Sprouts Farmers (SFM) closed the most recent trading day at $25.92, moving +1.05% from the previous trading session. This change outpaced the S&P 500's 0.91% gain on the day. At the same time, the Dow added 0.85%, and the tech-heavy Nasdaq gained 0.59%.
Prior to today's trading, shares of the natural and organic food retailer had gained 8.89% over the past month. This has lagged the Retail-Wholesale sector's gain of 11.98% and outpaced the S&P 500's gain of 5.26% in that time.
SFM will be looking to display strength as it nears its next earnings release, which is expected to be July 29, 2020. On that day, SFM is projected to report earnings of $0.38 per share, which would represent year-over-year growth of 26.67%. Meanwhile, our latest consensus estimate is calling for revenue of $1.59 billion, up 12.33% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.69 per share and revenue of $6.36 billion, which would represent changes of +35.2% and +12.94%, respectively, from the prior year.
Any recent changes to analyst estimates for SFM should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.93% higher. SFM is currently a Zacks Rank #1 (Strong Buy).
Valuation is also important, so investors should note that SFM has a Forward P/E ratio of 15.19 right now. This represents a no noticeable deviation compared to its industry's average Forward P/E of 15.19.
Investors should also note that SFM has a PEG ratio of 1.64 right now. 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 4.06 based on yesterday's closing prices.
The Food - Natural Foods Products industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 16, which puts it in the top 7% 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Sprouts Farmers Market, Inc. (SFM): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.