12 Best Grocery Store Stocks to Buy Now

6. Sprouts Farmers Market, Inc. (NASDAQ:SFM)

Number of Hedge Fund Holders: 47

Sprouts Farmers Market, Inc. (NASDAQ:SFM) is a specialty natural and organic food retailer that offers a specialty grocery experience. Its products are made of organic, plant-based, gluten-free, and similar lifestyle-friendly ingredients. The company operates around 407 stores in 23 states.

Sprouts Farmers Market, Inc. (NASDAQ:SFM) reported a 59.2% growth in net income in fiscal Q4 2024, going to $79.6 million from $50 million registered in the same period last year. Net sales rose 17.5% year-over-year to $1.996 billion. Similarly, net income for the full year grew by 47% to $380 million, while revenues grew by 12.9% to $7.7 billion. This strong performance was broad-based and balanced across channels, geographies, baskets, and traffic.

The company’s e-commerce business is also growing, reporting a 37% sales growth in fiscal Q4 2024 and representing 14.5% of its total sales for the quarter. Apart from these solid results, the company expanded its footprint to Wyoming, marking its 24th state in the US. Sprouts Farmers Market, Inc. (NASDAQ:SFM) also opened 33 new stores, which performed robustly and surpassed the previous year’s performance.