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Are Investors Undervaluing Sprouts Farmers Market (SFM) Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Sprouts Farmers Market (SFM - Free Report) . SFM is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 12.67, which compares to its industry's average of 14.42. Over the past 52 weeks, SFM's Forward P/E has been as high as 14.40 and as low as 10.38, with a median of 12.76.
Investors will also notice that SFM has a PEG ratio of 1.33. 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 1.50 right now. SFM's PEG has been as high as 1.98 and as low as 1.28, with a median of 1.67, all within the past year.
Finally, we should also recognize that SFM has a P/CF ratio of 6.91. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. SFM's P/CF compares to its industry's average P/CF of 9.76. Over the past 52 weeks, SFM's P/CF has been as high as 7.56 and as low as 5.28, with a median of 6.63.
These are just a handful of the figures considered in Sprouts Farmers Market's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SFM is an impressive value stock right now.
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Are Investors Undervaluing Sprouts Farmers Market (SFM) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Sprouts Farmers Market (SFM - Free Report) . SFM is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 12.67, which compares to its industry's average of 14.42. Over the past 52 weeks, SFM's Forward P/E has been as high as 14.40 and as low as 10.38, with a median of 12.76.
Investors will also notice that SFM has a PEG ratio of 1.33. 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 1.50 right now. SFM's PEG has been as high as 1.98 and as low as 1.28, with a median of 1.67, all within the past year.
Finally, we should also recognize that SFM has a P/CF ratio of 6.91. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. SFM's P/CF compares to its industry's average P/CF of 9.76. Over the past 52 weeks, SFM's P/CF has been as high as 7.56 and as low as 5.28, with a median of 6.63.
These are just a handful of the figures considered in Sprouts Farmers Market's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SFM is an impressive value stock right now.