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Sprouts Farmers (SFM) closed the latest trading day at $140.20, indicating a +0.91% change from the previous session's end. The stock exceeded the S&P 500, which registered a gain of 0.16% for the day. Meanwhile, the Dow experienced a rise of 0.25%, and the technology-dominated Nasdaq saw a decrease of 0.06%.
The natural and organic food retailer's stock has dropped by 5.85% in the past month, falling short of the Retail-Wholesale sector's loss of 4.61% and the S&P 500's loss of 2.7%.
Analysts and investors alike will be keeping a close eye on the performance of Sprouts Farmers in its upcoming earnings disclosure. In that report, analysts expect Sprouts Farmers to post earnings of $0.71 per share. This would mark year-over-year growth of 44.9%. Simultaneously, our latest consensus estimate expects the revenue to be $1.95 billion, showing a 14.84% escalation compared to the year-ago quarter.
Any recent changes to analyst estimates for Sprouts Farmers should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Sprouts Farmers presently features a Zacks Rank of #2 (Buy).
In terms of valuation, Sprouts Farmers is currently trading at a Forward P/E ratio of 33.3. Its industry sports an average Forward P/E of 18.1, so one might conclude that Sprouts Farmers is trading at a premium comparatively.
We can also see that SFM currently has a PEG ratio of 1.85. 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. By the end of yesterday's trading, the Food - Natural Foods Products industry had an average PEG ratio of 1.39.
The Food - Natural Foods Products industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 19, putting it in the top 8% of all 250+ industries.