In the latest trading session, Sprouts Farmers (SFM) closed at $106.25, marking a -1.88% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.79%. Meanwhile, the Dow gained 1.01%, and the Nasdaq, a tech-heavy index, added 1.15%.
Heading into today, shares of the natural and organic food retailer had lost 2.77% over the past month, lagging the Retail-Wholesale sector's loss of 1.37% and the S&P 500's gain of 1.27%.
Analysts and investors alike will be keeping a close eye on the performance of Sprouts Farmers in its upcoming earnings disclosure. The company's earnings report is set to go public on October 29, 2025. The company is forecasted to report an EPS of $1.17, showcasing a 28.57% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.23 billion, indicating a 14.78% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.32 per share and revenue of $8.93 billion. These totals would mark changes of +41.87% and +15.66%, respectively, from last year.
Any recent changes to analyst estimates for Sprouts Farmers should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, the Zacks Consensus EPS estimate remained stagnant. Sprouts Farmers is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Sprouts Farmers's current valuation metrics, including its Forward P/E ratio of 20.37. This valuation marks a discount compared to its industry average Forward P/E of 20.4.
One should further note that SFM currently holds a PEG ratio of 1.22. 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. The Food - Natural Foods Products was holding an average PEG ratio of 1.19 at yesterday's closing price.
The Food - Natural Foods Products industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 98, finds itself in the top 40% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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