Seeking Alpha: Natural Grocers Still Looks Like An Unnatural Growth Opportunity

In the five or so months since I wrote about Natural Grocers by Vitamin Cottage (NGVC), and suggested that growth-oriented investors should check out this emerging organic/natural foods retailer, the shares have climbed a solid 25%. That's not bad relative to the approximately 10% gain in the S&P 500, the slightly lower gain in Whole Foods (WFM), or the very disappointing performances of The Fresh Market (TFM) and Sprouts (SFM). What's even better is that Natural Grocers' underlying financial performance continues to validate a call that this is a solid growth stock for investors to consider.

Natural Grocers is only about 6% along its path to a 1,100-store national footprint. What's more, the company is still too small to really benefit from better pricing from distributors and leveraging its own private label brands. Plenty can still go wrong along the path towards being a "next Whole Foods", and this is by no means a safe stock, but the growth potential can support a fair value in the neighborhood of $40 to $45 today.

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Natural Grocers Still Looks Like An Unnatural Growth Opportunity