Sprouts Farmers Market crushed Q4 estimates while the stock ironically traded towards the post-IPO lows.
The company benefits from a focus on affordable produce and reasonable margins to drive traffic growth.
The stock is recommended long-term holding, but investors shouldn't chase the stock higher at the current levels.
Over the last six months, I encouraged investors on multiple occasions to not view Sprouts Farmers Market (NASDAQ:SFM) so negatively (here and here). Outside of the flash crash, the stock traded down to $20 on two occasions providing attractive entry points.