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For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why This 1 Growth Stock Should Be On Your Watchlist
Different than value or momentum investors, growth-oriented investors are concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, they'll want to focus on the Growth Style Score, which analyzes characteristics like projected and historical earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
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 #2 (Buy) stock, with a Growth Style Score of B and VGM Score of B. Earnings are expected to grow 24.8% year-over-year for the current fiscal year, with sales growth of 11.9%.
Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.12 to $4.68 per share. SFM boasts an average earnings surprise of 15.1%.
On a historic basis, Sprouts Farmers has generated cash flow growth of 13%, and is expected to report cash flow expansion of 17.3% this year.
With solid fundamentals, a good Zacks Rank, and top-tier Growth and VGM Style Scores, SFM should be on investors' short lists.
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Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).