Sprouts Farmers (SFM) closed at $165.97 in the latest trading session, marking a +2.54% move from the prior day. The stock's change was more than the S&P 500's daily loss of 0.22%. Elsewhere, the Dow saw an upswing of 0.08%, while the tech-heavy Nasdaq depreciated by 0.51%.
The stock of natural and organic food retailer has risen by 0.06% in the past month, leading the Retail-Wholesale sector's loss of 0.39% and undershooting the S&P 500's gain of 0.45%.
Analysts and investors alike will be keeping a close eye on the performance of Sprouts Farmers in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.23, signifying a 30.85% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.17 billion, up 14.51% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.08 per share and revenue of $8.77 billion, indicating changes of +35.47% and +13.65%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Sprouts Farmers should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. Sprouts Farmers currently has a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Sprouts Farmers is currently being traded at a Forward P/E ratio of 31.88. This valuation marks a premium compared to its industry average Forward P/E of 19.51.
It's also important to note that SFM currently trades at a PEG ratio of 1.88. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Food - Natural Foods Products industry was having an average PEG ratio of 1.64.
The Food - Natural Foods Products industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 178, which puts it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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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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