Sprouts Farmers (SFM) Suffers a Larger Drop Than the General Market: Key Insights

By Zacks Equity Research | October 22, 2025, 5:50 PM

Sprouts Farmers (SFM) ended the recent trading session at $108.10, demonstrating a -1.76% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.53%. At the same time, the Dow lost 0.71%, and the tech-heavy Nasdaq lost 0.93%.

Shares of the natural and organic food retailer have depreciated by 7.82% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 2.98%, and the S&P 500's gain of 1.13%.

Investors will be eagerly watching for the performance of Sprouts Farmers in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 29, 2025. In that report, analysts expect Sprouts Farmers to post earnings of $1.17 per share. This would mark year-over-year growth of 28.57%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.23 billion, up 14.78% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.32 per share and a revenue of $8.93 billion, signifying shifts of +41.87% and +15.66%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Sprouts Farmers. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Sprouts Farmers is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Sprouts Farmers is currently trading at a Forward P/E ratio of 20.7. This valuation marks a premium compared to its industry average Forward P/E of 20.5.

One should further note that SFM currently holds a PEG ratio of 1.24. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Food - Natural Foods Products industry had an average PEG ratio of 1.19 as trading concluded yesterday.

The Food - Natural Foods Products industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 96, positioning it in the top 39% of all 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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Sprouts Farmers Market, Inc. (SFM): Free Stock Analysis Report

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