While there are plenty of ways to make money in the stock market, one of the best ways to generate significant returns is to buy undervalued, resilient businesses with long runways for growth and reinvestment. And Sprouts Farmers market (NASDAQ: SFM) is a company that appears to check those boxes.
At a roughly $3 billion market cap, Sprouts Farmers Market looks to have a future that's quite bright. Here's why.
Unlike many traditional grocery chains, Sprouts is hyper-focused on delivering fresh groceries and dietary-specific items to what the company calls "health enthusiasts." While that target audience might sound a bit smaller than the more standard grocery shoppers, the health and wellness food market is expected to grow at an 8% compounded annual growth rate over the next three years -- much faster than traditional grocery.
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Is This the Right Time to Get In On Sprouts Farmers Market?