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Sprout Farmers (SFM) Marches Ahead of Industry: Here's Why
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Sprouts Farmers Market, Inc. (SFM - Free Report) has emerged as an investor favorite amid the current market volatility, thanks to the renewed tension between the United States and China, the fear stemming from the rise in number of coronavirus cases as the economy reopens and the alarming job scenario. Notably, this Phoenix, AZ-based company looks quite resilient owing to its business model and products it offers, which have been in demand amid the pandemic.
Shares of this provider of fresh, natural, and organic food products have advanced 13.2% in the past six months against the industry’s decline of 23.2%. Even the stock has fared better than the Retail – Wholesale sector that gained 12.8% and the S&P 500 index that fell 3.8% in the aforementioned period.
The stock got a boost following Sprouts Farmers’ first-quarter 2020 results, wherein both earnings and revenues not only improved year over year but also surpassed the Zacks Consensus Estimate for the third straight quarter. Further, the company sustained its positive comparable store sales trend. The company benefited from spike in demand during the latter part of the quarter as Americans stockpiled essential items in the wake of coronavirus outbreak.
Sprout Farmers’ focus on product innovation, emphasis on e-commerce, expansion of private label assortment and enhancement of technology bode well. The company is lowering operational complexity, optimizing production and improving in-stock position.
It has launched Sprouts.com website and mobile app to help customers experience hassle-free shopping. The company has tested self-checkout in few of its stores and will extend the same to other stores in the current financial year. Moreover, the company has partnered with Instacart to offer same-day delivery to customers. The home delivery business is now available in most of the company’s stores.
The company is making every effort to provide ready-to-eat, ready-to-heat, and ready-to-cook items to customers. Apart from these, the company is trying to expand private-label offerings in departments under the Sprouts Market Corner Deli, The Butcher Shop at Sprouts and Sprouts Fish Market brands. Product innovation continues to drive sales in private label items.
Wrapping Up
From aforementioned discussions, it is quite evident that Sprouts Farmers with a Zacks Rank #1 (Strong Buy) and a VGM Score of A appears a safe bet even amid this pandemic. The company has a trailing four-quarter positive earnings surprise of 37.2%, on average. It has a long-term earnings growth rate of 9.2%. Moreover, the Zacks Consensus Estimate for its current financial year earnings suggests an increase of 33.6% from the year-ago period. You can see the complete list of today’s Zacks #1 Rank stocks here.
3 More Stocks to Safeguard the Portfolio
Hain Celestial (HAIN - Free Report) has a trailing four-quarter positive earnings surprise of 9.9%, on average. The stock flaunts a Zacks Rank #1.
SpartanNash Company (SPTN - Free Report) reported a positive earnings surprise in the last reported quarter. It sports a Zacks Rank #1.
Grocery Outlet Holding (GO - Free Report) has a trailing four-quarter positive earnings surprise of 26.4%, on average. The stock carries a Zacks Rank #2 (Buy).
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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Sprout Farmers (SFM) Marches Ahead of Industry: Here's Why
Sprouts Farmers Market, Inc. (SFM - Free Report) has emerged as an investor favorite amid the current market volatility, thanks to the renewed tension between the United States and China, the fear stemming from the rise in number of coronavirus cases as the economy reopens and the alarming job scenario. Notably, this Phoenix, AZ-based company looks quite resilient owing to its business model and products it offers, which have been in demand amid the pandemic.
Shares of this provider of fresh, natural, and organic food products have advanced 13.2% in the past six months against the industry’s decline of 23.2%. Even the stock has fared better than the Retail – Wholesale sector that gained 12.8% and the S&P 500 index that fell 3.8% in the aforementioned period.
The stock got a boost following Sprouts Farmers’ first-quarter 2020 results, wherein both earnings and revenues not only improved year over year but also surpassed the Zacks Consensus Estimate for the third straight quarter. Further, the company sustained its positive comparable store sales trend. The company benefited from spike in demand during the latter part of the quarter as Americans stockpiled essential items in the wake of coronavirus outbreak.
Sprout Farmers’ focus on product innovation, emphasis on e-commerce, expansion of private label assortment and enhancement of technology bode well. The company is lowering operational complexity, optimizing production and improving in-stock position.
It has launched Sprouts.com website and mobile app to help customers experience hassle-free shopping. The company has tested self-checkout in few of its stores and will extend the same to other stores in the current financial year. Moreover, the company has partnered with Instacart to offer same-day delivery to customers. The home delivery business is now available in most of the company’s stores.
The company is making every effort to provide ready-to-eat, ready-to-heat, and ready-to-cook items to customers. Apart from these, the company is trying to expand private-label offerings in departments under the Sprouts Market Corner Deli, The Butcher Shop at Sprouts and Sprouts Fish Market brands. Product innovation continues to drive sales in private label items.
Wrapping Up
From aforementioned discussions, it is quite evident that Sprouts Farmers with a Zacks Rank #1 (Strong Buy) and a VGM Score of A appears a safe bet even amid this pandemic. The company has a trailing four-quarter positive earnings surprise of 37.2%, on average. It has a long-term earnings growth rate of 9.2%. Moreover, the Zacks Consensus Estimate for its current financial year earnings suggests an increase of 33.6% from the year-ago period. You can see the complete list of today’s Zacks #1 Rank stocks here.
3 More Stocks to Safeguard the Portfolio
Hain Celestial (HAIN - Free Report) has a trailing four-quarter positive earnings surprise of 9.9%, on average. The stock flaunts a Zacks Rank #1.
SpartanNash Company (SPTN - Free Report) reported a positive earnings surprise in the last reported quarter. It sports a Zacks Rank #1.
Grocery Outlet Holding (GO - Free Report) has a trailing four-quarter positive earnings surprise of 26.4%, on average. The stock carries a Zacks Rank #2 (Buy).
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>