Sprouts Farmers (SFM) closed at $67.33 in the latest trading session, marking a +1.49% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 2.05%. On the other hand, the Dow registered a gain of 2.54%, and the technology-centric Nasdaq increased by 2.27%.
The stock of natural and organic food retailer has fallen by 13.95% in the past month, lagging the Retail-Wholesale sector's gain of 1.28% and the S&P 500's loss of 1.49%.
The investment community will be closely monitoring the performance of Sprouts Farmers in its forthcoming earnings report. The company is scheduled to release its earnings on February 19, 2026. The company's earnings per share (EPS) are projected to be $0.89, reflecting a 12.66% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.16 billion, up 8.19% from the year-ago period.
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 +14.22%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Sprouts Farmers should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business 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, 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. The Zacks Consensus EPS estimate has moved 0.89% higher within the past month. Sprouts Farmers is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Sprouts Farmers is currently trading at a Forward P/E ratio of 11.77. This denotes a discount relative to the industry average Forward P/E of 13.03.
We can additionally observe that SFM currently boasts a PEG ratio of 0.66. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SFM's industry had an average PEG ratio of 0.88 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 52, which puts it in the top 22% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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