Yahoo Finance Why This 1 Growth Stock Could Be a Great Addition to Your Portfolio
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why This 1 Growth Stock Should Be On Your Watchlist
For growth investors, a company's financial strength, overall health, and future outlook take precedence, so they'll want to zero in on the Growth Style Score. This Score examines things like projected and historical earnings, sales, and cash flow to find stocks that will generate sustainable growth over time.
Sprouts Farmers (SFM)
Sprouts Farmers Market, Inc., which operates in a highly fragmented grocery store industry, has a unique model that features fresh produce, foods section, and a vitamin department focused on overall wellness. Moreover, the company has been diversifying its offerings to meet changing preferences of consumers, who are looking for more health and wellness products. These products are generally plant-based, gluten-free, keto-friendly, and grass-fed. The company has been focusing on natural and organic food, which is one of the fastest growing segments in the industry.
SFM boasts a Growth Style Score of A and VGM Score of B, and holds a Zacks Rank #1 (Strong Buy) rating. Its bottom-line is projected to rise 9.9% year-over-year for 2024, while Wall Street anticipates its top line to improve by 8%.
Eight analysts revised their earnings estimate higher in the last 60 days for fiscal 2024, while the Zacks Consensus Estimate has increased $0.17 to $3.12 per share. SFM also boasts an average earnings surprise of 9.2%.
Looking at cash flow, Sprouts Farmers is expected to report cash flow growth of 10.4% this year; SFM has generated cash flow growth of 14.9% over the past three to five years.
Investors should take the time to consider SFM for their portfolios due to its solid Zacks Rank rating, notable growth metrics, and impressive Growth and VGM Style Scores.
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Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report
