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For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Why This 1 Growth Stock Should Be On Your Watchlist
Growth investors build their portfolios around companies that are financially strong and have a bright future, and the Growth Style Score helps take projected and historical earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Sprouts Farmers (SFM)
Sprouts Farmers Market, Inc., which operates in a highly fragmented grocery store industry, has a unique model that features fresh produce, foods section, and a vitamin department focused on overall wellness. Moreover, the company has been diversifying its offerings to meet changing preferences of consumers, who are looking for more health and wellness products. These products are generally plant-based, gluten-free, keto-friendly, and grass-fed. The company has been focusing on natural and organic food, which is one of the fastest growing segments in the industry.
SFM is a Zacks Rank #1 (Strong Buy) stock, with a Growth Style Score of A and VGM Score of B. Earnings are expected to grow 29.6% year-over-year for the current fiscal year, with sales growth of 12.2%.
Seven analysts revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.31 to $3.68 per share. SFM boasts an average earnings surprise of 15.3%.
Looking at cash flow, Sprouts Farmers is expected to report cash flow growth of 10.4% this year; SFM has generated cash flow growth of 14.9% over the past three to five years.
SFM should be on investors' short lists because of its impressive growth fundamentals, a good Zacks Rank, and strong Growth and VGM Style Scores.
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Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report