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SFM vs. SOVO: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Food - Natural Foods Products sector might want to consider either Sprouts Farmers (SFM - Free Report) or Sovos Brands, Inc. . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Sprouts Farmers has a Zacks Rank of #2 (Buy), while Sovos Brands, Inc. has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that SFM likely has seen a stronger improvement to its earnings outlook than SOVO has recently. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
SFM currently has a forward P/E ratio of 13.82, while SOVO has a forward P/E of 29.88. We also note that SFM has a PEG ratio of 1.47. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SOVO currently has a PEG ratio of 2.97.
Another notable valuation metric for SFM is its P/B ratio of 3.53. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, SOVO has a P/B of 3.82.
These metrics, and several others, help SFM earn a Value grade of A, while SOVO has been given a Value grade of D.
SFM sticks out from SOVO in both our Zacks Rank and Style Scores models, so value investors will likely feel that SFM is the better option right now.
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SFM vs. SOVO: Which Stock Is the Better Value Option?
Investors looking for stocks in the Food - Natural Foods Products sector might want to consider either Sprouts Farmers (SFM - Free Report) or Sovos Brands, Inc. . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Sprouts Farmers has a Zacks Rank of #2 (Buy), while Sovos Brands, Inc. has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that SFM likely has seen a stronger improvement to its earnings outlook than SOVO has recently. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
SFM currently has a forward P/E ratio of 13.82, while SOVO has a forward P/E of 29.88. We also note that SFM has a PEG ratio of 1.47. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SOVO currently has a PEG ratio of 2.97.
Another notable valuation metric for SFM is its P/B ratio of 3.53. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, SOVO has a P/B of 3.82.
These metrics, and several others, help SFM earn a Value grade of A, while SOVO has been given a Value grade of D.
SFM sticks out from SOVO in both our Zacks Rank and Style Scores models, so value investors will likely feel that SFM is the better option right now.