In this article, we will take a look at the 10 Best Grocery Stocks to Buy According to Hedge Funds.
The U.S. government’s emphasis on tariffs has created uncertain circumstances for retailers. The National Retail Federation’s (NRF) executive vice president of government relations, David French, said that “binding trade agreements that truly open markets by lowering tariffs, not raising them,” should be the administration’s motive. However, the government has been doing the opposite. NRF has warned that the tariffs will directly lead to higher prices, decreased hiring, and fewer capital expenditures.
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“Retailers have been able to hold the line on pricing so far, but the new tariffs will impact merchandise in the coming weeks. We have heard directly from small retailers who are concerned about their ability to stay in business in the face of these unsustainable tariff rates,” added French.
According to a July poll by the Associated Press and the National Opinion Research Center, almost 90% of Americans considered the cost of groceries a source of stress. 53% of Americans describe it as a ‘major’ source of stress.
During the Q2 FY2026 earnings call, Walmart CEO Doug McMillon highlighted the impact of tariffs. McMillon said that they have been able to mitigate many of the tariff costs so far, but they are rising each week and will continue to do so throughout the year.
“The way things have played out so far, the impact of tariffs has been gradual enough that any behavioral adjustments by the customer have been somewhat muted. But as we replenish inventory at post-tariff price levels, we’ve continued to see our costs increase each week, which we expect will continue into the third and fourth quarters,” said McMillon.
Fed Chairman Jerome Powell has hinted that the central bank is preparing to soon restart interest rate cuts, indicating the labor market’s weakness even as inflation rises. During his final speech on August 22, Powell said, “The balance of risk appears to be shifting.” With the softening of the labor market and inflation risks contained, “the shifting balance of risks may warrant adjusting our policy stance,” added Powell.
With these market trends in mind, let’s turn to the 10 Best Grocery Stocks to Buy According to Hedge Funds.
Our Methodology
To compile the list of the 10 best grocery stocks to buy according to hedge funds, we shortlisted the grocery store companies from the Finviz Screener and Google Search. We then ranked these best grocery stocks in ascending order of the number of hedge fund holders. The data for hedge funds is taken from Insider Monkey’s Hedge Fund database, updated as of Q2 2025.
Note: The data was recorded on August 27.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Grocery Stocks to Buy According to Hedge Funds
10. Natural Grocers by Vitamin Cottage, Inc. (NYSE:NGVC)
Number of Hedge Fund Holders: 20
Natural Grocers by Vitamin Cottage, Inc. (NYSE:NGVC) is one of the best grocery stocks to buy according to hedge funds. On August 22, Natural Grocers by Vitamin Cottage, Inc. (NYSE:NGVC) announced that customers can enjoy savings of up to 40% off during the Labor Day weekend.
Natural Grocers is celebrating the long weekend from August 29 to September 4, 2025, offering customers notable discounts on select items. The company will also support regenerative organic farming in the U.S. during the month of September with its non-profit partners at the Rodale Institute. Moreover, between September 10 and 13, customers can enjoy additional savings of more than 41% off Natural Grocers’ Always Affordable prices on select organic products.
The company has also announced plans to close its Austin store located at Arbor Walk. The store will close on October 2, 2025, while customers can enjoy closing sales with 25% off on all items from September 2.
Natural Grocers by Vitamin Cottage, Inc. (NYSE:NGVC), through its subsidiaries, retails natural and organic groceries and dietary supplements in the U.S.
9. Grocery Outlet Holding Corp. (NASDAQ:GO)
Number of Hedge Fund Holders: 30
Grocery Outlet Holding Corp. (NASDAQ:GO) is one of the best grocery stocks to buy according to hedge funds. On August 26, Grocery Outlet Holding Corp. (NASDAQ:GO) announced the appointment of Frank Kerr as the Executive Vice President and Chief Store Operations Officer of the company.
Kerr is set to take the executive role on September 15, 2025. Kerr hails from extensive leadership experience in the grocery retail space and has a strong track record of driving growth, efficiency, and profitability across large stores.
“Frank brings operational expertise across a multitude of functional areas, including store operations, marketing, strategy, and market expansion, to support our independent operators to drive execution and store performance in our next chapter of profitable growth. We look forward to welcoming Frank to our team,” said Jason Potter, President and CEO of Grocery Outlet.
On average, Wall Street analysts have given Grocery Outlet Holding. (NASDAQ:GO) Hold rating, with an average downside of 11%, as of August 27. Over the last month, GO shares have soared over 30% driven by robust Q2 FY2025 results. For the third quarter, the company reaffirmed its guidance, expecting comp sales growth of 1.5% to 2%, gross margin of 30% to 30.5%, and adjusted EPS of $0.17 to $0.19. Grocery Outlet’s earnings are anticipated to be in line with analysts’ estimates, and the company attributes improved EPS guidance to lower expected interest expense. On August 7, Michael Lasser from UBS reiterated a Hold rating on GO, increasing the price target from $17 to $18.
Grocery Outlet Holding Corp. (NASDAQ:GO) is a renowned retailer of name-branded consumables and fresh products sold via a network of independently operated stores.
