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Is Sprouts Farmers (SFM) a Great Value Stock Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Sprouts Farmers (SFM - Free Report) . SFM is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 13.27, while its industry has an average P/E of 15.60. SFM's Forward P/E has been as high as 17.93 and as low as 10.28, with a median of 15.76, all within the past year.
Investors should also note that SFM holds a PEG ratio of 1.44. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SFM's industry has an average PEG of 1.72 right now. Over the past 52 weeks, SFM's PEG has been as high as 4.78 and as low as 1.43, with a median of 2.21.
Finally, our model also underscores that SFM has a P/CF ratio of 6.62. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.44. Over the past 52 weeks, SFM's P/CF has been as high as 7.95 and as low as 4.44, with a median of 6.99.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Sprouts Farmers is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SFM feels like a great value stock at the moment.
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Is Sprouts Farmers (SFM) a Great Value Stock Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Sprouts Farmers (SFM - Free Report) . SFM is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 13.27, while its industry has an average P/E of 15.60. SFM's Forward P/E has been as high as 17.93 and as low as 10.28, with a median of 15.76, all within the past year.
Investors should also note that SFM holds a PEG ratio of 1.44. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SFM's industry has an average PEG of 1.72 right now. Over the past 52 weeks, SFM's PEG has been as high as 4.78 and as low as 1.43, with a median of 2.21.
Finally, our model also underscores that SFM has a P/CF ratio of 6.62. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.44. Over the past 52 weeks, SFM's P/CF has been as high as 7.95 and as low as 4.44, with a median of 6.99.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Sprouts Farmers is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SFM feels like a great value stock at the moment.