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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
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
For growth investors, a company's financial strength, overall health, and future outlook take precedence, so they'll want to zero in on the Growth Style Score. This Score examines things like projected and historical earnings, sales, and cash flow to find stocks that will generate 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 sits at a Zacks Rank #2 (Buy), holds a Growth Style Score of A, and has a VGM Score of A. Earnings and sales are forecasted to increase 29.6% and 12.2% year-over-year, respectively.
Two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.09 to $3.68 per share for 2024. SFM boasts an average earnings surprise of 15.3%.
Sprouts Farmers is also cash rich. The company has generated cash flow growth of 14.9%, and is expected to report cash flow expansion of 10.4% in 2024.
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