Back to top

Image: Bigstock

Sprouts Farmers (SFM) Stock Slides as Market Rises: Facts to Know Before You Trade

Read MoreHide Full Article

Sprouts Farmers (SFM - Free Report) closed the latest trading day at $161.88, indicating a -2.33% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 0.55%. Meanwhile, the Dow experienced a rise of 0.25%, and the technology-dominated Nasdaq saw an increase of 0.63%.

Prior to today's trading, shares of the natural and organic food retailer had gained 5.57% over the past month. This has outpaced the Retail-Wholesale sector's gain of 5.29% and lagged the S&P 500's gain of 6.29% in that time.

Investors will be eagerly watching for the performance of Sprouts Farmers in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.23, showcasing a 30.85% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $2.17 billion, indicating a 14.51% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.08 per share and revenue of $8.77 billion. These totals would mark changes of +35.47% and +13.65%, respectively, from last year.

Investors should also pay attention to any latest changes in analyst estimates for Sprouts Farmers. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.04% higher within the past month. As of now, Sprouts Farmers holds a Zacks Rank of #1 (Strong Buy).

Digging into valuation, Sprouts Farmers currently has a Forward P/E ratio of 32.64. For comparison, its industry has an average Forward P/E of 20.24, which means Sprouts Farmers is trading at a premium to the group.

One should further note that SFM currently holds a PEG ratio of 1.92. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Food - Natural Foods Products industry had an average PEG ratio of 1.69 as trading concluded yesterday.

The Food - Natural Foods Products industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 165, placing it within the bottom 33% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Sprouts Farmers Market, Inc. (SFM) - free report >>

Published in