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Here's Why Sprouts Farmers (SFM) Has Emerged as a Solid Pick
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Sprouts Farmers Market (SFM - Free Report) has crafted a reputation for itself within the grocery industry by consistently prioritizing key areas that resonate with both consumers and investors. The company's unwavering commitment to product innovation, supply-chain optimization, store expansion and customer-centric strategies has positioned it as a formidable player in the market. Markedly, this Zacks Rank #2 (Buy) stock has emerged as a solid pick.
Shares of Sprouts Farmers have outpaced the Zacks Food-Natural Foods Products industry in the past six months. In the said period, the stock has rallied 27.6%, while the industry has risen 20.2%.
Furthermore, a positive sentiment is prevailing in the market, as indicated by the upward revision in the Zacks Consensus Estimate for earnings per share. Over the past 30 days, analysts have increased the Zacks Consensus Estimate for the current fiscal by 2.2%, now standing at $2.74 per share, while the estimate for the next fiscal has risen by 1.5% to $2.79 per share. These figures reflect year-over-year growth expectations of 14.6% and 1.8%, respectively, showcasing the company's potential and solid outlook.
Driving Growth Through Customer-Centricity
Sprouts Farmers’ approach centers around enriching the customer experience, ensuring that every strategy is tailored to meet customer needs. Initiatives focusing on product innovation, superior customer experience and targeted marketing have helped expand the customer base. By leveraging everyday great pricing and technology, the company ensures competitive offerings that resonate well with its target audience.
Recognizing the immense demand for natural and organic products, Sprouts Farmers is expanding its presence in this segment. Also, the company has been reducing operational complexity, optimizing production, improving the in-stock position and updating to smaller-format stores.
Image Source: Zacks Investment Research
Private-Label Emphasis and Omnichannel Excellence
Sprouts Farmers is trying to expand private-label offerings in departments under the Sprouts Market Corner Deli and The Butcher Shop at Sprouts. Product innovation continues to drive sales of private-label items. This emphasis on private-label items not only sets Sprouts Farmers apart from competitors but also fosters customer loyalty. Sprouts brand sales grew 12% and represented 20% of total sales in the second quarter of 2023.
The company’s commitment to a seamless omnichannel experience is yet another feather in its cap. Through user-friendly platforms like Sprouts.com and a dedicated mobile app, Sprouts Farmers has established a hassle-free shopping experience. Furthermore, strategic partnerships with industry giants like Instacart and DoorDash have facilitated entry into new markets, enhancing e-commerce growth. The company’s e-commerce sales grew 16% during the quarter, representing 12.1% of total sales.
Again, Sprouts Farmers aims to steadily expand its store footprint. By targeting an annual unit growth rate of 10%, the company is poised to increase its market share. With plans to open 30 new stores in 2023, Sprouts Farmers is demonstrating its unwavering commitment to solidify its competitive edge.
A Promising Outlook
Sprouts Farmers, being laser-focused, has been redefining strategies and upgrading capabilities to stay ahead of the curve. The company has set optimistic financial projections for the future, reflecting its confidence in its strategic initiatives.
For 2023, Sprouts Farmers expects net sales growth of 5-6% and comparable store sales growth of 2-3%. It now foresees full-year adjusted earnings in the band of $2.68-$2.76 per share, up from the $2.39 reported in 2022.
3 More Stocks Hogging in the Limelight
Here we have highlighted some other top-ranked stocks, namely Grocery Outlet (GO - Free Report) , The TJX Companies (TJX - Free Report) and Kroger (KR - Free Report) .
Grocery Outlet, the extreme value retailer of quality, name-brand consumables and fresh products, currently carries a Zacks Rank #2. The expected EPS growth rate for three to five years is 12.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Grocery Outlet’s current financial-year sales and earnings suggests growth of 11.2% and 2.9%, respectively, from the year-ago reported numbers. GO has a trailing four-quarter earnings surprise of 14.3%, on average.
The TJX Companies, the leading off-price apparel and home fashion retailer, currently carries a Zacks Rank #2. The expected EPS growth rate for three to five years is 11.1%.
The Zacks Consensus Estimate for The TJX Companies’ current financial-year sales and earnings suggests growth of 7.4% and 18.7%, respectively, from the year-ago reported numbers. TJX has a trailing four-quarter earnings surprise of 6.6%, on average.
Kroger, which operates as a supermarket operator, currently carries a Zacks Rank #2. The expected EPS growth rate for three to five years is 5.8%.
The Zacks Consensus Estimate for Kroger’s current financial-year revenues and EPS suggests growth of 2.2% and 6.9%, respectively, from the year-ago reported figure. Kroger has a trailing four-quarter earnings surprise of 7.8%, on average.
