Focus Stock of the Week (SFM)

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Buy This Undervalued Company

You can buy this company cheap today and take advantage as the market rerates the company for future growth. Buying a great business at a cheap or reasonable price (Warren Buffett Style) is a sure way to grow long term wealth.

Sprouts Farmers Market (SFM) is not like a regular grocery store... you will not find popular brands such as Coke, Pepsi, or Tide. What they sell is a large variety of fresh produce at prices below the competition.


SFM Stock Chart

This niche market is booming. The company recently saw same store sales increase 6.9% through 2020. They are working to improve the supply chain and accelerating new store development with plans to increase the store count 69% by 2026.

Shares right now are priced for zero growth. This solid business is a great buy below its intrinsic value. I believe the company is worth $65 (more than double today price). At this price shares will trade at just 12 times EV/EBITDA.

Take this opportunity to buy a great company at a low price. I suggest a buy up to price of $39 per share.


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Disclosure: I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. The information provided should NOT be considered advice. The topics discussed are risky and have the potential to lose a substantial amount. I am not an investment professional and therefore do not offer individual financial advice. Please do your own research before investing.

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