Sprouts Farmers Market: A New Age For Grocers Has Dawned

Harrison Schwartz

Sprouts Farmers Market has surged 470% since I became bullish in 2021, driven by superior management and a bifurcating grocery industry.
Despite its high valuation, SFM's strong growth potential and market shift away from middle-market grocers like Kroger and Albertson's continued double-digit sales growth.
Projecting its growth into the 2030s, Sprouts may be reasonably valued today, given that its sales are currently far below its expanding total addressable market.
Sprouts is far more expensive than Kroger and Albertsons, but is likely undervalued to Costco. Compared to Costco, Sprouts has more recession risk but far superior long-term growth potential.
SFM's current valuation appears risky due to potential demand fluctuations and fickle short-term momentum traders.

Kobus Louw

In 2021, Sprouts Farmers Market (NASDAQ:SFM) was stuck in a trading range as grocers grappled with rising input prices and inconsistent demand. SFM was not a popular stock, as sentiment regarding grocers was generally negative amid increased operating

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

1

{"i18n":{"language":"en_US"},"detailType":1,"isChannel":false,"data":{"magic":2,"id":369687262630192,"tweetId":"369687262630192","gmtCreate":1731271524000,"gmtModify":1731289231341,"author":{"id":10000000000010872,"idStr":"10000000000010873","authorId":10000000000010872,"authorIdStr":"10000000000010873","name":"Harrison Schwartz","avatar":"https://community-static.tradeup.com/news/3caa8e02189196b324406870bb2d3718","vip":8,"userType":8,"introduction":",","boolIsFan":false,"boolIsHead":false,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[],"fanSize":7,"starInvestorFlag":false},"themes":[],"images":[{"img":"https://static.tigerbbs.com/112e05ad5da492d22ee5f4138d384a49"}],"coverImages":[{"img":"https://static.tigerbbs.com/112e05ad5da492d22ee5f4138d384a49"}],"title":"Sprouts Farmers Market: A New Age For Grocers Has Dawned","html":"<html><head></head><body><ul>\n <li>Sprouts Farmers Market has surged 470% since I became bullish in 2021, driven by superior management and a bifurcating grocery industry.</li>\n <li>Despite its high valuation, SFM's strong growth potential and market shift away from middle-market grocers like Kroger and Albertson's continued double-digit sales growth.</li>\n <li>Projecting its growth into the 2030s, Sprouts may be reasonably valued today, given that its sales are currently far below its expanding total addressable market.</li>\n <li>Sprouts is far more expensive than Kroger and Albertsons, but is likely undervalued to Costco. Compared to Costco, Sprouts has more recession risk but far superior long-term growth potential.</li>\n <li>SFM's current valuation appears risky due to potential demand fluctuations and fickle short-term momentum traders.</li>\n</ul>\n<p></p><img src=\"https://static.tigerbbs.com/112e05ad5da492d22ee5f4138d384a49\">\n<p class=\"item-caption\"></p>\n<p class=\"item-credits\">Kobus Louw</p>\n<p></p>\n<div class=\"inline_ad_placeholder\"></div>\n<p>In 2021, Sprouts Farmers Market (<span class=\"ticker-hover-wrapper\">NASDAQ:<a href=\"https://seekingalpha.com/symbol/SFM\">SFM</a></span>) was stuck in a trading range as grocers grappled with rising input prices and inconsistent demand. SFM was not a popular stock, as sentiment regarding grocers was generally negative amid increased operating</p></body></html>","htmlText":"<html><head></head><body><ul>\n <li>Sprouts Farmers Market has surged 470% since I became bullish in 2021, driven by superior management and a bifurcating grocery industry.</li>\n <li>Despite its high valuation, SFM's strong growth potential and market shift away from middle-market grocers like Kroger and Albertson's continued double-digit sales growth.</li>\n <li>Projecting its growth into the 2030s, Sprouts may be reasonably valued today, given that its sales are currently far below its expanding total addressable market.</li>\n <li>Sprouts is far more expensive than Kroger and Albertsons, but is likely undervalued to Costco. Compared to Costco, Sprouts has more recession risk but far superior long-term growth potential.</li>\n <li>SFM's current valuation appears risky due to potential demand fluctuations and fickle short-term momentum traders.</li>\n</ul>\n<p></p><img src=\"https://static.tigerbbs.com/112e05ad5da492d22ee5f4138d384a49\">\n<p class=\"item-caption\"></p>\n<p class=\"item-credits\">Kobus Louw</p>\n<p></p>\n<div class=\"inline_ad_placeholder\"></div>\n<p>In 2021, Sprouts Farmers Market (<span class=\"ticker-hover-wrapper\">NASDAQ:<a href=\"https://seekingalpha.com/symbol/SFM\">SFM</a></span>) was stuck in a trading range as grocers grappled with rising input prices and inconsistent demand. SFM was not a popular stock, as sentiment regarding grocers was generally negative amid increased operating</p></body></html>","text":"Sprouts Farmers Market has surged 470% since I became bullish in 2021, driven by superior management and a bifurcating grocery industry. Despite its high valuation, SFM's strong growth potential and market shift away from middle-market grocers like Kroger and Albertson's continued double-digit sales growth. Projecting its growth into the 2030s, Sprouts may be reasonably valued today, given that its sales are currently far below its expanding total addressable market. Sprouts is far more expensive than Kroger and Albertsons, but is likely undervalued to Costco. Compared to Costco, Sprouts has more recession risk but far superior long-term growth potential. SFM's current valuation appears risky due to potential demand fluctuations and fickle short-term momentum traders. Kobus Louw In 2021, Sprouts Farmers Market (NASDAQ:SFM) was stuck in a trading range as grocers grappled with rising input prices and inconsistent demand. SFM was not a popular stock, as sentiment regarding grocers was generally negative amid increased operating","highlighted":1,"essential":1,"paper":2,"likeSize":1,"commentSize":0,"repostSize":0,"favoriteSize":0,"link":"https://ttm.financial/post/369687262630192","repostId":0,"isVote":1,"tweetType":1,"viewCount":157,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":["SFM","WRD","COST"],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":889,"xxTargetLangEnum":"ORIG"},"commentList":[],"isCommentEnd":true,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/369687262630192"}