3 Stocks to Gain Big From Steady Growth in Online Grocery Sales

Industry Overview - The retail sector has faced challenges due to inflation, leading consumers to reduce spending on discretionary items while maintaining grocery purchases, which have shown steady growth [1] - Retail sales increased by 0.2% month-over-month and 3.1% year-over-year in February, with online retail sales also rising by 3.1% [7] Online Grocery Sales - Online grocery sales surged by 31% in February, reaching $10.3 billion compared to $7.9 billion a year ago, marking the second-highest monthly sales recorded in the U.S. [4] - The delivery segment of online grocery sales experienced a significant 45% increase, rising from $3.1 billion to $4.5 billion year-over-year, driven by a rise in monthly active users [5] Investment Opportunities - Three grocery stocks identified as having strong potential for 2025 are Beyond Meat, United Natural Foods, and Utz Brands, all of which have shown positive earnings estimate revisions in the last 60 days [2][3] - Beyond Meat has an expected earnings growth rate of 31.6% for the current year, with a Zacks Rank of 2 [10] - United Natural Foods is projected to have an earnings growth rate of over 100% for the current year, also holding a Zacks Rank of 2 [13] - Utz Brands has an expected earnings growth rate of 10.4% for the current year, maintaining a Zacks Rank of 2 [14]