easier comparisons. Organizational changes are expected to start yielding results, with benefits building over the coming quarters.
On reported revenues, Coty estimates a low single-digit FX benefit in the first half. Gross margin pressure is expected in the first half from lower sales and net tariff impact, with tariff-mitigation efforts contributing more meaningfully in the second half. Step-ups in fixed-cost savings under the All-In To Win program should broadly balance the resumption of variable compensation. Some quarterly phasing fluctuations in net fixed costs are anticipated through the year.
Profit trends are expected to improve sequentially from fiscal fourth-quarter levels. Adjusted EBITDA is predicted to decline a mid-to-high-teens percentage in the fiscal first quarter and a low-to-mid-teens percentage in the fiscal second quarter, followed by a return to adjusted EBITDA growth in the second half. The cadence reflects the timing of launches, tariff mitigation, cost actions and progressively easier comparisons.
Earnings should follow a similar shape. Lower interest expense and a reduced tax rate support a high single-digit to mid-teen decline in first-half adjusted EPS to 33-36 cents. Adjusted EPS growth is expected in the second half. Free cash flow in the first half is expected to exceed $350 million, positioning leverage approximately in line with or below 3.5x, despite lower EBITDA and FX headwinds from Euro-denominated debt.
Shares of this Zacks Rank #3 (Hold) company have lost 3% in the past month against the industry’s 0.9% growth.
Three Stocks to Consider
Post Holdings POST is a consumer-packaged goods holding company. POST presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Post Holdings’ current sales and earnings indicates growth of 3.1% and 10.9%, respectively, from the year-ago period’s reported figures. POST delivered a trailing four-quarter earnings surprise of 21.4%, on average.
Ingredion Incorporated INGR serves diverse sectors in food, beverage, brewing, pharmaceuticals and other industries. It currently carries a Zacks Rank of 2 (Buy). INGR delivered a trailing four-quarter average earnings surprise of 11.1%.
The consensus estimate for INGR’s current financial-year sales and earnings indicates decline of 1% and growth of 6.8%, respectively, from the prior-year reported levels.
Grocery Outlet GO, an extreme value retailer of quality, name-brand consumables and fresh products, carries a Zacks Rank #2 at present. GO delivered a trailing four-quarter earnings surprise of 28.2%, on average.
The Zacks Consensus Estimate for Grocery Outlet’s current financial-year sales indicates growth of around 8.2% from the year-ago reported numbers.
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Coty Reports Q4 Loss, LFL Revenues Decline Y/Y, Stock Down 18%

