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Sprouts Farmers Stock Up 22% in 3 Months: Book Profit or Stay Bullish?
ZACKS· 2025-01-08 15:41
Core Insights - Sprouts Farmers Market, Inc. (SFM) has experienced a stock surge of 22.1% over the past three months, driven by strong financial performance and strategic growth initiatives [1] - The company has outperformed the Zacks Food-Natural Foods Products industry, which rose by 13.6%, as well as the broader Retail and Wholesale sector and the S&P 500 index, which gained 7.3% and 4.1% respectively [1] Financial Performance - Sprouts Farmers generated $520 million in operating cash flow through the first three quarters of 2024, providing sufficient liquidity for growth initiatives [9] - The Zacks Consensus Estimate for earnings per share has been revised upward, with current and next fiscal year estimates at $3.68 and $4.21 per share, indicating expected year-over-year growth rates of 29.6% and 14.4% respectively [10] Market Positioning - Sprouts Farmers is trading at a forward 12-month price-to-earnings ratio of 32.92, which is higher than the industry average of 21.01 and the S&P 500's 22.37, reflecting investor confidence in its growth potential [12] - The company's premium valuation is justified by its robust business model and loyal customer base, particularly in the organic and healthy foods segment [13] Strategic Initiatives - The company is committed to offering fresh, natural, and organic products, with organic items now accounting for 46% of total produce sales [5] - Sprouts Farmers plans to open 33 new stores in fiscal 2024, focusing on areas with high growth potential and enhancing logistical efficiency by situating 80% of its stores within 250 miles of a distribution center [7] - E-commerce sales surged by 36% in the third quarter of fiscal 2024, making up 14.5% of total sales, supported by a new loyalty program aimed at increasing customer engagement [8] Product Development - The introduction of over 300 new Sprouts-branded items in 2024 demonstrates the company's ability to meet evolving customer demands and drive traffic among younger demographics [6]
Sprouts Farmers (SFM) Exceeds Market Returns: Some Facts to Consider
ZACKS· 2025-01-04 00:11
Sprouts Farmers (SFM) closed the latest trading day at $134.65, indicating a +1.27% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 1.26%. At the same time, the Dow added 0.8%, and the tech-heavy Nasdaq gained 1.77%.The natural and organic food retailer's stock has dropped by 12.36% in the past month, falling short of the Retail-Wholesale sector's loss of 1.93% and the S&P 500's loss of 2.82%.The upcoming earnings release of Sprouts Farmers will be of ...
SFM Trades Above 50 & 200-Day SMA: How Should Investors Play?
ZACKS· 2024-12-16 17:10
Sprouts Farmers Market, Inc. (SFM) ended Friday’s trading session at $147.79, demonstrating strong upward momentum and price stability. The stock traded well above its 50 and 200-day simple moving averages of $95.04 and $134.33, respectively. Now, investors must decide how to approach this stock. Should they cash in gains, make fresh investments or maintain their current stake?Sprouts Farmers stock has risen 206% in the past year, outpacing the industry and the S&P 500's growth of 81.8% and 28.6%, respectiv ...
Buy 4 Low-Beta Stocks SFM, TCOM, LRN & VIRT to Beat Market Volatility
ZACKS· 2024-12-12 14:56
The market's robust performance seems to hinge largely on the anticipation of a rate cut. A market downturn could be triggered if the Federal Reserve decides not to reduce rates. In this scenario, focusing on a portfolio of low-beta stocks may be a prudent approach to reduce exposure to potential market volatility.Stocks like Sprouts Farmers Market Inc. (SFM) , Trip.com Group Limited (TCOM) , Stride Inc. (LRN) and Virtu Financial Inc (VIRT) are worth betting on.What Does Beta of a Stock Measure?Beta measure ...
Here is Why Growth Investors Should Buy Sprouts Farmers (SFM) Now
ZACKS· 2024-11-29 18:51
Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Sty ...
