Sprouts Farmers (SFM) ended the recent trading session at $69.59, demonstrating a -1.86% change from the preceding day's closing price. This change lagged the S&P 500's 0.54% gain on the day. On the other hand, the Dow registered a gain of 1.05%, and the technology-centric Nasdaq increased by 0.56%.
Shares of the natural and organic food retailer witnessed a loss of 12.07% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 3.66%, and the S&P 500's gain of 0.74%.
Market participants will be closely following the financial results of Sprouts Farmers in its upcoming release. The company plans to announce its earnings on February 19, 2026. In that report, analysts expect Sprouts Farmers to post earnings of $0.89 per share. This would mark year-over-year growth of 12.66%. Meanwhile, our latest consensus estimate is calling for revenue of $2.16 billion, up 8.19% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.27 per share and a revenue of $8.82 billion, indicating changes of +40.53% and 0%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Sprouts Farmers. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 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. Within the past 30 days, our consensus EPS projection 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 12.59. This indicates a discount in contrast to its industry's Forward P/E of 13.17.
It's also important to note that SFM currently trades at a PEG ratio of 0.71. 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 0.93 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 50, placing it within the top 21% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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