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Why the Market Dipped But Sprouts Farmers (SFM) Gained Today

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Sprouts Farmers (SFM - Free Report) closed the most recent trading day at $117.42, moving +1.4% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.18%. Meanwhile, the Dow lost 0.8%, and the Nasdaq, a tech-heavy index, added 0.27%.

Shares of the natural and organic food retailer witnessed a gain of 9.56% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 3.95% and the S&P 500's gain of 4.46%.

The investment community will be closely monitoring the performance of Sprouts Farmers in its forthcoming earnings report. The company is scheduled to release its earnings on October 30, 2024. The company's earnings per share (EPS) are projected to be $0.75, reflecting a 15.38% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.87 billion, indicating an 8.9% growth compared to the corresponding quarter of the prior year.

SFM's full-year Zacks Consensus Estimates are calling for earnings of $3.37 per share and revenue of $7.5 billion. These results would represent year-over-year changes of +18.66% and +9.63%, respectively.

Investors should also take note of any recent adjustments 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 company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Sprouts Farmers is carrying a Zacks Rank of #3 (Hold).

From a valuation perspective, Sprouts Farmers is currently exchanging hands at a Forward P/E ratio of 34.36. This expresses a premium compared to the average Forward P/E of 15.59 of its industry.

Investors should also note that SFM has a PEG ratio of 3.29 right now. 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 had an average PEG ratio of 2.06 as trading concluded yesterday.

The Food - Natural Foods Products industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 100, finds itself in the top 40% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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