11 Best Stocks to Buy According to Jim Simons’ Renaissance Technologies

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

Renaissance Technologies Stake: $663,802,796

Stock Performance (end Q2-October 9): -36.58% 

Number of Hedge Fund Holders: 54

Sprouts Farmers Market, Inc. (NASDAQ:SFM) is one of the best stocks to buy according to Jim Simons’ Renaissance Technologies. On October 13, RBC Capital upgraded Sprouts Farmers Market (NASDAQ:SFM) to Outperform from Sector Perform, lowering its price target to $148 from $176.

The move follows a 42% drop in SFM shares since June, significantly underperforming both grocery peers and the broader market. RBC believes the current valuation already reflects expected sales slowdowns and considers concerns over recent promotions to be overstated.

Looking ahead, RBC projects strong medium-term growth for Sprouts, including low double-digit revenue increases, 4–5% comparable store sales growth, and 8–10% unit expansion. With anticipated EPS growth in the low to mid-teens, the revised $148 target suggests a 43% upside from current levels.

Sprouts Farmers Market, Inc. (NASDAQ:SFM) is a specialty grocery retailer. It operates more than 430 stores across 24 US states. The retailer offers fresh produce, natural and organic foods, vitamins, bulk items, and lifestyle-friendly products such as plant-based, gluten-free, and keto-friendly options.