In the latest market close, Sprouts Farmers (SFM) reached $158.53, with a -1.01% movement compared to the previous day. The stock exceeded the S&P 500, which registered a loss of 2.36% for the day. Meanwhile, the Dow experienced a drop of 2.48%, and the technology-dominated Nasdaq saw a decrease of 2.55%.
The natural and organic food retailer's stock has climbed by 12.47% in the past month, exceeding the Retail-Wholesale sector's loss of 4.2% and the S&P 500's loss of 5.6%.
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 April 30, 2025. In that report, analysts expect Sprouts Farmers to post earnings of $1.53 per share. This would mark year-over-year growth of 36.61%. Meanwhile, our latest consensus estimate is calling for revenue of $2.19 billion, up 16.28% from the prior-year 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.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Sprouts Farmers. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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 no change in the Zacks Consensus EPS estimate. Sprouts Farmers presently features a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Sprouts Farmers is presently trading at a Forward P/E ratio of 34.4. This denotes a premium relative to the industry's average Forward P/E of 16.69.
We can also see that SFM currently has a PEG ratio of 2.24. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Food - Natural Foods Products stocks are, on average, holding a PEG ratio of 1.56 based on yesterday's closing prices.
The Food - Natural Foods Products industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 177, placing it within the bottom 29% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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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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