Sprouts Farmers (SFM) closed the most recent trading day at $80.64, moving +1.22% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.19%. On the other hand, the Dow registered a gain of 0.66%, and the technology-centric Nasdaq decreased by 0.03%.
Shares of the natural and organic food retailer witnessed a loss of 6.55% over the previous month, trailing the performance of the Retail-Wholesale sector with its loss of 1.45%, and the S&P 500's gain of 0.54%.
Investors will be eagerly watching for the performance of Sprouts Farmers in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.89, indicating a 12.66% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $2.16 billion, indicating a 8.14% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.27 per share and revenue of $8.82 billion, indicating changes of +40.53% and 0%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Sprouts Farmers. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Sprouts Farmers is carrying a Zacks Rank of #4 (Sell).
From a valuation perspective, Sprouts Farmers is currently exchanging hands at a Forward P/E ratio of 14.27. For comparison, its industry has an average Forward P/E of 14.27, which means Sprouts Farmers is trading at no noticeable deviation to the group.
We can additionally observe that SFM currently boasts a PEG ratio of 0.86. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Food - Natural Foods Products industry stood at 0.98 at the close of the market yesterday.
The Food - Natural Foods Products industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 238, this industry ranks in the bottom 3% of all industries, numbering over 250.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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