Sectors & IndustriesConsumer DefensiveGrocery Stores

Best Grocery Store Stocks to Buy Now (2023)

Top grocery store stocks in 2023 ranked by overall Zen Score. See the best grocery store stocks to buy now, according to analyst forecasts for the grocery stores industry.

According to Zen Score, the 3 best grocery store stocks to buy right now are:

Ingles Markets (NASDAQ:IMKTA) is the top grocery store stock with a Zen Score of 53, which is 19 points higher than the grocery store industry average of 34. It passed 20 out of 38 due diligence checks and has strong fundamentals. Ingles Markets has seen its stock lose -9.56% over the past year, underperforming other grocery store stocks by -2 percentage points.

Grocery Outlet Holding (NASDAQ:GO) is the second best grocery store stock with a Zen Score of 48, which is 14 points higher than the grocery store industry average of 34. It passed 16 out of 33 due diligence checks and has strong fundamentals. Grocery Outlet Holding has seen its stock lose -24.45% over the past year, underperforming other grocery store stocks by -17 percentage points.

Grocery Outlet Holding has an average 1 year price target of $30.75, an upside of 6.55% from Grocery Outlet Holding's current stock price of $28.86.

Grocery Outlet Holding stock has a consensus Hold recommendation according to Wall Street analysts. Of the 4 analysts covering Grocery Outlet Holding, 25% have issued a Strong Buy rating, 25% have issued a Buy, 25% have issued a hold, while 0% have issued a Sell rating, and 25% have issued a Strong Sell.

Caseys General Stores (NASDAQ:CASY) is the third best grocery store stock with a Zen Score of 48, which is 14 points higher than the grocery store industry average of 34. It passed 18 out of 38 due diligence checks and has strong fundamentals. Caseys General Stores has seen its stock return 8.58% over the past year, overperforming other grocery store stocks by 16 percentage points.

Caseys General Stores has an average 1 year price target of $264.00, an upside of 15.26% from Caseys General Stores's current stock price of $229.05.

Caseys General Stores stock has a consensus Buy recommendation according to Wall Street analysts. Of the 6 analysts covering Caseys General Stores, 50% have issued a Strong Buy rating, 16.67% have issued a Buy, 33.33% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 6 grocery store stocks that have issued dividends in the past year, the 3 grocery store stocks with the highest dividend yields are:

Village Super Market (NASDAQ:VLGEA) has an annual dividend yield of 4.71%, which is 3 percentage points higher than the grocery store industry average of 1.97%. Village Super Market's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Village Super Market's dividend has not shown consistent growth over the last 10 years.

Village Super Market's dividend payout ratio of 39.7% indicates that its dividend yield is sustainable for the long-term.

Natural Grocers By Vitamin Cottage (NYSE:NGVC) has an annual dividend yield of 3.78%, which is 2 percentage points higher than the grocery store industry average of 1.97%.

Natural Grocers By Vitamin Cottage's dividend payout ratio of 56.3% indicates that its dividend yield is sustainable for the long-term.

Kroger Co (NYSE:KR) has an annual dividend yield of 2.26%, which is the same as the grocery store industry average of 1.97%. Kroger Co's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Kroger Co's dividend has shown consistent growth over the last 10 years.

Kroger Co's dividend payout ratio of 31.9% indicates that its dividend yield is sustainable for the long-term.

Grocery store stocks were up 2.19% in the last day, and down -0.33% over the last week.

We couldn't find a catalyst for why grocery store stocks are up.

Based on WallStreetZen's Valuation Score, the 3 most undervalued grocery store stocks right now are:

Ingles Markets (NASDAQ:IMKTA) is the most undervalued grocery store stock based on WallStreetZen's Valuation Score. Ingles Markets has a valuation score of 86, which is 52 points higher than the grocery store industry average of 34. It passed 6 out of 7 valuation due diligence checks.

Ingles Markets's stock has dropped -9.56% in the past year. It has underperformed other stocks in the grocery store industry by -2 percentage points.

Village Super Market (NASDAQ:VLGEA) is the second most undervalued grocery store stock based on WallStreetZen's Valuation Score. Village Super Market has a valuation score of 71, which is 37 points higher than the grocery store industry average of 34. It passed 5 out of 7 valuation due diligence checks.

Village Super Market's stock has dropped -11.91% in the past year. It has underperformed other stocks in the grocery store industry by -4 percentage points.

Grocery Outlet Holding (NASDAQ:GO) is the third most undervalued grocery store stock based on WallStreetZen's Valuation Score. Grocery Outlet Holding has a valuation score of 43, which is 9 points higher than the grocery store industry average of 34. It passed 3 out of 7 valuation due diligence checks.

Grocery Outlet Holding's stock has dropped -24.45% in the past year. It has underperformed other stocks in the grocery store industry by -17 percentage points.