Sprouts Farmers (SFM) Rises Higher Than Market: Key Facts

Sprouts Farmers (SFM) closed at $167.27 in the latest trading session, marking a +1.59% move from the prior day. This move outpaced the S&P 500's daily gain of 0.32%. Meanwhile, the Dow gained 0.53%, and the Nasdaq, a tech-heavy index, added 0.26%.

Coming into today, shares of the natural and organic food retailer had gained 2.13% in the past month. In that same time, the Retail-Wholesale sector gained 3.84%, while the S&P 500 gained 4.51%.

Market participants will be closely following the financial results of Sprouts Farmers in its upcoming release. The company plans to announce its earnings on July 30, 2025. In that report, analysts expect Sprouts Farmers to post earnings of $1.22 per share. This would mark year-over-year growth of 29.79%. Alongside, our most recent consensus estimate is anticipating revenue of $2.16 billion, indicating a 14.34% upward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.08 per share and a revenue of $8.77 billion, indicating changes of +35.47% and +13.6%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for Sprouts Farmers. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.04% increase. Right now, Sprouts Farmers possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Sprouts Farmers is currently trading at a Forward P/E ratio of 32.41. This valuation marks a premium compared to its industry average Forward P/E of 18.95.

Meanwhile, SFM's PEG ratio is currently 2.06. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Food - Natural Foods Products stocks are, on average, holding a PEG ratio of 1.71 based on yesterday's closing prices.

The Food - Natural Foods Products industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 180, which puts it in the bottom 28% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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