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Sprouts Farmers (SFM) Gains As Market Dips: What You Should Know
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In the latest trading session, Sprouts Farmers (SFM - Free Report) closed at $21.91, marking a +1.58% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.63%. At the same time, the Dow lost 0.55%, and the tech-heavy Nasdaq lost 0.1%.
Heading into today, shares of the natural and organic food retailer had gained 2.37% over the past month, lagging the Retail-Wholesale sector's gain of 8.65% and the S&P 500's gain of 5.91% in that time.
Wall Street will be looking for positivity from SFM as it approaches its next earnings report date. This is expected to be October 28, 2020. In that report, analysts expect SFM to post earnings of $0.35 per share. This would mark year-over-year growth of 59.09%. Our most recent consensus estimate is calling for quarterly revenue of $1.63 billion, up 13.4% from the year-ago period.
SFM's full-year Zacks Consensus Estimates are calling for earnings of $2.12 per share and revenue of $6.52 billion. These results would represent year-over-year changes of +69.6% and +15.77%, respectively.
Investors might also notice recent changes to analyst estimates for SFM. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. SFM is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, SFM is currently trading at a Forward P/E ratio of 10.18. For comparison, its industry has an average Forward P/E of 11.51, which means SFM is trading at a discount to the group.
Meanwhile, SFM's PEG ratio is currently 1.1. 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. The Food - Natural Foods Products was holding an average PEG ratio of 3.51 at yesterday's closing price.
The Food - Natural Foods Products industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 82, which puts it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Sprouts Farmers (SFM) Gains As Market Dips: What You Should Know
In the latest trading session, Sprouts Farmers (SFM - Free Report) closed at $21.91, marking a +1.58% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.63%. At the same time, the Dow lost 0.55%, and the tech-heavy Nasdaq lost 0.1%.
Heading into today, shares of the natural and organic food retailer had gained 2.37% over the past month, lagging the Retail-Wholesale sector's gain of 8.65% and the S&P 500's gain of 5.91% in that time.
Wall Street will be looking for positivity from SFM as it approaches its next earnings report date. This is expected to be October 28, 2020. In that report, analysts expect SFM to post earnings of $0.35 per share. This would mark year-over-year growth of 59.09%. Our most recent consensus estimate is calling for quarterly revenue of $1.63 billion, up 13.4% from the year-ago period.
SFM's full-year Zacks Consensus Estimates are calling for earnings of $2.12 per share and revenue of $6.52 billion. These results would represent year-over-year changes of +69.6% and +15.77%, respectively.
Investors might also notice recent changes to analyst estimates for SFM. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. SFM is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, SFM is currently trading at a Forward P/E ratio of 10.18. For comparison, its industry has an average Forward P/E of 11.51, which means SFM is trading at a discount to the group.
Meanwhile, SFM's PEG ratio is currently 1.1. 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. The Food - Natural Foods Products was holding an average PEG ratio of 3.51 at yesterday's closing price.
The Food - Natural Foods Products industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 82, which puts it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.