Sprouts Farmers (SFM) closed at $67.32 in the latest trading session, marking a +2.51% move from the prior day. The stock's change was more than the S&P 500's daily loss of 1.57%. Meanwhile, the Dow lost 1.34%, and the Nasdaq, a tech-heavy index, lost 2.04%.
The stock of natural and organic food retailer has fallen by 19.34% in the past month, lagging the Retail-Wholesale sector's loss of 4.94% and the S&P 500's loss of 0.29%.
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. On that day, Sprouts Farmers is projected to report earnings of $0.89 per share, which would represent year-over-year growth of 12.66%. Our most recent consensus estimate is calling for quarterly revenue of $2.16 billion, up 8.19% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.27 per share and revenue of $8.82 billion. These totals would mark changes of +40.53% and +14.22%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Sprouts Farmers. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% higher. Sprouts Farmers is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note Sprouts Farmers's current valuation metrics, including its Forward P/E ratio of 11.66. Its industry sports an average Forward P/E of 11.92, so one might conclude that Sprouts Farmers is trading at a discount comparatively.
We can also see that SFM currently has a PEG ratio of 0.66. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Food - Natural Foods Products industry stood at 0.97 at the close of the market yesterday.
The Food - Natural Foods Products industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 198, finds itself in the bottom 20% echelons of all 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.
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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