In the latest trading session, Sprouts Farmers (SFM) closed at $85.38, marking a +1.03% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.1%. Meanwhile, the Dow experienced a rise of 0.35%, and the technology-dominated Nasdaq saw a decrease of 0.43%.
The natural and organic food retailer's stock has dropped by 1.31% in the past month, exceeding the Retail-Wholesale sector's loss of 6.49% and the S&P 500's loss of 1.34%.
The upcoming earnings release of Sprouts Farmers will be of great interest to investors. On that day, Sprouts Farmers is projected to report earnings of $1.35 per share, which would represent no growth from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.33 billion, up 4.91% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.57 per share and revenue of $9.51 billion, which would represent changes of +4.9% and +8.04%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Sprouts Farmers. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Sprouts Farmers currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Sprouts Farmers is at present trading with a Forward P/E ratio of 15.17. This denotes a discount relative to the industry average Forward P/E of 15.25.
Also, we should mention that SFM has a PEG ratio of 1.79. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Food - Natural Foods Products was holding an average PEG ratio of 1.71 at yesterday's closing price.
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 Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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).