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Is Sprouts Farmers (SFM) a Great Value Stock Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Sprouts Farmers (SFM - Free Report) is a stock many investors are watching right now. SFM is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 11.05 right now. For comparison, its industry sports an average P/E of 15.21. SFM's Forward P/E has been as high as 17.92 and as low as 10.28, with a median of 14.20, all within the past year.
SFM is also sporting a PEG ratio of 1.20. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SFM's industry has an average PEG of 1.67 right now. Over the past 52 weeks, SFM's PEG has been as high as 4.78 and as low as 1.12, with a median of 2.08.
Finally, we should also recognize that SFM has a P/CF ratio of 5.06. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.44. Over the past year, SFM's P/CF has been as high as 7.93 and as low as 4.44, with a median of 6.09.
These are just a handful of the figures considered in Sprouts Farmers's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SFM is an impressive value stock right now.
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Is Sprouts Farmers (SFM) a Great Value Stock Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Sprouts Farmers (SFM - Free Report) is a stock many investors are watching right now. SFM is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 11.05 right now. For comparison, its industry sports an average P/E of 15.21. SFM's Forward P/E has been as high as 17.92 and as low as 10.28, with a median of 14.20, all within the past year.
SFM is also sporting a PEG ratio of 1.20. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SFM's industry has an average PEG of 1.67 right now. Over the past 52 weeks, SFM's PEG has been as high as 4.78 and as low as 1.12, with a median of 2.08.
Finally, we should also recognize that SFM has a P/CF ratio of 5.06. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.44. Over the past year, SFM's P/CF has been as high as 7.93 and as low as 4.44, with a median of 6.09.
These are just a handful of the figures considered in Sprouts Farmers's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SFM is an impressive value stock right now.