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Here's Why Sprouts Farmers (SFM) Has Emerged as a Solid Pick
Sprouts Farmers Market (SFM - Free Report) has crafted a reputation for itself within the grocery industry by consistently prioritizing key areas that resonate with both consumers and investors. The company's unwavering commitment to product innovation, supply-chain optimization, store expansion and customer-centric strategies has positioned it as a formidable player in the market. Markedly, this Zacks Rank #2 (Buy) stock has emerged as a solid pick.
Shares of Sprouts Farmers have outpaced the Zacks Food-Natural Foods Products industry in the past six months. In the said period, the stock has rallied 27.6%, while the industry has risen 20.2%.
Furthermore, a positive sentiment is prevailing in the market, as indicated by the upward revision in the Zacks Consensus Estimate for earnings per share. Over the past 30 days, analysts have increased the Zacks Consensus Estimate for the current fiscal by 2.2%, now standing at $2.74 per share, while the estimate for the next fiscal has risen by 1.5% to $2.79 per share. These figures reflect year-over-year growth expectations of 14.6% and 1.8%, respectively, showcasing the company's potential and solid outlook.
Driving Growth Through Customer-Centricity
Sprouts Farmers’ approach centers around enriching the customer experience, ensuring that every strategy is tailored to meet customer needs. Initiatives focusing on product innovation, superior customer experience and targeted marketing have helped expand the customer base. By leveraging everyday great pricing and technology, the company ensures competitive offerings that resonate well with its target audience.
Recognizing the immense demand for natural and organic products, Sprouts Farmers is expanding its presence in this segment. Also, the company has been reducing operational complexity, optimizing production, improving the in-stock position and updating to smaller-format stores.
Image Source: Zacks Investment Research
Private-Label Emphasis and Omnichannel Excellence
Sprouts Farmers is trying to expand private-label offerings in departments under the Sprouts Market Corner Deli and The Butcher Shop at Sprouts. Product innovation continues to drive sales of private-label items. This emphasis on private-label items not only sets Sprouts Farmers apart from competitors but also fosters customer loyalty. Sprouts brand sales grew 12% and represented 20% of total sales in the second quarter of 2023.
The company’s commitment to a seamless omnichannel experience is yet another feather in its cap. Through user-friendly platforms like Sprouts.com and a dedicated mobile app, Sprouts Farmers has established a hassle-free shopping experience. Furthermore, strategic partnerships with industry giants like Instacart and DoorDash have facilitated entry into new markets, enhancing e-commerce growth. The company’s e-commerce sales grew 16% during the quarter, representing 12.1% of total sales.
Again, Sprouts Farmers aims to steadily expand its store footprint. By targeting an annual unit growth rate of 10%, the company is poised to increase its market share. With plans to open 30 new stores in 2023, Sprouts Farmers is demonstrating its unwavering commitment to solidify its competitive edge.
A Promising Outlook
Sprouts Farmers, being laser-focused, has been redefining strategies and upgrading capabilities to stay ahead of the curve. The company has set optimistic financial projections for the future, reflecting its confidence in its strategic initiatives.
For 2023, Sprouts Farmers expects net sales growth of 5-6% and comparable store sales growth of 2-3%. It now foresees full-year adjusted earnings in the band of $2.68-$2.76 per share, up from the $2.39 reported in 2022.
3 More Stocks Hogging in the Limelight
Here we have highlighted some other top-ranked stocks, namely Grocery Outlet (GO - Free Report) , The TJX Companies (TJX - Free Report) and Kroger (KR - Free Report) .
Grocery Outlet, the extreme value retailer of quality, name-brand consumables and fresh products, currently carries a Zacks Rank #2. The expected EPS growth rate for three to five years is 12.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Grocery Outlet’s current financial-year sales and earnings suggests growth of 11.2% and 2.9%, respectively, from the year-ago reported numbers. GO has a trailing four-quarter earnings surprise of 14.3%, on average.
The TJX Companies, the leading off-price apparel and home fashion retailer, currently carries a Zacks Rank #2. The expected EPS growth rate for three to five years is 11.1%.
The Zacks Consensus Estimate for The TJX Companies’ current financial-year sales and earnings suggests growth of 7.4% and 18.7%, respectively, from the year-ago reported numbers. TJX has a trailing four-quarter earnings surprise of 6.6%, on average.
Kroger, which operates as a supermarket operator, currently carries a Zacks Rank #2. The expected EPS growth rate for three to five years is 5.8%.
The Zacks Consensus Estimate for Kroger’s current financial-year revenues and EPS suggests growth of 2.2% and 6.9%, respectively, from the year-ago reported figure. Kroger has a trailing four-quarter earnings surprise of 7.8%, on average.