Feb. 23, 2026 8:38 PM ETSprouts Farmers Market, Inc. (SFM) StockGary Alexander33.37K FollowersCommentsSprouts Farmers Market has seen shares drop ~50% over the past year amid slowing comp sales and a cautious FY26 outlook.I reiterate my buy rating on SFM, viewing the selloff as an overcorrection given its strong expansion footprint and improving margin profile.SFM plans 40+ new store openings in FY26, focusing on Midwest and Northeast markets, with smaller, higher-margin formats.Store brand sales rose to 26% of revenue in 2025, driving margin upside and providing a unique competitive differentiator.krblokhin/iStock Editorial via Getty ImagesIn 2026, what has been incredibly surprising is the speed with which investors are dumping growth stocks that are running into snags. The stock market has essentially lost all patience for anything less than perfect fundamental execution, butThis article was written byGary Alexander33.37K FollowersWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.Analyst’s Disclosure: I/we have a beneficial long position in the shares of SFM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Comments