Sprouts Farmers (SFM) closed at $72.46 in the latest trading session, marking a +1.43% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.5%. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, added 0.43%.
The stock of natural and organic food retailer has fallen by 10.25% in the past month, lagging the Retail-Wholesale sector's gain of 5.24% and the S&P 500's gain of 0.18%.
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 February 19, 2026. The company's upcoming EPS is projected at $0.89, signifying a 12.66% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.16 billion, up 8.19% 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.
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. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.89% higher. Currently, Sprouts Farmers is carrying a Zacks Rank of #2 (Buy).
Investors should also note Sprouts Farmers's current valuation metrics, including its Forward P/E ratio of 12.68. This expresses no noticeable deviation compared to the average Forward P/E of 12.68 of its industry.
We can additionally observe that SFM currently boasts a PEG ratio of 0.71. 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 Food - Natural Foods Products industry currently had an average PEG ratio of 0.92 as of yesterday's close.
The Food - Natural Foods Products industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 202, which puts it in the bottom 18% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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