In the latest close session, Sprouts Farmers (SFM) was down 1.36% at $159.90. This change lagged the S&P 500's 0.48% gain on the day. Meanwhile, the Dow experienced a drop of 0.02%, and the technology-dominated Nasdaq saw an increase of 0.94%.
Shares of the natural and organic food retailer witnessed a loss of 7.48% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 3.33%, and the S&P 500's gain of 5.13%.
Analysts and investors alike will be keeping a close eye on the performance of Sprouts Farmers in its upcoming earnings disclosure. The company's earnings report is set to go public on July 30, 2025. In that report, analysts expect Sprouts Farmers to post earnings of $1.22 per share. This would mark year-over-year growth of 29.79%. Meanwhile, our latest consensus estimate is calling for revenue of $2.16 billion, up 14.34% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.08 per share and a revenue of $8.77 billion, indicating changes of +35.47% and +13.6%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Sprouts Farmers. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.04% increase. Currently, Sprouts Farmers is carrying a Zacks Rank of #2 (Buy).
From a valuation perspective, Sprouts Farmers is currently exchanging hands at a Forward P/E ratio of 31.91. This valuation marks a premium compared to its industry average Forward P/E of 17.34.
Meanwhile, SFM's PEG ratio is currently 2.02. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Food - Natural Foods Products stocks are, on average, holding a PEG ratio of 1.63 based on yesterday's closing prices.
The Food - Natural Foods Products industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 176, putting it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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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