Back to top

Image: Bigstock

Is Sprouts Farmers Market (SFM) Stock Outpacing Its Retail-Wholesale Peers This Year?

Read MoreHide Full Article

The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Sprouts Farmers (SFM - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Retail-Wholesale sector should help us answer this question.

Sprouts Farmers is a member of our Retail-Wholesale group, which includes 213 different companies and currently sits at #13 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Sprouts Farmers is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for SFM's full-year earnings has moved 8.2% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, SFM has gained about 136.5% so far this year. Meanwhile, stocks in the Retail-Wholesale group have gained about 21.1% on average. This means that Sprouts Farmers is performing better than its sector in terms of year-to-date returns.

Another Retail-Wholesale stock, which has outperformed the sector so far this year, is TJX (TJX - Free Report) . The stock has returned 21.5% year-to-date.

Over the past three months, TJX's consensus EPS estimate for the current year has increased 1.4%. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Sprouts Farmers is a member of the Food - Natural Foods Products industry, which includes 6 individual companies and currently sits at #180 in the Zacks Industry Rank. Stocks in this group have gained about 50.3% so far this year, so SFM is performing better this group in terms of year-to-date returns.

On the other hand, TJX belongs to the Retail - Discount Stores industry. This 9-stock industry is currently ranked #204. The industry has moved +20.3% year to date.

Going forward, investors interested in Retail-Wholesale stocks should continue to pay close attention to Sprouts Farmers and TJX as they could maintain their solid performance.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


The TJX Companies, Inc. (TJX) - free report >>

Sprouts Farmers Market, Inc. (SFM) - free report >>

Published in