Grocery Outlook (GO) is my Stock of the Week selection. That makes a lot of sense at Thanksgiving time as we enjoy a feast of plenty with friends and family. Indeed that shopping excursion for some of you may have taken place at Grocery Outlet.

But likely not the case for most of you…because they only have just over 300 locations. So the vast majority of the country has no access to this one of a kind store. And that, my friends, is exactly what presents such a glorious growth investment opportunity at this time.

Let me put my cards fully on the table. I haven’t been this excited by a stock in a long time.

Don’t get me wrong. I am constantly researching and selecting stocks. In fact, it may look like I am watching the Chicago Bears, Bulls, Blackhawks or Cubs on the TV…but likely there is a laptop in hand with stock research on the screen.

I just love that little tingle that happens when you sense you are on the trail of a winner. That is just how I felt about my last two stock of the week selections:

Alibaba (BABA) from 10/30

Helen of Troy (HELE) from 11/13

But this is more than a tingle. I sense this could be a long term beast of a stock.

That’s because Grocery Outlet is a truly unique concept that has been compared to the TJ Maxx of grocery stores. And the long term success of TJX shows up quite clearly in the $73 billion market cap.

But I also think GO has a tinge of Trader Joe’s wrapped up in there too. And as more people get exposed to their surprising mix of quality merchandise and outrageously low prices…they will become loyal customers. This fact is most evident in their outstanding 5.8% same stores sales metric from the past quarter.

For as impressive as the growth opportunity is to expand across the country…I am actually surprised at how much upside shares have to fair value at this time.

The average target stands at $43. But the analyst from Jefferies, Randal Konik, was not shy putting out his street high of $51 after seeing the recent spectacular earnings report. So our entry today around $33 seems quite tempting with the impressive upside potential.

All growth stocks are risky. Especially those riding a new retail trend because in the end it could just be a fad that makes the company a flash in the pan.

But every now and then you really can get onboard a juggernaut that sets the industry on fire for a long, long time. I like the odds that Grocery Outlet could be just that stock and is worth us putting it in our basket today at this attractive price.

Note that I recently added shares of GO to the Reitmeister Total Return portfolio where it joins a collection of 9 other stocks and 3 ETFs. And to be honest, I packed shares into one of my IRA accounts where I’ve had ample success riding out long term winners.

If you’d like to see all of my current recommendations, plus my market outlook, and next round of trades, then consider taking a 30 day trial to the Reitmeister Total Return portfolio.

GO shares . Year-to-date, GO has gained 14.77%, versus a 27.43% rise in the benchmark S&P 500 index during the same period.

About the Author: Steve Reitmeister

Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks. More...

More Resources for the Stocks in this Article