Grocery stores are a fairly steady but low-growth industry. Historical supermarket sales back this up, growing at a meager 0.5% annually from 2016 to 2021. This stat may keep growth-oriented investors away from the grocery space, but fear not, there is an under-the-radar opportunity within this market. Enter Sprouts Farmers market (NASDAQ: SFM) , a grocery stock that can give you both growth and value.
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Sprouts Farmers Market (or just Sprouts) is a health-focused supermarket headquartered in Phoenix, Arizona. Most of its stores are located in California, the Southwest, Texas, and the Southeast. Sprout's value proposition is selling healthy and diet-specific food at a reasonable price. Its stores have a unique layout compared to traditional grocers with an open bulk and produce section at the heart of the store.
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This Stock Gives You Growth and Value in an Unexpected Place