The bulls are charging ahead today because Grove Collaborative (NYSE:GROV) just revealed an agreement with three notable retail store chains: Kohl’s (NYSE:KSS), Giant Eagle and Meijer. Amazingly, GROV stock shot up more than 60% this morning on the store expansion news.
All of a sudden, traders on Wall Street were getting familiar with Grove Collaborative. Launched in 2016, Grove “creates and curates more than 150 high-performing eco-friendly brands.” The categories of brands include household cleaning, personal care, laundry and clean beauty as well as baby and pet-care products.
It’s not a huge company, as Grove Collaborative’s market capitalization stands just under $1 billion. Yet, Grove is getting a whole lot of attention today. The implications transcend the company, as Grove’s growth indicates that today’s retailers are leaning toward eco-friendly product lines.
Last year, Grove Collaborative’s products could be found in Target (NYSE:TGT) stores. This, already, was a huge coup for Grove. Now, Wall Street is learning that Grove Collaborative’s Earth-friendly fare will be available in Giant Eagle, Meijer and — most significantly — Kohl’s locations.
What’s Happening with GROV Stock?
To be honest, GROV stock hasn’t been around that long. In fact, Grove Collaborative just went public on the New York Stock Exchange last month. This transpired after a special purpose acquisition company (SPAC) deal with Virgin Group Acquisition Corp.
Yesterday, the Grove Collaborative share price was close to $4. Today, it’s up more than 60% — at one point, the stock was up 75% — and is pushing the $7 level.
As you might expect, Grove Collaborative co-founder and CEO Stuart Landesberg is ecstatic. “We are excited to bring Grove Co.’s plastic-free home essentials into more stores, and to introduce new consumers to the brand,” Landesberg declared.
But again, there’s a bigger-picture story here. Landesberg hinted at this, explaining, “Grove Co.’s substantial retail expansion is a testament to the evolving consumer products landscape, where consumers are demanding more sustainable options.”
For today, though, all eyes are on the stunning run-up in GROV stock. Being eco-friendly is fine, but for wide-eyed traders today, it’s all about the green on the screen.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.