Lowe’s Companies, Inc. LOW posted second-quarter fiscal 2025 results with year-over-year growth in both the top and bottom lines. While revenues came in just shy of the Zacks Consensus Estimate, earnings surpassed the same. The Mooresville, NC-based home improvement retailer returned to positive comparable sales during the quarter. Management also updated its full-year outlook following the completion of the Artisan Design Group (ADG) acquisition.
LOW’s Quarterly Performance: Key Metrics & Insights
The home improvement retailer posted adjusted earnings of $4.33 per share, which beat the Zacks Consensus Estimate of $4.23. The figure marked a 5.6% increase from earnings of $4.10 per share reported in the same period last year. Including costs related to the acquisition of ADG, quarterly earnings came in at $4.27 per share, up from $4.17 in the prior-year period.
Net sales of $23,959 million marginally missed the consensus estimate of $23,961 million but rose from $23,586 million in the year-ago period. The growth was driven by a 1.1% increase in comparable sales as both Pro and DIY customers contributed despite a challenging start to the quarter from the weather. We had anticipated a 1.5% increase in comparable sales.
Lowe's Companies, Inc. Price, Consensus and EPS Surprise
LOW’s Margin & Cost Details
Lowe’s reported an adjusted gross margin of 33.8%, an increase of 37 basis points from the same quarter last year. We had expected gross margin to remain flat year over year.
Adjusted selling, general and administrative expenses totaled $4,149 billion, up from $4,068 million from the year-ago period. As a percentage of net sales, the metric came in at 17.3%, almost flat year over year.
The adjusted operating income increased to $3,512 million from $3,404 million a year earlier. We observe that the operating margin expanded 23 basis points to 14.7%. We anticipated a 10-basis-point lift in the operating margin.
Lowe’s Pro Strategy: ADG Closed; FBM Deal Announced
The acquisition of ADG expands Lowe’s ability to capture a greater share of Pro planned spending and strengthens its reach in new home construction. Building on this, the company has entered into an agreement to acquire Foundation Building Materials (FBM) for roughly $8.8 billion.
With more than 370 locations in the United States and Canada, and about 40,000 Pro customers, FBM generated an estimated $6.5 billion in revenues and $635 million in adjusted EBITDA in 2024 on a pro forma basis. The deal, to be funded with debt, is expected to be accretive to adjusted earnings per share in the first full year post-close and significantly advance Lowe’s Total Home and Pro strategies.
LOW’s Financial Health Snapshot
This Zacks Rank #3 (Hold) company ended the quarter with cash and cash equivalents of $4,860 million, long-term debt (excluding current maturities) of $30,548 million, and a shareholders’ deficit of $11,400 million.
For the first half of fiscal 2025, operating cash flow totaled $7,610 million, while free cash flow stood at $6,597 million after accounting for capital expenditures of $1,013 million. The company returned value to its shareholders by paying $645 million in dividends during the quarter, in addition to investing $1.3 billion toward the ADG acquisition.
As of Aug. 1, 2025, Lowe's operated 1,753 stores, encompassing a total of 195.5 million square feet of retail selling space.
A Sneak Peek Into LOW’s FY25 Outlook
Management raised its full-year sales guidance to reflect ADG’s contribution. Total sales are now projected between $84.5 billion and $85.5 billion, up from the prior range of $83.5 billion to $84.5 billion. Comparable sales are expected to be flat to up 1%. The operating margin forecast is 12.1%-12.2% (previously between 12.3% and 12.4%), with the adjusted operating margin guided to 12.2%-12.3%.
Lowe’s foresees earnings per share to be in the band of $12.10 to $12.35 (previously $12.15 to $12.40) with adjusted earnings projected in the range of $12.20 to $12.45 per share. Capital expenditures remain guided at approximately $2.5 billion.
Lowe’s Stock Price Performance
Shares of Lowe’s have advanced 17.2% in the past month compared with the industry’s rise of 13%.
Don’t Miss These Solid Bets
The Kroger Co. KR operates in the thin-margin grocery industry, and currently carries a Zacks Rank #2 (Buy). KR has a trailing four-quarter earnings surprise of 1.4%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Kroger’s current financial-year sales and earnings implies growth of 1.1% and 6.5%, respectively, from the year-ago reported numbers.
Grocery Outlet GO, an extreme value retailer of quality, name-brand consumables and fresh products, carries a Zacks Rank #2 at present. GO has a trailing four-quarter earnings surprise of 28.2%, on average.
The Zacks Consensus Estimate for Grocery Outlet’s current financial-year sales suggests growth of around 8.2% from the year-ago reported numbers.
Ollie's Bargain Outlet Holdings OLLI is a value retailer of brand-name merchandise at drastically reduced prices and currently carries a Zacks Rank #2. OLLI has a trailing four-quarter earnings surprise of 2%, on average.
The Zacks Consensus Estimate for Ollie's current fiscal-year sales and earnings implies growth of 14.2% and 14%, respectively, from the year-ago reported numbers.
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Lowe's Q2 Earnings Beat, Comps Rise Y/Y, View Revised on ADG Inclusion

