In the latest close session, Sprouts Farmers (SFM) was down 2.08% at $83.61. The stock fell short of the S&P 500, which registered a loss of 0.57% for the day. Elsewhere, the Dow saw an upswing of 0.64%, while the tech-heavy Nasdaq depreciated by 1.15%.
Heading into today, shares of the natural and organic food retailer had lost 3.39% over the past month, lagging the Retail-Wholesale sector's loss of 3.04% and the S&P 500's gain of 2.14%.
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 $1.35, showcasing no movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.33 billion, indicating a 4.91% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.57 per share and a revenue of $9.51 billion, representing changes of +4.9% and +8.04%, respectively, from the prior year.
Any recent changes to analyst estimates for Sprouts Farmers should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Sprouts Farmers is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Sprouts Farmers's current valuation metrics, including its Forward P/E ratio of 15.33. This expresses no noticeable deviation compared to the average Forward P/E of 15.33 of its industry.
It's also important to note that SFM currently trades at a PEG ratio of 1.81. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Food - Natural Foods Products industry had an average PEG ratio of 1.72.
The Food - Natural Foods Products industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 216, this industry ranks in the bottom 12% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Sprouts Farmers Market, Inc. (SFM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).