In the latest close session, Sprouts Farmers (SFM) was down 1.04% at $164.48. The stock trailed the S&P 500, which registered a daily gain of 0.06%. Elsewhere, the Dow gained 0.41%, while the tech-heavy Nasdaq lost 0.39%.
Coming into today, shares of the natural and organic food retailer had lost 4.09% in the past month. In that same time, the Retail-Wholesale sector gained 5.04%, while the S&P 500 gained 5.88%.
The investment community will be closely monitoring the performance of Sprouts Farmers in its forthcoming earnings report. The company is scheduled to release its earnings on July 30, 2025. The company's upcoming EPS is projected at $1.22, signifying a 29.79% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $2.16 billion, showing a 14.34% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.08 per share and a revenue of $8.77 billion, signifying shifts of +35.47% and +13.6%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Sprouts Farmers. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.04% increase. Right now, Sprouts Farmers possesses a Zacks Rank of #3 (Hold).
Digging into valuation, Sprouts Farmers currently has a Forward P/E ratio of 32.72. This represents a premium compared to its industry average Forward P/E of 19.39.
We can also see that SFM currently has a PEG ratio of 2.08. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Food - Natural Foods Products industry had an average PEG ratio of 1.74.
The Food - Natural Foods Products industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 97, this industry ranks in the top 40% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Sprouts Farmers Market, Inc. (SFM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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