Recession Resistant Investing: 10 Best Grocery Stocks To Buy Now

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

Number of Hedge Fund Holders: 47

Sprouts Farmers Market, Inc. (NASDAQ:SFM) is a specialty natural and organic food retailer that offers a specialty grocery experience. Its products are made of organic, plant-based, gluten-free, and similar lifestyle-friendly ingredients. The company operates around 407 stores in 23 states and takes the sixth spot on our list of the best grocery stocks to buy for recession-resistant investing.

On March 17, Deutsche Bank upgraded Sprouts Farmers Market, Inc. (NASDAQ:SFM) to Buy from Hold with a $190 price target. The analyst said the firm holds a “high conviction” in its growth outlook, primarily because of its differentiated product assortment and a transition to healthier consumer eating trends. The firm told investors in a research note that it had been a fan of the Sprouts Farmers Market, Inc.’s (NASDAQ:SFM) management team and story but was waiting for a more suitable entry point.

The company also has strong financials, as it reported a 59.2% growth in net income in fiscal Q4 2024 while net sales rose 17.5% year-over-year. Similarly, net income for the full year grew by 47% to $380 million, while revenues grew by 12.9% to $7.7 billion. This improvement was attributed to broad-based and balanced growth across channels, geographies, baskets, and traffic.