Sprouts Farmers (SFM) ended the recent trading session at $136.01, demonstrating a -2.4% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.27%. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 0.37%.
Shares of the natural and organic food retailer witnessed a loss of 6.31% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 4.53%, and the S&P 500's gain of 1.85%.
The investment community will be closely monitoring the performance of Sprouts Farmers in its forthcoming earnings report. The company is forecasted to report an EPS of $1.16, showcasing a 27.47% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $2.22 billion, reflecting a 14.06% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.28 per share and a revenue of $8.93 billion, signifying shifts of +40.8% and +15.66%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Sprouts Farmers. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.14% lower. Sprouts Farmers currently has a Zacks Rank of #3 (Hold).
Investors should also note Sprouts Farmers's current valuation metrics, including its Forward P/E ratio of 26.39. This valuation marks a premium compared to its industry average Forward P/E of 19.86.
It is also worth noting that SFM currently has a PEG ratio of 1.58. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Food - Natural Foods Products stocks are, on average, holding a PEG ratio of 1.38 based on yesterday's closing prices.
The Food - Natural Foods Products industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 94, placing it within the top 39% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SFM in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Sprouts Farmers Market, Inc. (SFM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
