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Sprouts Farmers (SFM) closed the latest trading day at $134.65, indicating a +1.27% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 1.26%. At the same time, the Dow added 0.8%, and the tech-heavy Nasdaq gained 1.77%.
The natural and organic food retailer's stock has dropped by 12.36% in the past month, falling short of the Retail-Wholesale sector's loss of 1.93% and the S&P 500's loss of 2.82%.
The upcoming earnings release of Sprouts Farmers will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.71, reflecting a 44.9% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.95 billion, up 14.84% from the year-ago period.
Investors should also take note of any recent adjustments to analyst estimates for Sprouts Farmers. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 remained steady. Sprouts Farmers is currently a Zacks Rank #2 (Buy).
In terms of valuation, Sprouts Farmers is presently being traded at a Forward P/E ratio of 31.58. This represents a premium compared to its industry's average Forward P/E of 17.74.
It's also important to note that SFM currently trades at a PEG ratio of 1.76. 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. The Food - Natural Foods Products industry currently had an average PEG ratio of 1.33 as of yesterday's close.
The Food - Natural Foods Products industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 47, placing it within the top 19% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.