We recently published a list of Why These 15 Consumer Defensive Stocks Are Surging in 2025. In this article, we are going to take a look at where Sprouts Farmers Market Inc (NASDAQ:SFM) stands against other consumer defensive stocks that are surging in 2025.
The stock market has taken a sharp turn after two years of blockbuster gains, and many investors have felt uneasy. These investors are now turning to consumer defensive stocks due to growth stocks sputtering amid a new wave of tariffs rattling global trade.
Consumer defensive stocks provide essential goods and services that people rely on regardless of economic conditions and are more insulated during market downturns. Investors have piled into consumer defensive stocks for that reason, and it’s a good idea to look into the biggest winners in this sector.
Even during bear markets, there are pockets of the market that perform exceptionally well. For example, I identified Why These 15 Healthcare Stocks Are Surging in 2025 in another article.
For this article, I screened the best-performing consumer defensive stocks year-to-date.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A bright, colorful display of fresh produce in a grocery store.
Number of Hedge Fund Holders In Q4 2024: 47
Sprouts Farmers Market Inc (NASDAQ:SFM) is a specialty retailer of fresh, natural, and organic food products headquartered in Phoenix, operating more than 440 stores in 24 states across the United States.
The company’s stock has surged in 2025 primarily due to its better-than-expected fourth quarter results and significantly raised guidance for the full year. Sprouts reported $2 billion in revenue for Q4.
It exceeded expectations of $1.95 billion and grew 18% year-over-year, while comparable store sales grew by 11.5%.
The company’s optimistic outlook for 2025 has fueled investor confidence, with forecasted EPS of $4.52 to $4.68.
For the full year 2024, Sprouts reported diluted EPS of $3.75 on net sales of $7.7 billion, up 13% from 2023. The retailer’s expansion strategy remains strong, with 33 new stores opened in 2024 and plans to open at least 35 new locations in 2025.
