Sprouts Farmers (SFM) closed at $111.36 in the latest trading session, marking a -3.78% move from the prior day. This change lagged the S&P 500's daily loss of 0.5%. Elsewhere, the Dow lost 0.38%, while the tech-heavy Nasdaq lost 0.5%.
The stock of natural and organic food retailer has fallen by 19.95% in the past month, lagging the Retail-Wholesale sector's gain of 0.66% and the S&P 500's gain of 2.74%.
The investment community will be paying close attention to the earnings performance of Sprouts Farmers in its upcoming release. The company is predicted to post an EPS of $1.16, indicating a 27.47% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $2.22 billion, showing a 14.06% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.28 per share and a revenue of $8.93 billion, representing changes of +40.8% and +15.66%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Sprouts Farmers. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Sprouts Farmers is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that Sprouts Farmers has a Forward P/E ratio of 21.92 right now. This represents a premium compared to its industry average Forward P/E of 20.85.
Also, we should mention that SFM has a PEG ratio of 1.32. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Food - Natural Foods Products industry was having an average PEG ratio of 1.25.
The Food - Natural Foods Products industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 102, positioning it in the top 42% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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