Natural Grocers by Vitamin Cottage Inc (NGVC): Is This Stock the Next Whole Foods Market, Inc. (WFM)?

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Foolish bottom line

Natural Grocers has three catalysts that could propel the stock higher:

Secular trend: Organic grocery sales are projected to double over the next decade driven by the desire to live healthier lifestyles. This provides a nice tailwind for the company.

Accelerating growth: Natural Grocers is just ramping up what could be a multi-year growth campaign. Accelerating earnings and revenue growth spell my two favorite words in the English language: multiple expansion!

Acquisition target: While the company is strong enough to survive as a stand-alone entity, the grocery business favors size and scale. Natural Grocers would make an attractive acquisition target to a larger competitor like Whole Foods or The Fresh Market.

The article Is This Stock the Next Whole Foods? originally appeared on Fool.com and is written by Robert Baillieul.

Robert is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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