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Sprouts Farmers (SFM) Stock Slides as Market Rises: Facts to Know Before You Trade

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Sprouts Farmers (SFM - Free Report) closed at $146.25 in the latest trading session, marking a -0.51% move from the prior day. This change lagged the S&P 500's 0.61% gain on the day. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 1.28%.

Coming into today, shares of the natural and organic food retailer had gained 11.85% in the past month. In that same time, the Retail-Wholesale sector gained 2.32%, while the S&P 500 gained 2.08%.

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 February 20, 2025. It is anticipated that the company will report an EPS of $0.71, marking a 44.9% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.95 billion, up 14.84% from the prior-year quarter.

It's also important for investors to be aware of any recent modifications to analyst estimates for Sprouts Farmers. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Sprouts Farmers currently has a Zacks Rank of #3 (Hold).

Looking at valuation, Sprouts Farmers is presently trading at a Forward P/E ratio of 34.91. This valuation marks a premium compared to its industry's average Forward P/E of 18.81.

Meanwhile, SFM's PEG ratio is currently 1.94. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Food - Natural Foods Products stocks are, on average, holding a PEG ratio of 1.45 based on yesterday's closing prices.

The Food - Natural Foods Products industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 45, this industry ranks in the top 18% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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