Back to top

Image: Bigstock

Sprouts Farmers (SFM) Outperforms Broader Market: What You Need to Know

Read MoreHide Full Article

Sprouts Farmers (SFM - Free Report) closed the most recent trading day at $65.51, moving +1.22% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.58% for the day. Meanwhile, the Dow gained 0.69%, and the Nasdaq, a tech-heavy index, added 1.05%.

Prior to today's trading, shares of the natural and organic food retailer had lost 5.77% lagged the Retail-Wholesale sector's gain of 4.75% and the S&P 500's gain of 0.97%.

Analysts and investors alike will be keeping a close eye on the performance of Sprouts Farmers in its upcoming earnings disclosure. The company's earnings report is set to go public on October 28, 2026. The company is predicted to post an EPS of $1.22, indicating constancy compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $2.33 billion, reflecting a 5.86% rise from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.52 per share and a revenue of $9.48 billion, indicating changes of +3.95% and +7.64%, respectively, from the former year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Sprouts Farmers. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.49% lower. Right now, Sprouts Farmers possesses a Zacks Rank of #4 (Sell).

In terms of valuation, Sprouts Farmers is presently being traded at a Forward P/E ratio of 11.73. Its industry sports an average Forward P/E of 12.59, so one might conclude that Sprouts Farmers is trading at a discount comparatively.

Investors should also note that SFM has a PEG ratio of 1.64 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. SFM's industry had an average PEG ratio of 1.63 as of yesterday's close.

The Food - Natural Foods Products industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 207, positioning it in the bottom 16% of all 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

Published in