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Sprouts Farmers (SFM) Stock Sinks As Market Gains: Here's Why

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Sprouts Farmers (SFM - Free Report) closed the most recent trading day at $105.31, moving -1.73% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.06% for the day. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, added 0.39%.

Prior to today's trading, shares of the natural and organic food retailer had lost 22.54% lagged the Retail-Wholesale sector's gain of 0.29% and the S&P 500's gain of 3.94%.

The investment community will be paying close attention to the earnings performance of Sprouts Farmers in its upcoming release. The company is slated to reveal its earnings on October 29, 2025. The company is expected to report EPS of $1.16, up 27.47% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $2.22 billion, indicating a 14.06% growth compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.28 per share and a revenue of $8.93 billion, representing changes of +40.8% and +15.66%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Sprouts Farmers. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Sprouts Farmers is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Sprouts Farmers has a Forward P/E ratio of 20.3 right now. This valuation marks a discount compared to its industry average Forward P/E of 20.41.

We can also see that SFM currently has a PEG ratio of 1.22. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Food - Natural Foods Products stocks are, on average, holding a PEG ratio of 1.19 based on yesterday's closing prices.

The Food - Natural Foods Products industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 195, placing it within the bottom 22% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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