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Should Value Investors Buy Sprouts Farmers Market (SFM) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is Sprouts Farmers Market (SFM - Free Report) . SFM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 13.66. This compares to its industry's average Forward P/E of 13.92. Over the past 52 weeks, SFM's Forward P/E has been as high as 15.37 and as low as 10.38, with a median of 12.72.

Finally, our model also underscores that SFM has a P/CF ratio of 7.18. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 9.54. SFM's P/CF has been as high as 7.99 and as low as 5.28, with a median of 6.40, all within the past year.

If you're looking for another solid Food - Natural Foods Products value stock, take a look at SpartanNash (SPTN - Free Report) . SPTN is a # 2 (Buy) stock with a Value score of A.

SpartanNash sports a P/B ratio of 1.54 as well; this compares to its industry's price-to-book ratio of 2.26. In the past 52 weeks, SPTN's P/B has been as high as 1.66, as low as 1.11, with a median of 1.40.

These are just a handful of the figures considered in Sprouts Farmers Market and SpartanNash'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 and SPTN is an impressive value stock right now.


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