Jim Cramer Thinks These 13 Stocks Will Benefit From the New Administration

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

Number of Hedge Fund Holders: 37

Sprouts Farmers Market, Inc. (NASDAQ:SFM) is a Cramer favorite and he noted that the company is a “high-quality operator”.

“Cramer fave, Sprouts Farmers Market has only run up 15% month to date and it’s part of the same theme. Then again, Sprouts was already doing great on its own before the election because it’s a really high-quality operator that I like very much.”

Sprouts Farmers Market (NASDAQ:SFM) operates in the U.S., retailing fresh, natural, and organic food products, offering a wide range of perishable and non-perishable items under the Sprouts brand. In the third quarter, the company reported a significant 8.4% increase in same-store sales, contributing to a 14% year-over-year rise in overall revenue, which reached $1.95 billion, surpassing estimates.

This growth was partly driven by the company’s ongoing efforts to expand its store footprint, with nine new locations opened during the quarter. The company focuses on smaller, more efficient store formats, which it believes will improve profitability while maintaining a strong market presence. The company continued to innovate within its product lines, keeping consumer interest high and further emphasizing the Sprouts Brand.

By ensuring that most stores are within 250 miles of a distribution center, the company aims to streamline operations and reduce costs. As a result of these efforts, Sprouts Farmers Market (NASDAQ:SFM) achieved significant financial gains. Gross margins expanded, and operating income surged by 40%, reaching $122.5 million. Additionally, EPS grew from $0.64 to $0.91, comfortably exceeding the forecast. With a total of 428 locations across 23 states, the company continues its growth trajectory, strengthening its position in the retail food market.