The Simply Good Foods Company (SMPL) is a result of the 2017 combination between Conyers Park Acquisition Corp. and Atkins Nutritionals, Inc., explains Nancy Zambell, editor of Wall Street's Best Invsetments.

The company has a market cap of $2.7 billion. It produces branded nutritional foods and snack products, including nutrition bars, ready-to-drink (RTD) shakes, snacks and confectionery products that are in the U.S. and internationally.

It offers its products under various brands, such as Atkins, SimplyProtein, Atkins Endulge, and Quest Nutrition brand. Most of its products are high-protein, and follow the recommended foods used in the Atkins diet.

Shares of the company have been on a tear this year, gaining almost 61% in the last 52-weeks. The impetus for the share price increase has been tremendous growth for the wellness and fitness industry, which is now worth $4.2 trillion.

Simply Good is taking advantage of that expansion and has posted 18% annual CAGR for the past five years and is expected to surpass that with a 28% CAGR for the next five years. The company has seen 11 straight years of retail takeaway growth, for a compound annual growth rate of almost 15%.

In its fiscal 2019, its e-commerce sales increased 60%. And in fiscal fourth quarter, sales at SMPL rose 28.6% and adjusted EBITDA was up greater 33%. Although shares have risen significantly, I believe there is more growth to come.  My target price is $37.

(Editor's note: Nancy Zambell chose medical device maker Smith & Nephew plc (SNN) as her Top Pick in 2019; the shares are up 27%. The advisor now explains, "SNN has continued to bring innovative products to market, but its growth seems to be slowing, so I would suggest banking your profits at this time.")

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