Don’t Compare Sprouts to Whole Foods

Now that Sprouts Farmers Market (NASDAQ: SFM  ) is a publicly traded company, it's only natural for investors to want to compare the company's prospects to the gold standard of natural and organic grocery shopping, Whole Foods Market (NASDAQ: WFM  ) .

Fool contributor Steve Heller argues that investors who go down this route could run the risk of dismissing Sprouts as a "second rate" company compared to Whole Foods, and as a result, could be missing out on an interesting growth story.

The reason: Sprouts isn't trying to be the gold standard of natural and organic grocery shopping. Instead, it's trying to be the value leader in the natural and organic space. This distinction is key to understanding Sprouts' growth story, Steve argues.

Check out the video below to get the full story.

The grocery space is in the midst of the biggest paradigm shift since TV dinners became a staple for American households in the 1960s. Only those most forward-looking and capable companies will survive, and they'll handsomely reward those investors who understand the landscape. You can read about the 3 Companies Ready to Rule the future in The Motley Fool's special report. Uncovering these top picks is free today; just click here to read more.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2611888, ~/Articles/ArticleHandler.aspx, 5/31/2016 12:13:45 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 17,789.29 -83.93 -0.47%
S&P 500 2,094.89 -4.17 -0.20%
NASD 4,939.07 5.57 0.11%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

5/31/2016 11:57 AM
KR $35.85 Up +0.14 +0.39%
The Kroger Co. CAPS Rating: ****
WFM $32.18 Up +0.15 +0.47%
Whole Foods Market CAPS Rating: ****