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Goodfood Market (TSX:FOOD) Stock Soars 199%: Should You Buy at $9.36 Apiece?

Shares of the online grocery company Goodfood Market (TSX:FOOD) are on a roll, rising about 199% so far this year. Its stock has jumped over 528% after hitting its low in March 2020. Owing to the stellar appreciation in its stock price, Goodfood Market is part of the Toronto Stock Exchange’s 30 top-performing stocks (TSX30).

Goodfood Market shares benefit from the growing demand for online grocery and favourable industry trends. The pandemic came as a significant growth catalyst for the company. Goodfood Market, part of essential services, continued to run its operations amid the pandemic. Moreover, it witnessed an acceleration in demand. 

Due to the pent-up demand, Goodfood Market reported a profit for the first time in its history. Its revenues and adjusted gross profit jumped by 74% and 50%, respectively, during the most recent quarter.

The accelerated demand and stellar growth in its active subscriber base are leading to a rally in its stock. But is this uptrend in Goodfood Market stock sustainable? Or will the demand fizzle out in the post-pandemic phase and drag its stock down? 

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