15 Worst 52-Week Low Stocks to Buy Now According to Short Sellers

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

52 Week Range: $16.06 – $29.98

Current Share Price: $16.29

Short % of Shares Outstanding: 11.15%

Number of Hedge Funds holding stakes as of Q2 2024: 26

Grocery Outlet Holding Corp. (NASDAQ:GO) is a consumer defensive investment play that operates as a retailer of consumables and fresh products. The retailer has lost nearly 50% of its market value over the past 12 months, dropping to 52-week lows.

The underperformance, which has seen Grocery Outlet Holding Corp. (NASDAQ:GO) emerge as one of the worst 52-week low stocks to buy now, according to short sellers, can be attributed to internal challenges. For starters, the company is struggling following a recent system transition while also grappling with rising expenses that are putting pressure on its thin margins.

A deteriorating U.S. economy hurt by high interest rates negatively impacting consumer purchasing power also significantly affected the company’s core business. Consequently, investors have been under pressure, resulting in a high short interest rate of 11.15%.

Nevertheless, Grocery Outlet Holding Corp. (NASDAQ:GO)’s core business shows signs of growth, as shown by the solid second-quarter results. Revenue in the quarter was up 12% year over year to $1.13 billion. The company plans to open up 64 new stores before the end of 2024 and expected net sales to range between $4.3 billion and $4.35 billion. Grocery Outlet’s emphasis on opportunistic purchasing-focused advertising, the growth of its stores, and its online sales efforts also show promise.

During the second quarter, hedge funds reduced their positions in Grocery Outlet Holding Corp. (NASDAQ:GO), with 26 funds holding positions, down from 28 in the previous quarter. 12 West Capital Management retained the spot as the largest stakeholder in the company for the second consecutive quarter after increasing its holdings by 51%.