There is no question that the market has been rallying sharply off the lows. That doesn’t mean that you can jump out in this market and buy anything that moves. You really should make sure that the price movement can be sustained over the long run. What I mean by that is you should check the underlying earnings trend of the stock you are looking at. Stocks with strong earnings trends to the upside tend to outperform over time. Buying into stocks with weak trends just because they’re on the move can be a recipe for disaster.
Today’s Bear of the Day is a stock with an earnings trend that has been a bit negative. I’m talking about Zacks Rank #5 (Strong Sell) Sprouts Farmers Market (SFM - Free Report) . Sprouts Farmers Market, Inc., a healthy grocery store, provides fresh, natural, and organic food products in the United States. Its stores offer fresh produce, meat and seafood, deli and baked goods, packaged groceries, vitamins and supplements, bulk foods, dairy and dairy alternatives, frozen foods, beer and wine, and natural body care and household items. As of October 25, 2018, it operated 315 stores in 19 states.
The reason for the unfavorable Zacks Rank lies in the recent negative revisions to earnings estimates. Over the last ninety days, nine analysts have cut their earnings estimates for next year. The bearish moves have cut the Zacks Consensus Estimates from $1.41 to $1.32 for next year.
The Food – Natural Foods Products industry currently ranks in the Bottom 16% of our Zacks Industry Rank. While Sprouts isn’t exactly lighting up the board with its Zacks Rank, Vitamin Shoppe is now a Zacks Rank #1 (Strong Buy). Other stocks in the same industry with lesser Zacks Ranks include Zacks Rank #3 (Hold) stocks Farmer Brothers (FARM - Free Report) and Performance Food Group (PFGC - Free Report) .
Today's Stocks from Zacks' Hottest StrategiesIt's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
There is no question that the market has been rallying sharply off the lows. That doesn’t mean that you can jump out in this market and buy anything that moves. You really should make sure that the price movement can be sustained over the long run. What I mean by that is you should check the underlying earnings trend of the stock you are looking at. Stocks with strong earnings trends to the upside tend to outperform over time. Buying into stocks with weak trends just because they’re on the move can be a recipe for disaster.
Today’s Bear of the Day is a stock with an earnings trend that has been a bit negative. I’m talking about Zacks Rank #5 (Strong Sell) Sprouts Farmers Market (SFM - Free Report) . Sprouts Farmers Market, Inc., a healthy grocery store, provides fresh, natural, and organic food products in the United States. Its stores offer fresh produce, meat and seafood, deli and baked goods, packaged groceries, vitamins and supplements, bulk foods, dairy and dairy alternatives, frozen foods, beer and wine, and natural body care and household items. As of October 25, 2018, it operated 315 stores in 19 states.
The reason for the unfavorable Zacks Rank lies in the recent negative revisions to earnings estimates. Over the last ninety days, nine analysts have cut their earnings estimates for next year. The bearish moves have cut the Zacks Consensus Estimates from $1.41 to $1.32 for next year.
The Food – Natural Foods Products industry currently ranks in the Bottom 16% of our Zacks Industry Rank. While Sprouts isn’t exactly lighting up the board with its Zacks Rank, Vitamin Shoppe is now a Zacks Rank #1 (Strong Buy). Other stocks in the same industry with lesser Zacks Ranks include Zacks Rank #3 (Hold) stocks Farmer Brothers (FARM - Free Report) and Performance Food Group (PFGC - Free Report) .
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on FARM - FREE
Get the latest research report on SFM - FREE
Get the latest research report on PFGC - FREE