Sprouts Farmers (SFM) closed the most recent trading day at $81.06, moving +1.07% from the previous trading session. This change outpaced the S&P 500's 0.19% loss on the day. At the same time, the Dow lost 0.8%, and the tech-heavy Nasdaq lost 0.1%.
The stock of natural and organic food retailer has fallen by 0.24% in the past month, lagging the Retail-Wholesale sector's gain of 5.42% and the S&P 500's gain of 2.26%.
Investors will be eagerly watching for the performance of Sprouts Farmers in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.89, reflecting a 12.66% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $2.16 billion, reflecting a 8.18% rise from the equivalent 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.
Investors should also take note of any recent adjustments to analyst estimates for Sprouts Farmers. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Over the past month, there's been a 0.84% rise in the Zacks Consensus EPS estimate. Right now, Sprouts Farmers possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Sprouts Farmers is holding a Forward P/E ratio of 14.24. For comparison, its industry has an average Forward P/E of 14.24, which means Sprouts Farmers is trading at no noticeable deviation to the group.
Investors should also note that SFM has a PEG ratio of 0.8 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Food - Natural Foods Products industry stood at 0.96 at the close of the market yesterday.
The Food - Natural Foods Products industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 238, placing it within the bottom 3% of over 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.
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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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