Sprouts Farmers (SFM) ended the recent trading session at $125.52, demonstrating a -2.61% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.13%. Meanwhile, the Dow lost 0.27%, and the Nasdaq, a tech-heavy index, lost 0.07%.
The natural and organic food retailer's shares have seen a decrease of 10.88% over the last month, not keeping up with the Retail-Wholesale sector's gain of 2.5% and the S&P 500's gain of 2.71%.
The investment community will be closely monitoring the performance of Sprouts Farmers in its forthcoming earnings report. The company's upcoming EPS is projected at $1.16, signifying a 27.47% increase compared to the same quarter of the previous 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 full year, the Zacks Consensus Estimates project earnings of $5.28 per share and a revenue of $8.93 billion, demonstrating changes of +40.8% and +15.66%, respectively, from the preceding year.
Any recent changes to analyst estimates for Sprouts Farmers should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.02% higher. Sprouts Farmers is currently a Zacks Rank #2 (Buy).
From a valuation perspective, Sprouts Farmers is currently exchanging hands at a Forward P/E ratio of 24.41. For comparison, its industry has an average Forward P/E of 18.73, which means Sprouts Farmers is trading at a premium to the group.
It's also important to note that SFM currently trades at a PEG ratio of 1.47. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Food - Natural Foods Products industry was having an average PEG ratio of 1.32.
The Food - Natural Foods Products industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 49, putting it in the top 20% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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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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