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Sprouts Farmers (SFM) Rises But Trails Market: What Investors Should Know
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Sprouts Farmers (SFM - Free Report) ended the recent trading session at $169.96, demonstrating a +0.31% swing from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.36%. Meanwhile, the Dow experienced a drop of 0.28%, and the technology-dominated Nasdaq saw an increase of 0.51%.
Prior to today's trading, shares of the natural and organic food retailer had gained 20.85% over the past month. This has outpaced the Retail-Wholesale sector's gain of 7.61% and the S&P 500's gain of 2.11% in that time.
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. The company is forecasted to report an EPS of $0.71, showcasing a 44.9% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $1.95 billion, indicating a 14.84% growth compared to the corresponding quarter of the prior year.
It is also important to note the recent changes to analyst estimates for Sprouts Farmers. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Sprouts Farmers is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Sprouts Farmers is currently exchanging hands at a Forward P/E ratio of 40.24. Its industry sports an average Forward P/E of 18.62, so one might conclude that Sprouts Farmers is trading at a premium comparatively.
It is also worth noting that SFM currently has a PEG ratio of 2.24. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Food - Natural Foods Products stocks are, on average, holding a PEG ratio of 1.6 based on yesterday's closing prices.
The Food - Natural Foods Products industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 52, finds itself in the top 21% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Sprouts Farmers (SFM) Rises But Trails Market: What Investors Should Know
Sprouts Farmers (SFM - Free Report) ended the recent trading session at $169.96, demonstrating a +0.31% swing from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.36%. Meanwhile, the Dow experienced a drop of 0.28%, and the technology-dominated Nasdaq saw an increase of 0.51%.
Prior to today's trading, shares of the natural and organic food retailer had gained 20.85% over the past month. This has outpaced the Retail-Wholesale sector's gain of 7.61% and the S&P 500's gain of 2.11% in that time.
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. The company is forecasted to report an EPS of $0.71, showcasing a 44.9% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $1.95 billion, indicating a 14.84% growth compared to the corresponding quarter of the prior year.
It is also important to note the recent changes to analyst estimates for Sprouts Farmers. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Sprouts Farmers is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Sprouts Farmers is currently exchanging hands at a Forward P/E ratio of 40.24. Its industry sports an average Forward P/E of 18.62, so one might conclude that Sprouts Farmers is trading at a premium comparatively.
It is also worth noting that SFM currently has a PEG ratio of 2.24. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Food - Natural Foods Products stocks are, on average, holding a PEG ratio of 1.6 based on yesterday's closing prices.
The Food - Natural Foods Products industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 52, finds itself in the top 21% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.