Sprouts Farmers (SFM) closed at $21.09 in the latest trading session, marking a -1.17% move from the prior day. This change was narrower than the S&P 500's daily loss of 1.4%. At the same time, the Dow lost 1.34%, and the tech-heavy Nasdaq lost 1.57%.
Heading into today, shares of the natural and organic food retailer had lost 5.74% over the past month, lagging the Retail-Wholesale sector's gain of 0.67% and the S&P 500's loss of 0.46% in that time.
SFM will be looking to display strength as it nears its next earnings release. In that report, analysts expect SFM to post earnings of $0.35 per share. This would mark year-over-year growth of 59.09%. Our most recent consensus estimate is calling for quarterly revenue of $1.63 billion, up 13.4% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.12 per share and revenue of $6.52 billion. These totals would mark changes of +69.6% and +15.77%, respectively, from last year.
Any recent changes to analyst estimates for SFM should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. SFM currently has a Zacks Rank of #3 (Hold).
In terms of valuation, SFM is currently trading at a Forward P/E ratio of 10.07. For comparison, its industry has an average Forward P/E of 11.4, which means SFM is trading at a discount to the group.
It is also worth noting that SFM currently has a PEG ratio of 1.09. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Food - Natural Foods Products industry currently had an average PEG ratio of 3.48 as of yesterday's close.
The Food - Natural Foods Products industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 200, putting it in the bottom 21% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report
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