Jim Cramer has lately received a lot of questions from investors who are wondering if they should buy stocks like Whole Foods and Sprouts Market. His answer? Welcome to the most overcrowded group of stocks out there.
The "Mad Money" host understands why they seem appealing, too. Whole Foods has a price tag of $41 and is down more than 18 percent for the year. Even Sprouts Market is looking pretty delicious for a buy, as it is down 10 percent year-to-date.
But it was Cramer's interview with Target CEO Brian Cornell on Monday that woke him up to the dangers of bottom feeding in the natural and organic food space. Cornell shared that he wants Target to grow bigger into "wellness" and confirmed that the company is just getting started on its expansion of the food aisle.
"I say welcome to the most crowded area of the supermarkets and big-box business these days, because it's a double-digit-growth category at a moment when supermarkets have zero to low single-digit growth in their center of store merchandise," Cramer said.