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Is Sprouts Farmers (SFM) Stock Undervalued Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Sprouts Farmers (SFM - Free Report) is a stock many investors are watching right now. SFM is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 11.28, which compares to its industry's average of 15.15. SFM's Forward P/E has been as high as 17.67 and as low as 10.28, with a median of 13.88, all within the past year.
We also note that SFM holds a PEG ratio of 1.22. 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. SFM's PEG compares to its industry's average PEG of 1.67. SFM's PEG has been as high as 4.78 and as low as 1.12, with a median of 1.78, all within the past year.
Finally, investors should note that SFM has a P/CF ratio of 5.09. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 8.44. Within the past 12 months, SFM's P/CF has been as high as 7.93 and as low as 4.44, with a median of 5.90.
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) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Sprouts Farmers (SFM - Free Report) is a stock many investors are watching right now. SFM is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 11.28, which compares to its industry's average of 15.15. SFM's Forward P/E has been as high as 17.67 and as low as 10.28, with a median of 13.88, all within the past year.
We also note that SFM holds a PEG ratio of 1.22. 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. SFM's PEG compares to its industry's average PEG of 1.67. SFM's PEG has been as high as 4.78 and as low as 1.12, with a median of 1.78, all within the past year.
Finally, investors should note that SFM has a P/CF ratio of 5.09. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 8.44. Within the past 12 months, SFM's P/CF has been as high as 7.93 and as low as 4.44, with a median of 5.90.
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.