Yahoo Finance Sprouts Farmers (SFM) Increases Yet Falls Behind Market: What Investors Need to Know
Sprouts Farmers (SFM) ended the recent trading session at $65.49, demonstrating a +0.28% swing from the preceding day's closing price. This change lagged the S&P 500's 1.2% gain on the day. Elsewhere, the Dow saw an upswing of 0.69%, while the tech-heavy Nasdaq appreciated by 1.59%.
The natural and organic food retailer's stock has climbed by 3.15% in the past month, exceeding the Retail-Wholesale sector's loss of 3.47% and the S&P 500's loss of 4.16%.
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 is predicted to post an EPS of $1, indicating a 2.04% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.84 billion, up 6.12% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.95 per share and revenue of $7.3 billion. These totals would mark changes of +3.87% and +6.73%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Sprouts Farmers. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Sprouts Farmers holds a Zacks Rank of #1 (Strong Buy).
In the context of valuation, Sprouts Farmers is at present trading with a Forward P/E ratio of 22.19. This indicates a premium in contrast to its industry's Forward P/E of 15.38.
It's also important to note that SFM currently trades at a PEG ratio of 2.38. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Food - Natural Foods Products industry stood at 1.68 at the close of the market yesterday.
The Food - Natural Foods Products industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 16, this industry ranks in the top 7% of all industries, numbering over 250.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report
