Goldman Sachs Notes Slower-Than-Expected Early-Year Comps for Sprouts Farmers Market, Inc. (SFM)

Sprouts Farmers Market, Inc. (NASDAQ:SFM) is among the 20 Best Investments in 2026.

The seventh stock on our list of best investments is Sprout Farmers Market, Inc. (NASDAQ:SFM).

TheFly reported on February 20 that Goldman Sachs lowered its price target on SFM to $111 from $130 and kept a Buy rating. Despite falling short on gross margins, the company's fourth-quarter results surpassed comparable-store sales projections. Additionally, early-year patterns revealed slower-than-expected comps, which caused the full-year 2026 projection to fall short of expectations. The analyst points out that the amended target and outlook have context because these lower comp trends are generally acknowledged and have taken into account in current expectations.

Sprout Farmers Market, Inc. (NASDAQ:SFM) released its fourth quarter and year-end 2025 financial results on February 19. The company reported strong revenue and earnings growth, with Q4 net sales reaching $2.1 billion and diluted EPS rising to $0.92 from $0.79 a year earlier. With a 14% increase in full-year revenues of $8.8 billion and an EPS of $5.31, the company kept growing and also opened 477 stores in 24 states.

Despite these encouraging results, the company indicated a cautious forecast for 2026 and cited first-half headwinds from challenging prior-year comparisons and a turbulent macro environment. Although SFM is confident in its long-term development trajectory, guidance highlights challenges ahead and projects diluted EPS between $5.28 and $5.44 for the full year and a minor negative to modest improvement in comparable-store sales.

Sprout Farmers Market, Inc. (NASDAQ:SFM) is a grocery retail chain offering fresh, natural, and organic products, including produce, bulk foods, and supplements, focusing on healthy living and affordable wellness for customers.

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