Investors looking for stocks that have not only weathered the tariff-driven selloff but also surged in 2025 need look no further than Sprouts Farmers Market, Inc. SFM.

This specialty grocery company has soared 25% in 2025 as part of 370% rally over the past two years, boosted by rising earnings revisions.

Despite its impressive run and tariff resilience, Sprouts Farmers Market stock is far from overheated. 

Why This Retail Stock Is a Must-Buy

Sprouts Farmers Market is a somewhat under-the-radar specialty grocery store powerhouse.

The Phoenix-headquartered company operates roughly 440 stores across 24 states (it opened 33 stores in 2024), with a bulk of SFM locations scattered across California, Texas, Arizona, Florida, and Colorado. 

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Known for its fresh, natural, and organic offerings, Sprouts appeals to higher-income consumers who are less impacted by economic downturns. Moreover, grocery shopping is often the last expense consumers cut during uncertain times, enhancing SFM’s resilience.

Sprouts is driving product innovation, expanding its e-commerce business, and growing its higher-margin private-label segment while maintaining competitive pricing. Its Sprouts brand accounted for 23% of Q4 2024 sales.

The company launched 7,100 new items in 2024, including over 300 under the Sprouts brand, demonstrating its agility in meeting consumer trends.

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On the e-commerce front, partnerships with Uber Eats, DoorDash, and Instacart helped boost digital revenue by 37% in Q4. Management also prioritizes efficiency in the competitive grocery sector, with over 85% of stores located within 250 miles of a distribution center.

The Soaring Grocery Company's Impressive Outlook

Sprouts thrives despite competition from Amazon AMZN-owned Whole Foods, Target TGT, and other pure-play grocery chains.

In 2024, the company grew sales by 13%, with comparable store sales up 7.6%, driving a 50% increase in adjusted earnings.

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SFM is projected to boost same-store sales by 6% in 2025, marking its second-best annual expansion in five years. Revenue is expected to grow by 12% in 2025 and 11% in 2026, reaching $9.54 billion.

The firm is set to follow its strong EPS growth with 24% year-over-year expansion in 2025 and 14% in 2026. The company has exceeded quarterly earnings estimates by an average of 15% over the past four periods, and its earnings estimates have surged since its Q4 release.

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SFM’s FY25 consensus earnings estimate has risen 10% in recent months, with FY26 estimates up 13%.

These revisions have earned SFM a Zacks Rank #1 (Strong Buy) and extended a streak of positive earnings revisions that have lifted its FY26 consensus by 55% over the past 12 months.

Breaking Down This Strong Buy Stock’s Technical Levels and More 

SFM stock traded roughly sideways from 2015 to 2022. It has broken out since then, soaring 400% over the past three years, far outpacing its industry’s 42% gain.

Over the last 12 months, SFM has skyrocketed 150%, surpassing its industry’s 30% climb and the S&P 500’s 8% gain, while Target fell -45% and Amazon dipped -5%.

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SFM has climbed 25% YTD, compared to the S&P 500’s -8% decline. Yet, the stock trades 10% below its recent highs. SFM has rebounded after finding support near its post-Q3 earnings breakout levels and its December lows.

It is now above its 50-day moving average and well below overbought RSI levels, while remaining far from overheated on a 10-year scale.

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SFM’s strong earnings growth is reflected in its 2.1 price/earnings-to-growth (PEG) ratio, which marks a 50% discount to its 10-year highs and 25% value to its industry.

Time to Buy SFM Stock as Wall Street Seeks Safe Havens

Sprouts generated $645.2 million in operating cash flow last year, up 38% YoY and 76% above its 2021 figure. This strong cash position enabled SFM to self-fund $200 million in capital expenditures and return $238 million to shareholders through buybacks.

While no company is immune to tariff concerns, Sprouts makes a compelling case for both near-term stability and long-term growth, making it a top pick for investors.

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This article originally published on Zacks Investment Research (zacks.com).

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