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Sprouts Farmers (SFM) Gains Market Share on Operational Efforts
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Sprouts Farmers Market, Inc. (SFM - Free Report) , a recognized name in the grocery space, exhibited a decent run on the bourse in the past year. Due to its operational initiatives — strengthening omnichannel solutions, expanding the customer reach and a focus on private-label offerings — the stock has outpaced the Zacks Food-Natural Foods Products industry. In the said period, shares of this Zacks Rank #2 (Buy) company have rallied about 20.3%. Meanwhile, the industry remained flat over the same period.
Let’s Delve Deeper
To expand its customer base, Sprouts Farmers has been taking several initiatives focused on product innovation, customer experience and targeted marketing with everyday great pricing and technology. It is steadily expanding its presence in the natural organic space, given the huge demand in the segment. It has been reducing operational complexity, optimizing production, improving the in-stock position and updating to smaller format stores.
Apart from these, the company 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.
Sprouts Farmers is focused on creating a robust omnichannel experience for customers. The company has been providing hassle-free shopping through the Sprouts.com website and mobile app as well as creating a supply chain that provides the freshest produce while updating store prototypes.
The company’s partnership with Instacart enables it to better respond to customer demand and provide same-day delivery. In the second quarter of 2022, e-commerce sales grew 15% and represented approximately 11.1% of total sales.
Image Source: Zacks Investment Research
Wrapping Up
Sprouts Farmers has been strengthening omnichannel solutions, expanding its customer reach and focusing on private-label offerings to gain market share. Management anticipates net sales growth of 4-5% and comparable store sales growth of 1-2% in 2022. It projects earnings in the band of $2.18-$2.26 per share, which suggests an increase from the earnings of $2.10 per share reported in 2021.
3 More Stocks Looking Red Hot
Here we have highlighted three other top-ranked stocks, namely BJ's Wholesale Club (BJ - Free Report) , Kroger (KR - Free Report) and Performance Food Group (PFGC - Free Report) .
BJ's Wholesale Club, which operates membership warehouse clubs, currently sports a Zacks Rank #1 (Strong Buy). BJ has an expected EPS growth rate of 9.3% for three to five years. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BJ's Wholesale Club’s current financial-year sales and EPS suggests growth of 15.1% and 10.5%, respectively, from the corresponding year-ago period’s levels. BJ has a trailing four-quarter earnings surprise of 16.5%, on average.
Kroger, a renowned grocery retailer, carries a Zacks Rank #2 at present. The company has an expected EPS growth rate of 11.7% for three to five years.
The Zacks Consensus Estimate for Kroger’s current financial-year sales and EPS suggests growth of 7.8% and 10.3%, respectively, from the year-ago reported number. KR has a trailing four-quarter earnings surprise of 15.7%, on average.
Performance Food Group, which markets and distributes food and food-related products in the United States, carries a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for Performance Food Group’s current financial-year sales and EPS suggests growth of 12.9% and 29.2%, respectively, from the corresponding year-ago period’s actuals. PFGC has a trailing four-quarter earnings surprise of 7.3%, on average.
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Sprouts Farmers (SFM) Gains Market Share on Operational Efforts
Sprouts Farmers Market, Inc. (SFM - Free Report) , a recognized name in the grocery space, exhibited a decent run on the bourse in the past year. Due to its operational initiatives — strengthening omnichannel solutions, expanding the customer reach and a focus on private-label offerings — the stock has outpaced the Zacks Food-Natural Foods Products industry. In the said period, shares of this Zacks Rank #2 (Buy) company have rallied about 20.3%. Meanwhile, the industry remained flat over the same period.
Let’s Delve Deeper
To expand its customer base, Sprouts Farmers has been taking several initiatives focused on product innovation, customer experience and targeted marketing with everyday great pricing and technology. It is steadily expanding its presence in the natural organic space, given the huge demand in the segment. It has been reducing operational complexity, optimizing production, improving the in-stock position and updating to smaller format stores.
Apart from these, the company 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.
Sprouts Farmers is focused on creating a robust omnichannel experience for customers. The company has been providing hassle-free shopping through the Sprouts.com website and mobile app as well as creating a supply chain that provides the freshest produce while updating store prototypes.
The company’s partnership with Instacart enables it to better respond to customer demand and provide same-day delivery. In the second quarter of 2022, e-commerce sales grew 15% and represented approximately 11.1% of total sales.
Image Source: Zacks Investment Research
Wrapping Up
Sprouts Farmers has been strengthening omnichannel solutions, expanding its customer reach and focusing on private-label offerings to gain market share. Management anticipates net sales growth of 4-5% and comparable store sales growth of 1-2% in 2022. It projects earnings in the band of $2.18-$2.26 per share, which suggests an increase from the earnings of $2.10 per share reported in 2021.
3 More Stocks Looking Red Hot
Here we have highlighted three other top-ranked stocks, namely BJ's Wholesale Club (BJ - Free Report) , Kroger (KR - Free Report) and Performance Food Group (PFGC - Free Report) .
BJ's Wholesale Club, which operates membership warehouse clubs, currently sports a Zacks Rank #1 (Strong Buy). BJ has an expected EPS growth rate of 9.3% for three to five years. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BJ's Wholesale Club’s current financial-year sales and EPS suggests growth of 15.1% and 10.5%, respectively, from the corresponding year-ago period’s levels. BJ has a trailing four-quarter earnings surprise of 16.5%, on average.
Kroger, a renowned grocery retailer, carries a Zacks Rank #2 at present. The company has an expected EPS growth rate of 11.7% for three to five years.
The Zacks Consensus Estimate for Kroger’s current financial-year sales and EPS suggests growth of 7.8% and 10.3%, respectively, from the year-ago reported number. KR has a trailing four-quarter earnings surprise of 15.7%, on average.
Performance Food Group, which markets and distributes food and food-related products in the United States, carries a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for Performance Food Group’s current financial-year sales and EPS suggests growth of 12.9% and 29.2%, respectively, from the corresponding year-ago period’s actuals. PFGC has a trailing four-quarter earnings surprise of 7.3%, on average.