The most recent trading session ended with Sprouts Farmers (SFM) standing at $166.68, reflecting a +1.22% shift from the previouse trading day's closing. The stock lagged the S&P 500's daily gain of 2.03%. On the other hand, the Dow registered a gain of 1.23%, and the technology-centric Nasdaq increased by 2.74%.
Prior to today's trading, shares of the natural and organic food retailer had gained 9.94% over the past month. This has outpaced the Retail-Wholesale sector's loss of 2.36% and the S&P 500's loss of 5.07% in that time.
The upcoming earnings release of Sprouts Farmers will be of great interest to investors. The company's earnings report is expected on April 30, 2025. The company's earnings per share (EPS) are projected to be $1.53, reflecting a 36.61% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $2.19 billion, indicating a 16.28% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $4.66 per share and a revenue of $8.64 billion, demonstrating changes of +24.27% and +11.88%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Sprouts Farmers. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Sprouts Farmers boasts a Zacks Rank of #1 (Strong Buy).
From a valuation perspective, Sprouts Farmers is currently exchanging hands at a Forward P/E ratio of 35.37. This represents a premium compared to its industry's average Forward P/E of 17.55.
It is also worth noting that SFM currently has a PEG ratio of 2.3. 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. The Food - Natural Foods Products was holding an average PEG ratio of 1.61 at yesterday's closing price.
The Food - Natural Foods Products industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 46, this industry ranks in the top 19% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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