A Pickup Artist's Dream

Sprouts Farmers Market, Inc. continues to be a niche health food grocer which makes the most sense for larger retail players to swoop in for the pickup to gain intriguing growth. 

While the Whole Foods buyout by AMZN last summer seemed, at first blush, like a major setback for SFM because they were not the chosen one, in reality it indicated demand and growth potential for the health food grocery segment. True, AMZN has its own structure to integrate Whole Foods in terms of synergies, but it is hard not to think that the likes of WMT or even TGT have been at least considering SFM as a counter to AMZN. 

Keep in mind, we already know firms are "playing back" at AMZN, as evidenced by the recent Home Depot-for-XPO buzz in order to block AMZN from buying the logistics firm. 

Even if you disagree with that theory, however, there is no denying that the SFM daily chart, below, is sound and looking ripe on the long side with good strength today as it threatens to breach its tight base higher above $25.