Out Fox The $treet

Small Cap Insight After disappointing guidance, The Fresh Market ( TFM ) slumped 13% due in a large point to very high expectations for the grocery chain. Sure the organic and fresh grocer plays in a compelling secular trend, but it also faces a tough competitive environment with several companies raising significant funds to expand regional footprints. Not to mention the sector leader has made a big deal about driving down prices to produce growth. The company operates 136 stores in 26 states and expects to open 21 to 22 stores this year with a high concentration in Q3. With the U.S. supermarket listed as a $600 billion industry, Fresh Market has plenty of room to grow. The Nutrition Business Journal estimates that spending on the natural and organic sector has been growing at a rate of 10% annually with sales only reaching $43 billion in 2011. That growth rate would produce a total of just over $51 billion in 2013, but a number that wouldn't even reach 10% of...

With the smashing success of the Sprouts Farmers Market (NASDAQ: SFM ) IPO, one has to wonder if the Natural Grocers by Vitamin Cottage (NYSE: NGVC ) stock is undervalued. Natural Grocers has a faster growth rate and the stock didn’t have the same IPO pop. The company competes in the quickly growing natural and organic grocery sector against the likes of Sprouts, The Fresh Market (NASDAQ: TFM ) and Whole Foods more » Disclosure: No position mentioned. Please review the disclaimer page for more details.