The most recent trading session ended with Sprouts Farmers (SFM) standing at $160.19, reflecting a -0.05% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily loss of 0.17%. Elsewhere, the Dow saw a downswing of 0.39%, while the tech-heavy Nasdaq depreciated by 0.05%.
Prior to today's trading, shares of the natural and organic food retailer had gained 13.68% over the past month. This has outpaced the Retail-Wholesale sector's loss of 2.42% and the S&P 500's loss of 3.94% in that time.
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 April 30, 2025. It is anticipated that the company will report an EPS of $1.53, marking a 36.61% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $2.19 billion, showing a 16.28% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.66 per share and a revenue of $8.64 billion, representing changes of +24.27% and +11.88%, 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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Sprouts Farmers currently has a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Sprouts Farmers is holding a Forward P/E ratio of 34.42. This valuation marks a premium compared to its industry's average Forward P/E of 16.7.
Investors should also note that SFM has a PEG ratio of 2.24 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. SFM's industry had an average PEG ratio of 1.56 as of yesterday's close.
The Food - Natural Foods Products industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 85, putting it in the top 35% 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.
You can find more information on all of these metrics, and much 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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