Sprouts Farmers (SFM) closed the most recent trading day at $72.55, moving -7.69% from the previous trading session. This move lagged the S&P 500's daily loss of 2.06%. Elsewhere, the Dow lost 1.76%, while the tech-heavy Nasdaq lost 2.39%.
Heading into today, shares of the natural and organic food retailer had lost 2.07% over the past month, lagging the Retail-Wholesale sector's gain of 5.12% and the S&P 500's gain of 1.63%.
The upcoming earnings release of Sprouts Farmers will be of great interest to investors. The company's upcoming EPS is projected at $0.89, signifying a 12.66% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $2.16 billion, up 8.18% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $5.27 per share and a revenue of $8.82 billion, demonstrating changes of +40.53% and 0%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Sprouts Farmers. Such recent modifications usually signify the changing landscape of near-term business trends. 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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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, the Zacks Consensus EPS estimate has moved 0.84% higher. Sprouts Farmers is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Sprouts Farmers is presently being traded at a Forward P/E ratio of 13.96. This valuation marks no noticeable deviation compared to its industry average Forward P/E of 13.96.
One should further note that SFM currently holds a PEG ratio of 0.78. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Food - Natural Foods Products industry held an average PEG ratio of 0.99.
The Food - Natural Foods Products industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 237, positioning it in the bottom 4% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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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