Yahoo Finance Sprouts Farmers (SFM) Surpasses Market Returns: Some Facts Worth Knowing
Sprouts Farmers (SFM) closed the most recent trading day at $66.98, moving +1.64% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 1.02%. Elsewhere, the Dow gained 0.4%, while the tech-heavy Nasdaq added 2.03%.
Heading into today, shares of the natural and organic food retailer had gained 2.2% over the past month, outpacing the Retail-Wholesale sector's loss of 3.3% and the S&P 500's loss of 3.15% in that time.
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 May 1, 2024. The company's earnings per share (EPS) are projected to be $1, reflecting a 2.04% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.84 billion, indicating a 6.12% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.95 per share and revenue of $7.3 billion, indicating changes of +3.87% and +6.73%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Sprouts Farmers. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Sprouts Farmers holds a Zacks Rank of #2 (Buy).
From a valuation perspective, Sprouts Farmers is currently exchanging hands at a Forward P/E ratio of 22.35. This valuation marks a premium compared to its industry's average Forward P/E of 15.38.
One should further note that SFM currently holds a PEG ratio of 2.4. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Food - Natural Foods Products industry was having an average PEG ratio of 1.69.
The Food - Natural Foods Products industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 30, placing it within the top 12% of over 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report
