$SFM : Stock with no Tariff exposure and good momentum

SFM : We are revising this stock one more time in our blog series. Sprout Farmers Market SFM is a retailer which sell high quality food with higher margin in good localities and the best part is the products are locally produced and sourced. This makes it immune to the tariff discussions ongoing in the market. Hence, we have seen relative strength in the $SFM. There are very few stocks in S&P 500 which are at or above the ATH. SFM touched its ATH of 178 $ on 28th April amidst the tariff discussion. Currently @ 163 $ SFM has a RSI of 60 which is not in overbought territory.

In the chart below we plot the upward slopping regression channel and we see that the stock is currently sitting at the mid-point of this cannel and the 20 Day SMA is above the 50 Day, 100 Day and 200 Day SMA indicating positive momentum in the stock. The lower bound of the parallel channel is always above the 200 Day SMA indicating strong institutional long term holding capability. We like these kind of stocks which have great technical and good fundamentals with strong institutional holdings.

Verdict : Buy SFM @ 150 $ and DCA @ 160 $. Year end target 200 $