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Time to Buy Sprouts Farmers (SFM) Ahead of Q1 Earnings?
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As Sprouts Farmers Market, Inc. (SFM - Free Report) gears up to unveil its first-quarter 2024 earnings results on May 1 after market close, investors are contemplating whether now is the opportune moment to buy into this grocery chain.
Analysts' expectations for Sprouts Farmers' upcoming earnings paint an encouraging picture, with the Zacks Consensus Estimate for revenues standing at $1,839 million, which indicates a 6.1% improvement from the prior year. Furthermore, analysts anticipate a year-over-year increase in the bottom line, with the consensus estimate holding steady at $1.00 per share over the past 30 days, which suggests a modest uptick of 2% from last year.
These figures underscore Sprouts Farmers' resilience and growth potential in a competitive landscape. The company's commitment to offering a diverse range of high-quality products resonates strongly with consumers, fostering customer loyalty and repeat business. Additionally, by leveraging technology and implementing robust logistics solutions, Sprouts remains well-equipped to navigate potential disruptions and maintain operational efficiency.
Seizing the Opportunity
Sprouts Farmers is paving the way for success through strategic innovation, a customer-centric approach and an unwavering commitment to delivering exceptional value. With well-executed initiatives, the company has firmly established itself as a key player in the grocery industry.
Unlike conventional grocery chains that cater to a broad spectrum of consumers, Sprouts Farmers has differentiated itself by targeting health-conscious shoppers who prioritize quality and freshness. This focused strategy allows Sprouts to stand out in a crowded market, attracting customers seeking a curated selection of organic, sustainable and specialty products.
The company's proactive approach to innovation ensures it stays ahead of the curve and meets the evolving needs of its customer base. From expanding its assortment of Sprouts-branded products to enhancing the shopping experience through technological advancements, Sprouts Farmers demonstrates a commitment to innovation that sets it apart from competitors.
Sprouts Farmers plans to invest approximately $15 million in 2024 to bolster its loyalty program. This initiative aims to enhance customer retention by offering personalized incentives and rewards. Moreover, through strategic partnerships with Uber Eats, DoorDash and Instacart, the company is expanding its digital footprint and accelerating e-commerce growth.
With a focus on refining strategies and upgrading capabilities, Sprouts Farmers has exhibited robust revenue growth and consistent earnings performance, showcasing its resilience in the face of economic uncertainties. With a proven track record of prudent financial management and strategic investments, Sprouts instills confidence in investors seeking long-term value and growth potential.
Shares of Sprouts Farmers have surged 60.6% in the past six months, outpacing the Zacks Food-Natural Foods Products industry’s rise of 28.7%.
Sprouts Farmers Market, Inc. Price, Consensus and EPS Surprise
While Sprouts Farmers currently trades at a premium compared to industry peers, this elevated valuation is not without merit. With a forward 12-month price-to-earnings ratio of 22.29, surpassing the median level of 15.04 observed in the past year, Sprouts Farmers demonstrates its appeal to investors seeking growth opportunities. Moreover, when compared to the industry's forward 12-month P/E ratio of 15.16 and the S&P 500's ratio of 20.62, Sprouts' higher valuation reflects its position as a standout performer in the market.
The company's promising prospects and market potential further support its premium valuation. With its differentiated business model, resilience in the face of challenges and investor confidence, Sprouts Farmers remains an attractive option in the dynamic grocery industry.
Moreover, the growth trajectory for Sprouts Farmers appears promising, with the Zacks Consensus Estimate for sales for the current and next fiscal year standing at $7.3 billion and $7.88 billion, respectively. These figures indicate year-over-year growth of 6.7% and 8%. Similarly, the consensus estimate for earnings per share is pegged at $2.95 and $3.21 for the same periods, which suggests an increase of 3.9% and 8.7%, respectively.
What the Zacks Model Unveils
Our proven model conclusively predicts earnings beat for Sprouts Farmers this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here.
Sprouts Farmers currently has a Zacks Rank #2 and an Earnings ESP of +2.21%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
3 More Stocks With the Favorable Combination
Here are three more companies you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat this season:
Ross Stores (ROST - Free Report) currently has an Earnings ESP of +0.34% and carries a Zacks Rank #3. The Zacks Consensus Estimate for first-quarter fiscal 2024 earnings per share is pegged at $1.34, which suggests an increase of 22.9% year over year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ross Stores’ top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $4.82 billion, which indicates an increase of 7.3% from the figure reported in the prior-year quarter. ROST has a trailing four-quarter earnings surprise of 9.1%, on average.
Ollie's Bargain (OLLI - Free Report) currently has an Earnings ESP of +0.77% and a Zacks Rank of 3. The company is likely to register a rise in the bottom line when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 65 cents implies an increase of 32.7% from the year-ago reported number.
Ollie's Bargain’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $503.8 million, which suggests an increase of 9.7% from the prior-year quarter. OLLI has a trailing four-quarter earnings surprise of 7.3%, on average.
Coty (COTY - Free Report) currently has an Earnings ESP of +4.23% and a Zacks Rank #3. The company is expected to register top-line growth when it reports third-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for COTY’s quarterly revenues is pegged at $1.37 billion, which indicates an increase of 6.6% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for COTY’s quarterly earnings has been stable at 6 cents in the past 30 days, which calls for a 68.4% decline from the year-ago quarter’s reported number. COTY delivered an earnings beat of 115.3%, on average, in the trailing four quarters.
Image: Bigstock
Time to Buy Sprouts Farmers (SFM) Ahead of Q1 Earnings?
