Smart & Final Stores (SFS) Stock Sinks As Market Gains: What You Should Know
Smart & Final Stores (SFS) closed at $6.01 in the latest trading session, marking a -1.8% move from the prior day. This change lagged the S&P 500's daily gain of 0.22%. At the same time, the Dow added 0.7%, and the tech-heavy Nasdaq gained 0.08%.
Heading into today, shares of the warehouse store operator had gained 19.3% over the past month, outpacing the Consumer Staples sector's gain of 3.72% and the S&P 500's gain of 9.27% in that time.
Wall Street will be looking for positivity from SFS as it approaches its nex t earnings report date. This is expected to be March 13, 2019. On that day, SFS is projected to report earnings of $0.12 per share, which would represent a year-over-year decline of 20%. Meanwhile, our latest consensus estimate is calling for revenue of $1.09 billion, up 2.18% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for SFS. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. SFS is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, SFS is holding a Forward P/E ratio of 13.6. This represents a discount compared to its industry's average Forward P/E of 16.75.
Also, we should mention that SFS has a PEG ratio of 4.53. 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. The Food - Miscellaneous industry currently had an average PEG ratio of 2.01 as of yesterday's close.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 187, which puts it in the bottom 27% 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.
To follow SFS in the coming trading sessions, be sure to utilize Zacks.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.