JungKwanJang launches two new products that are good for immunity and energy at Sprouts Farmers Market
Prnewswire· 2024-11-29 15:00
What are the global health food trends? 'Botanical' and 'Energy'CERRITOS, Calif., Nov. 29, 2024 /PRNewswire/ -- Recently, JungKwanJang, a global comprehensive health brand and Korea's No. 1 red ginseng brand, added two new products to Sprouts Farmers Market: 'Everytime Immune Support' and 'Korean Red Ginseng Extract Vital Tonic'. 'Everytime Immune Support' is a stick-type red ginseng product that is good for boosting immunity, and it is a product developed for the US by focusing on 'Everytime' immunity. Thi ...
Sprouts Farmers Rises 49% in Three Months: What's Next for Investors?
ZACKS· 2024-11-21 16:56
Sprouts Farmers Market, Inc. (SFM) shares have gained 48.7% in the past three months, surpassing the industry and the broader S&P 500 index’s growth of 28.1% and 6.4%, respectively. This strong performance underscores the company’s solid business strategies and market positioning.Image Source: Zacks Investment ResearchSFM stock last traded at $142.75 and just 3.9% below its 52-week high of $148.56, touched on Nov. 12, 2024. This highlights the stock's strong upward momentum, indicating continued investor co ...
Looking for a Growth Stock? 3 Reasons Why Sprouts Farmers (SFM) is a Solid Choice
ZACKS· 2024-11-13 18:51
Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the tr ...
Sprouts Farmers Stock Hits 52-Week High: Buy, Hold or Take Profits?
ZACKS· 2024-11-12 15:45
Core Insights - Sprouts Farmers Market, Inc. (SFM) reached a new 52-week high of $147.21, attracting investor interest amid positive strategic initiatives and economic conditions [1] - The stock has risen 27.1% over the past month, outperforming the industry and broader market indices [2] Performance Metrics - SFM's stock performance has exceeded the Retail and Wholesale sector growth of 14.6%, as well as the S&P 500 index growth of 2.7% [2] - The stock trades above its 50-day and 200-day moving averages, indicating strong upward momentum and market confidence [2] Product and Market Expansion - The company is enhancing its product assortment, with organic produce sales now accounting for over 46% of total produce sales in Q3 2024 [3] - Sprouts Farmers opened nine new stores in Q3, bringing the total to 428 locations across 23 states, with plans for nearly 110 new stores approved [4] Customer Engagement Strategies - SFM is focusing on customer engagement through refined marketing strategies and technology investments to enhance personalized communications [5] - The company is developing a strong omnichannel experience by partnering with delivery services like Uber Eats, DoorDash, and Instacart [6] Financial Position - As of September 29, 2024, SFM has cash and cash equivalents of $309.7 million, sufficient to cover long-term debt and finance-lease obligations of $7.7 million [8] - The company generated $520.4 million in operating cash flow year-to-date and spent $132 million in capital expenditures [8] Future Outlook - For Q4 2024, SFM projects comparable store sales growth of 8-10% and adjusted earnings per share between 67 cents and 71 cents, up from 49 cents in the previous year [9] - The company anticipates total sales growth of approximately 12% for 2024, with adjusted earnings before interest and taxes expected between $490 million and $495 million [10] Analyst Sentiment - The Zacks Consensus Estimate for SFM's earnings per share has been revised upward, indicating expected year-over-year growth rates of 28.2% and 13.6% for the current and next fiscal years, respectively [11] - Despite a high forward price-to-earnings ratio of 36.06X compared to the industry average of 21.07X, this reflects market confidence in SFM's growth strategy [12] Investment Analysis - SFM's recent performance highlights its focus on product expansion, customer engagement, and operational improvements, presenting a compelling investment opportunity [14]
Buy 4 Low-Beta Stocks SFM, AVO, LRN, PGR to Beat Market Volatility
ZACKS· 2024-11-11 20:45
Key TakeawaysThese four stocks with low volatility risk are worth considering as markets gyrate in recent weeks.SFM, AVO, LRN and PGR shares all have a "low beta," meaning they are less volatile than many other stocks.Register now to see our 7 Best Stocks for the Next 30 Days report - free today!While U.S. markets have gained from investor optimism following the election, the lack of substantial fiscal support from China has disappointed investors. This could limit global economic growth, affecting U.S. com ...