As Sprouts Farmers Market, Inc. (SFM - Free Report) gears up to unveil its first-quarter 2024 earnings results on May 1 after market close, investors are contemplating whether now is the opportune moment to buy into this grocery chain.
Analysts' expectations for Sprouts Farmers' upcoming earnings paint an encouraging picture, with the Zacks Consensus Estimate for revenues standing at $1,839 million, which indicates a 6.1% improvement from the prior year. Furthermore, analysts anticipate a year-over-year increase in the bottom line, with the consensus estimate holding steady at $1.00 per share over the past 30 days, which suggests a modest uptick of 2% from last year.
These figures underscore Sprouts Farmers' resilience and growth potential in a competitive landscape. The company's commitment to offering a diverse range of high-quality products resonates strongly with consumers, fostering customer loyalty and repeat business. Additionally, by leveraging technology and implementing robust logistics solutions, Sprouts remains well-equipped to navigate potential disruptions and maintain operational efficiency.
Seizing the Opportunity
Sprouts Farmers is paving the way for success through strategic innovation, a customer-centric approach and an unwavering commitment to delivering exceptional value. With well-executed initiatives, the company has firmly established itself as a key player in the grocery industry.
Unlike conventional grocery chains that cater to a broad spectrum of consumers, Sprouts Farmers has differentiated itself by targeting health-conscious shoppers who prioritize quality and freshness. This focused strategy allows Sprouts to stand out in a crowded market, attracting customers seeking a curated selection of organic, sustainable and specialty products.
The company's proactive approach to innovation ensures it stays ahead of the curve and meets the evolving needs of its customer base. From expanding its assortment of Sprouts-branded products to enhancing the shopping experience through technological advancements, Sprouts Farmers demonstrates a commitment to innovation that sets it apart from competitors.
Sprouts Farmers plans to invest approximately $15 million in 2024 to bolster its loyalty program. This initiative aims to enhance customer retention by offering personalized incentives and rewards. Moreover, through strategic partnerships with Uber Eats, DoorDash and Instacart, the company is expanding its digital footprint and accelerating e-commerce growth.
With a focus on refining strategies and upgrading capabilities, Sprouts Farmers has exhibited robust revenue growth and consistent earnings performance, showcasing its resilience in the face of economic uncertainties. With a proven track record of prudent financial management and strategic investments, Sprouts instills confidence in investors seeking long-term value and growth potential.
Shares of Sprouts Farmers have surged 60.6% in the past six months, outpacing the Zacks Food-Natural Foods Products industry’s rise of 28.7%.
Sprouts Farmers Market, Inc. Price, Consensus and EPS Surprise
Sprouts Farmers Market, Inc. price-consensus-eps-surprise-chart | Sprouts Farmers Market, Inc. Quote
Unlocking Value in Sprouts Farmers
While Sprouts Farmers currently trades at a premium compared to industry peers, this elevated valuation is not without merit. With a forward 12-month price-to-earnings ratio of 22.29, surpassing the median level of 15.04 observed in the past year, Sprouts Farmers demonstrates its appeal to investors seeking growth opportunities. Moreover, when compared to the industry's forward 12-month P/E ratio of 15.16 and the S&P 500's ratio of 20.62, Sprouts' higher valuation reflects its position as a standout performer in the market.
The company's promising prospects and market potential further support its premium valuation. With its differentiated business model, resilience in the face of challenges and investor confidence, Sprouts Farmers remains an attractive option in the dynamic grocery industry.
Moreover, the growth trajectory for Sprouts Farmers appears promising, with the Zacks Consensus Estimate for sales for the current and next fiscal year standing at $7.3 billion and $7.88 billion, respectively. These figures indicate year-over-year growth of 6.7% and 8%. Similarly, the consensus estimate for earnings per share is pegged at $2.95 and $3.21 for the same periods, which suggests an increase of 3.9% and 8.7%, respectively.
What the Zacks Model Unveils
Our proven model conclusively predicts earnings beat for Sprouts Farmers this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here.
Sprouts Farmers currently has a Zacks Rank #2 and an Earnings ESP of +2.21%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
3 More Stocks With the Favorable Combination
Here are three more companies you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat this season:
Ross Stores (ROST - Free Report) currently has an Earnings ESP of +0.34% and carries a Zacks Rank #3. The Zacks Consensus Estimate for first-quarter fiscal 2024 earnings per share is pegged at $1.34, which suggests an increase of 22.9% year over year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ross Stores’ top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $4.82 billion, which indicates an increase of 7.3% from the figure reported in the prior-year quarter. ROST has a trailing four-quarter earnings surprise of 9.1%, on average.
Ollie's Bargain (OLLI - Free Report) currently has an Earnings ESP of +0.77% and a Zacks Rank of 3. The company is likely to register a rise in the bottom line when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 65 cents implies an increase of 32.7% from the year-ago reported number.
Ollie's Bargain’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $503.8 million, which suggests an increase of 9.7% from the prior-year quarter. OLLI has a trailing four-quarter earnings surprise of 7.3%, on average.
Coty (COTY - Free Report) currently has an Earnings ESP of +4.23% and a Zacks Rank #3. The company is expected to register top-line growth when it reports third-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for COTY’s quarterly revenues is pegged at $1.37 billion, which indicates an increase of 6.6% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for COTY’s quarterly earnings has been stable at 6 cents in the past 30 days, which calls for a 68.4% decline from the year-ago quarter’s reported number. COTY delivered an earnings beat of 115.3%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.