Sprouts Farmers (SFM) closed the most recent trading day at $86.77, moving +2.4% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.62%. Meanwhile, the Dow lost 1.87%, and the Nasdaq, a tech-heavy index, lost 1.98%.
The natural and organic food retailer's stock has dropped by 2.47% in the past month, exceeding the Retail-Wholesale sector's loss of 6.71% and lagging the S&P 500's loss of 0.03%.
The upcoming earnings release of Sprouts Farmers will be of great interest to investors. The company is forecasted to report an EPS of $1.35, showcasing no movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $2.33 billion, reflecting a 4.91% rise from the equivalent quarter last year.
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.
It is also important to note the recent changes to analyst estimates for Sprouts Farmers. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0% fall in the Zacks Consensus EPS estimate. At present, Sprouts Farmers boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Sprouts Farmers is currently exchanging hands at a Forward P/E ratio of 15.21. This signifies no noticeable deviation in comparison to the average Forward P/E of 15.21 for its industry.
Investors should also note that SFM has a PEG ratio of 1.79 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Food - Natural Foods Products industry held an average PEG ratio of 1.68.
The Food - Natural Foods Products industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 217, this industry ranks in the bottom 12% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Sprouts Farmers Market, Inc. (SFM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).