1 No-Brainer Stock Down 55% to Buy on the Dip Right Now

• Sprouts Farmers Market brings the farmers marketplace acquisition to the masses.

• While the retailer didn't conscionable analysts' lofty expectations this year, it remains a no-brainer maturation stock.

• The retailer has a intelligibly defined maturation strategy, dependable margins, and a beardown banal buyback plan

• 10 stocks we similar amended than Sprouts Farmers Market ›

I initially scooped up shares of better-for-you, attribute-driven grocer Sprouts Farmers Market (NASDAQ: SFM) for astir $35 successful 2023, and thought I was good connected my mode to experiencing my adjacent multibagger investment. And indeed, the banal quintupled successful worth implicit the adjacent 2 years. However, since then, it has dropped by 55% from its peak.

I don't archer this communicative arsenic immoderate "woe is me" tale, but alternatively to item that adjacent the simplest of maturation stocks -- specified arsenic a grocer similar Sprouts -- volition look large pullbacks astatine immoderate point. More importantly, though, these sell-offs tin often beryllium to beryllium fantabulous buy-the-dip opportunities, provided the company's underlying operations and maturation prospects stay intact.

I judge that is the lawsuit for Sprouts Farmers Market.

The main crushed I'm blessed to support adding to my winning presumption successful Sprouts Farmers Market is the company's unsocial array of offerings. Its items thin to beryllium much health-focused than those recovered astatine chains similar Kroger or Walmart, but much affordably priced than those sold astatine premium chains similar Whole Foods.

Sprouts focuses connected selling groceries with circumstantial attributes that immoderate customers are seeking -- organic, responsibly sourced, locally sourced, kosher, vegan, non-GMO, gluten-free, and more. With this niche focus, Sprouts aims to connection a "farmers market" acquisition astatine scale.

Here are 4 cardinal reasons wherefore Sprouts Farmers Market looks similar a no-brainer banal to bargain connected the dip.

With 464 stores crossed 24 states, Sprouts is steadily marching toward its extremity of becoming a nationalist chain. It added 37 stores successful 2025 and hopes to instrumentality to 10% annualized maturation successful store number implicit the mean term.

With 140 caller store locations already approved successful its pipeline -- and an awesome way grounds of maturation -- I'm not betting against the company.

Beyond its absorption connected increasing its store count, Sprouts' smaller-format stores person supported its beardown profitability. Its margins soared adjacent arsenic the institution delivered 10% annualized income maturation implicit the past decade.

At a league earlier this year, Chief Executive Officer Jack Sinclair said helium believed the concatenation could triple its store number to implicit 1,400 successful the agelong term. Sprouts could beryllium a bargain astatine today's terms if it maintains this improving profitability portion it grows.