Target Corporation TGT reported second-quarter fiscal 2025 results, with revenues and earnings declining from the prior-year period. The top line surpassed the Zacks Consensus Estimate, while the bottom line fell short. Also, the company witnessed a decline in comparable sales.
While results reflected ongoing headwinds in consumer demand and operational pressures, Target delivered sequential improvements, aided by stronger store traffic, disciplined expense management and continued digital momentum.
Digital comparable sales advanced 4.3% year over year, driven by over 25% growth in same-day delivery through Target Circle 360 and sustained momentum in Drive Up services.
Target Corporation Price, Consensus and EPS Surprise
Target’s Quarterly Performance: Key Metrics & Insights
Target reported adjusted earnings of $2.05 per share, which missed the Zacks Consensus Estimate of $2.09 and declined 20.2% from $2.57 in the year-ago period.
The big-box retailer generated total revenues of $25,211 million, which topped the Zacks Consensus Estimate of $24,911 million. The metric fell 0.9% on a year-over-year basis. We note that merchandise sales declined 1.2% to $24,719 million, while non-merchandise sales grew 14.2%, supported by Roundel advertising, membership and marketplace revenues.
Meanwhile, comparable sales decreased 1.9%, following a 3.8% decline in the preceding quarter. The metric reflected a decline of 3.2% in comparable store sales but an increase of 4.3% in comparable digital sales. We had projected a decline of 3.3% in comparable sales.
Traffic or the number of transactions dipped 1.3%, while the average transaction amount slid 0.6%. We had expected the average transaction amount to decline 2% for the quarter under review.
The gross margin contracted 100 basis points to 29%, pressured by higher markdown activity, purchase order cancellation costs and category mix, partially offset by reduced inventory shrink and increased advertising and non-merchandise revenues. The operating margin shrank 120 basis points to 5.2% from 6.4% in the corresponding period last year. We had expected a 110-basis-point contraction in the operating margin.
TGT Stock's Past 3-Month Performance
Image Source: Zacks Investment Research
Target’s Financial Health Snapshot
Target ended the second quarter with cash and cash equivalents of $4,341 million, long-term debt and other borrowings of $15,320 million, and shareholders’ investment of $15,420 million. During the quarter, Target paid out dividends of $509 million.
The company did not repurchase any shares during the quarter. At the end of the period, Target had about $8.4 billion remaining under the repurchase program approved in August 2021.
A Sneak Peek Into TGT’s FY25 Outlook
This Zacks Rank #3 (Hold) company reaffirmed its fiscal 2025 guidance. It continues to expect a low-single-digit decline in sales. Adjusted earnings are projected in the band of $7-$9 per share, while GAAP earnings per share are anticipated in the range of $8-$10.
Shares of Target have gained 13.3% in the past three months against the industry’s decline of 0.8%.
Don’t Miss These Solid Bets
The Kroger Co. KR operates in the thin-margin grocery industry, and currently carries a Zacks Rank #2 (Buy). KR has a trailing four-quarter earnings surprise of 1.4%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Kroger’s current financial-year sales and earnings implies growth of 1.1% and 6.5%, respectively, from the year-ago reported numbers.
Grocery Outlet GO, an extreme value retailer of quality, name-brand consumables and fresh products, carries a Zacks Rank #2 at present. GO has a trailing four-quarter earnings surprise of 28.2%, on average.
The Zacks Consensus Estimate for Grocery Outlet’s current financial-year sales suggests growth of around 8.2% from the year-ago reported numbers.
Ollie's Bargain Outlet Holdings OLLI is a value retailer of brand-name merchandise at drastically reduced prices and currently carries a Zacks Rank #2. OLLI has a trailing four-quarter earnings surprise of 2%, on average.
The Zacks Consensus Estimate for Ollie's current fiscal-year sales and earnings implies growth of 14.2% and 14%, respectively, from the year-ago reported numbers.
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The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.
One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.
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Target Q2 Earnings Miss Estimates, Comparable Sales Decline Y/Y

Investors looking for stocks in the Consumer Products - Staples sector might want to consider either Grocery Outlet Holding Corp. (GO) or Church & Dwight (CHD). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Grocery Outlet Holding Corp. has a Zacks Rank of #2 (Buy), while Church & Dwight has a Zacks Rank of #3 (Hold). This means that GO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
GO currently has a forward P/E ratio of 24.12, while CHD has a forward P/E of 26.19. We also note that GO has a PEG ratio of 3.33. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CHD currently has a PEG ratio of 3.75.
Another notable valuation metric for GO is its P/B ratio of 1.53. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, CHD has a P/B of 5.04.
These metrics, and several others, help GO earn a Value grade of B, while CHD has been given a Value grade of D.
GO sticks out from CHD in both our Zacks Rank and Style Scores models, so value investors will likely feel that GO is the better option right now.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
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Indicator	TTM Median
P/E	35.31 20.90
Price/Sales	0.46 0.83
P/B	1.45 1.82
P/FCF	262.31 19.11

Indicator	TTM Median
Net Worth	1.91 1.38
Quick Ratio	0.29 0.86
Current Ratio	1.29 1.37

Indicator	TTM Median
Net Profit Margin	1.30 5.78
Operating Margin	2.02 9.26
Gross Margin	30.48 34.60

Indicator	TTM Median
EPS	0.27 0.51
EPS Forecast	0.21 0.41
Revenue	1.13B 141.00M
Gross Profit	349.00M —
EBITDA	53.00M —

Grocery Outlet Holding Corp.

TTM metrics for the latest quarter under IFRS and their historical dynamics

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Revenue