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Bull of the Day: Sprouts Farmers Market (SFM)

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Sprouts Farmers Market (SFM - Free Report) offers a unique grocery experience featuring an open layout with fresh produce at the heart of the store. Headquartered in Phoenix, SFM operates more than 410 stores nationwide in 23 states.

Analysts have taken a favorable stance concerning the company’s earnings outlook, landing the stock into the highly-coveted Zacks Rank #1 (Strong Buy).

Zacks Investment Research
Image Source: Zacks Investment Research

In addition to a positive earnings outlook, the company is also part of a Zacks industry that currently ranks in the top 10%. Let’s take a closer look at the company.

Sprouts Farmers Market

SFM shares have been strong thanks to robust quarterly results, with the company exceeding both consensus EPS and sales expectations in each of its last ten quarters. Up 140% over the last year, the stock has crushed the S&P 500.

Continued sales growth has pleased investors, with the company posting double-digit percentage YoY sales growth rates in each of its last three periods. Sales of $2.0 billion throughout its latest period grew an impressive 17% from the year-ago mark, reflective of a strong demand picture overall. 

Below is a chart illustrating the company’s sales on a quarterly basis.

Zacks Investment Research
Image Source: Zacks Investment Research

In addition, its existing locations continue to see an uptick in demand, with SFM posting YoY comparable store sales growth of 11.5% in its latest print, up from 8.4% in the prior period. As shown below, the comparable store sales growth has regularly exceeded our expectations, with SFM posting seven consecutive beats on the metric.

Zacks Investment Research
Image Source: Zacks Investment Research

Jack Sinclair, CEO, on the latest set of results – “Our teams across the business delivered on our strategy and set us up for even greater success in the future. Our unique, attribute-driven offering resonates more than ever with our target customers. They trust Sprouts as a partner on their healthy living journey, and it shows in our results. I’m grateful to our team members for their hard work, and we are excited for 2025 and the years ahead.”

Bottom Line

Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.

The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.

Sprouts Farmers Market (SFM - Free Report) would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).


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