In the latest trading session, Sprouts Farmers (SFM) closed at $120.41, marking a -1.91% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.49%. At the same time, the Dow added 0.38%, and the tech-heavy Nasdaq gained 0.72%.
Prior to today's trading, shares of the natural and organic food retailer had lost 17.29% lagged the Retail-Wholesale sector's gain of 2.3% and the S&P 500's gain of 2.99%.
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. In the meantime, our current consensus estimate forecasts the revenue to be $2.22 billion, indicating a 14.06% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.28 per share and revenue of $8.93 billion, which would represent changes of +40.8% and +15.66%, respectively, from the prior year.
Any recent changes to analyst estimates for Sprouts Farmers should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.02% rise in the Zacks Consensus EPS estimate. Sprouts Farmers currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Sprouts Farmers is currently being traded at a Forward P/E ratio of 23.25. This represents a premium compared to its industry average Forward P/E of 19.11.
It's also important to note that SFM currently trades at a PEG ratio of 1.4. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Food - Natural Foods Products stocks are, on average, holding a PEG ratio of 1.31 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 181, placing it within the bottom 27% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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