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Sprouts Farmers (SFM) Stays Ahead of Industry: Here's Why
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Sprouts Farmers Market, Inc. (SFM - Free Report) , one of the recognized names in the grocery space, has exhibited an impressive run on the bourses in the past year on product innovation, emphasis on e-commerce, expansion of private label offerings and targeted marketing with great pricing. Shares of this Zacks Rank #1 (Strong Buy) company have risen 93.6% in the past year compared with the industry’s growth of 56.3%.
An uptrend in the Zacks Consensus Estimate echoes the same sentiment. The consensus estimate for earnings per share in 2024 and 2025 has increased 4.6% and 5.6% to $2.95 and $3.19, respectively, over the past 30 days.
Image Source: Zacks Investment Research
Let’s Dig in Deeper
Sprouts Farmers is strategically positioning itself as a leading specialty food retailer, focusing on catering to a niche market with a unique mix of differentiated, healthy, fresh and high-quality products. To enhance customer satisfaction, SFM has committed to improving service scores and product availability, notably introducing more than 400 new Sprouts Farmers brand products that accounted for 21% of total sales in the fourth quarter.
During the fourth quarter of 2023, Sprouts Farmers increased its retail footprint by opening six new locations. The company is focusing on broadening its network of stores, with a particular emphasis on launching smaller-format outlets that enhance customer access to its distinct range of products. It has set its sights on inaugurating 35 additional stores in 2024, predominantly in the second half of the year, underscoring its strategy to leverage the potential of these compact store designs.
Through strategic partnerships with Instacart and DoorDash, the company has accessed new markets, significantly boosting its e-commerce sector. SFM's e-commerce segment saw a 17% increase, with sales making up 12.4% of total sales for the quarter. This highlights a successful omnichannel strategy supported by partnerships with major delivery platforms.
After delivering a solid performance in the last quarter, Sprouts Farmers has set forth an optimistic forecast for the year ahead. The company projects a 5.5-7.5% increase in total sales. It anticipates comparable store sales to grow 1.5-3.5% in 2024.
Adjusted earnings before interest and taxes are expected to be between $397 million and $412 million. Sprouts Farmers envisions its full-year adjusted earnings per share in the range of $2.85-$2.95, marking a progression from $2.84 in 2023.
To wrap up, the company's strategic initiatives highlight its strong financial standing, commitment to specialty retailing and operational excellence. These aspects position the company well for continued success and competitiveness in the grocery retail market.
Other Promising Stocks
Some other top-ranked stocks from the same industry are Grocery Outlet Holding Corp. (GO - Free Report) , Abercrombie & Fitch Co. (ANF - Free Report) and Crocs, Inc. (CROX - Free Report) .
Grocery Outlet is a high-growth, extreme value retailer of quality, name-brand consumables and fresh products. It carries a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Grocery Outlet’s current financial-year earnings and sales indicates growth of 10.3% and 9.6%, respectively, from the year-ago reported figures. GO has a trailing four-quarter average earnings surprise of 17%.
Abercrombie & Fitch is a specialty retailer of premium, high-quality casual apparel. It currently carries a Zacks Rank #2. ANF has a trailing four-quarter average earnings surprise of 715.6%.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current fiscal-year earnings and sales indicates growth of 16.4% and 5.7%, respectively, from the year-ago reported figures.
Crocs is one of the leading footwear brands, with a focus on comfort and style. CROX carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Crocs’ current financial-year sales and EPS implies growth of 3.9% and 2.9%, respectively, from the year-ago reported figures. CROX has a trailing four-quarter earnings surprise of 14.2%, on average.
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Sprouts Farmers (SFM) Stays Ahead of Industry: Here's Why
Sprouts Farmers Market, Inc. (SFM - Free Report) , one of the recognized names in the grocery space, has exhibited an impressive run on the bourses in the past year on product innovation, emphasis on e-commerce, expansion of private label offerings and targeted marketing with great pricing. Shares of this Zacks Rank #1 (Strong Buy) company have risen 93.6% in the past year compared with the industry’s growth of 56.3%.
An uptrend in the Zacks Consensus Estimate echoes the same sentiment. The consensus estimate for earnings per share in 2024 and 2025 has increased 4.6% and 5.6% to $2.95 and $3.19, respectively, over the past 30 days.
Image Source: Zacks Investment Research
Let’s Dig in Deeper
Sprouts Farmers is strategically positioning itself as a leading specialty food retailer, focusing on catering to a niche market with a unique mix of differentiated, healthy, fresh and high-quality products. To enhance customer satisfaction, SFM has committed to improving service scores and product availability, notably introducing more than 400 new Sprouts Farmers brand products that accounted for 21% of total sales in the fourth quarter.
During the fourth quarter of 2023, Sprouts Farmers increased its retail footprint by opening six new locations. The company is focusing on broadening its network of stores, with a particular emphasis on launching smaller-format outlets that enhance customer access to its distinct range of products. It has set its sights on inaugurating 35 additional stores in 2024, predominantly in the second half of the year, underscoring its strategy to leverage the potential of these compact store designs.
Through strategic partnerships with Instacart and DoorDash, the company has accessed new markets, significantly boosting its e-commerce sector. SFM's e-commerce segment saw a 17% increase, with sales making up 12.4% of total sales for the quarter. This highlights a successful omnichannel strategy supported by partnerships with major delivery platforms.
After delivering a solid performance in the last quarter, Sprouts Farmers has set forth an optimistic forecast for the year ahead. The company projects a 5.5-7.5% increase in total sales. It anticipates comparable store sales to grow 1.5-3.5% in 2024.
Adjusted earnings before interest and taxes are expected to be between $397 million and $412 million. Sprouts Farmers envisions its full-year adjusted earnings per share in the range of $2.85-$2.95, marking a progression from $2.84 in 2023.
To wrap up, the company's strategic initiatives highlight its strong financial standing, commitment to specialty retailing and operational excellence. These aspects position the company well for continued success and competitiveness in the grocery retail market.
Other Promising Stocks
Some other top-ranked stocks from the same industry are Grocery Outlet Holding Corp. (GO - Free Report) , Abercrombie & Fitch Co. (ANF - Free Report) and Crocs, Inc. (CROX - Free Report) .
Grocery Outlet is a high-growth, extreme value retailer of quality, name-brand consumables and fresh products. It carries a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Grocery Outlet’s current financial-year earnings and sales indicates growth of 10.3% and 9.6%, respectively, from the year-ago reported figures. GO has a trailing four-quarter average earnings surprise of 17%.
Abercrombie & Fitch is a specialty retailer of premium, high-quality casual apparel. It currently carries a Zacks Rank #2. ANF has a trailing four-quarter average earnings surprise of 715.6%.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current fiscal-year earnings and sales indicates growth of 16.4% and 5.7%, respectively, from the year-ago reported figures.
Crocs is one of the leading footwear brands, with a focus on comfort and style. CROX carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Crocs’ current financial-year sales and EPS implies growth of 3.9% and 2.9%, respectively, from the year-ago reported figures. CROX has a trailing four-quarter earnings surprise of 14.2%, on average.