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Sprouts Farmers (SFM) Gains As Market Dips: What You Should Know

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Sprouts Farmers (SFM - Free Report) ended the recent trading session at $110.97, demonstrating a +0.51% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.93%. At the same time, the Dow lost 0.41%, and the tech-heavy Nasdaq lost 1.53%.

Prior to today's trading, shares of the natural and organic food retailer had gained 6.11% over the past month. This has outpaced the Retail-Wholesale sector's gain of 5.61% and the S&P 500's gain of 2.17% in that time.

Investors will be eagerly watching for the performance of Sprouts Farmers in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 30, 2024. The company's upcoming EPS is projected at $0.75, signifying a 15.38% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.87 billion, up 8.9% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.37 per share and revenue of $7.5 billion. These totals would mark changes of +18.66% and +9.63%, respectively, from last year.

Any recent changes to analyst estimates for Sprouts Farmers should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Sprouts Farmers is carrying a Zacks Rank of #2 (Buy).

In terms of valuation, Sprouts Farmers is currently trading at a Forward P/E ratio of 32.76. This denotes a premium relative to the industry's average Forward P/E of 16.08.

Meanwhile, SFM's PEG ratio is currently 3.14. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Food - Natural Foods Products industry held an average PEG ratio of 2.

The Food - Natural Foods Products industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 166, positioning it in the bottom 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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