Core Viewpoint - Sprouts Farmers Market, Inc. reported strong second-quarter earnings, exceeding expectations and providing a positive outlook for 2024, driven by solid comparable sales and customer engagement [2][3][9]. Financial Performance - The company achieved quarterly earnings of 94 cents per share, surpassing the Zacks Consensus Estimate of 77 cents, marking a 32.4% increase from 71 cents in the previous year [3]. - Net sales reached $1,893.5 million, exceeding the Zacks Consensus Estimate of $1,828 million, and reflecting a 12% year-over-year growth [3]. - Comparable store sales rose by 6.7% during the quarter, with e-commerce sales growing by 30%, accounting for 14% of total sales [4]. Margins and Expenses - Adjusted gross profit increased by 14.5% year-over-year to $718.4 million, with gross margin expanding by 80 basis points to 37.9% [5]. - Adjusted operating income rose to $127.3 million from $99.7 million in the prior year, with adjusted operating margin also expanding by 80 basis points to 6.7% [5]. - SG&A expenses increased by 11.7% year-over-year to $556.4 million, remaining flat at 29.4% of net sales [5]. Store Expansion - The company opened five new stores during the quarter, bringing the total to 419 stores across 23 states as of June 30, 2024, with plans to open approximately 35 new stores in 2024 [6]. Cash Flow and Capital Expenditures - Sprouts Farmers ended the quarter with cash and cash equivalents of $177.3 million and long-term debt of approximately $8.1 million [7]. - The company generated cash from operations of $311.3 million and plans capital expenditures between $225 million and $245 million for 2024 [8]. Future Outlook - For Q3 2024, the company expects comparable store sales growth of 3.5% to 4.5% and adjusted earnings between 71-75 cents per share, compared to 65 cents in the previous year [8]. - For 2024, Sprouts Farmers anticipates net sales growth of 9-10% and comparable store sales growth of 4% to 5%, with adjusted earnings before interest and taxes projected between $445 million and $455 million [9]. - The company expects full-year adjusted earnings in the range of $3.29-$3.37 per share, an increase from $2.84 reported in 2023 [10]. Estimate Revisions - Estimates for the company have trended upward, with a consensus estimate shift of 8.36% over the past month [11]. Investment Score - Sprouts Farmers holds an average Growth Score of C, a Momentum Score of F, and a Value Score of D, resulting in an aggregate VGM Score of D [12].

From a technical perspective, Sprouts Farmers (SFM) is looking like an interesting pick, as it just reached a key level of support. SFM recently overtook the 20-day moving average, and this suggests a short-term bullish trend. The 20-day simple moving average is a popular investing tool. Traders like this SMA because it offers a look back at a stock's price over a shorter period and helps smooth out price fluctuations. The 20-day can also show more trend reversal signals than longer-term moving averages. Li ...

For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Sprouts Farmers (SFM) been one of those stocks this year? 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 the Retail-Wholesale sector. This group includes 209 individual stocks and currently holds a Zacks Sector Rank of #10. The ...

Higher retail sales and low weekly jobless claims in the United States ease concerns about a recession. In the meantime, the market will likely remain volatile as investors are eagerly awaiting Fed Chair Jerome Powell's speech at Jackson Hole, WY, on Aug 23, hoping to gain clearer insights into the future direction of interest rate cuts. Thus, there is a crucial need to construct a portfolio of low-beta stocks, which are expected to provide robust returns while mitigating the impact of market volatility. In ...

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. However, it isn't easy to find a great growth stock. 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 task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth ...

Sprouts Farmers (SFM) has experienced a remarkable surge in its stock price over the past three months. The stock has risen 25.2%, comfortably exceeding the industry's modest growth of 6.9%. In the past month, shares of this Phoenix, AZ-based company have risen 18.8%. This impressive run on the bourses can be attributed to Sprouts Farmers' better-than-expected second-quarter fiscal 2024 results, wherein the top and bottom lines increased year over year. The company's results were favorably impacted by decen ...

Company Overview - Sprouts Farmers Market, Inc. operates in a highly fragmented grocery store industry, focusing on fresh produce, a diverse foods section, and a vitamin department aimed at overall wellness [10] - The company is diversifying its offerings to align with changing consumer preferences for health and wellness products, including plant-based, gluten-free, keto-friendly, and grass-fed options [10] Investment Ratings - Sprouts Farmers Market is rated 2 (Buy) on the Zacks Rank, indicating a favorable investment outlook [11] - The company has a VGM Score of A, suggesting strong potential across value, growth, and momentum metrics [11] Performance Metrics - The Momentum Style Score for Sprouts Farmers Market is A, with shares increasing by 21.9% over the past four weeks [11] - For fiscal 2024, six analysts have revised their earnings estimates upwards in the last 60 days, with the Zacks Consensus Estimate rising by $0.19 to $3.30 per share [11] - The company has an average earnings surprise of 12%, indicating a history of exceeding earnings expectations [11] Strategic Focus - Sprouts Farmers Market is concentrating on natural and organic food, which is one of the fastest-growing segments in the grocery industry [10]

Sprouts Farmers (SFM) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future. Over the past month, shares of this natural and organic food retailer have returned +21.9%, compared to the Zacks S&P 500 composite's -0.4% change. During this period, the Zacks Food - Natural Foods Products industry, which Sprouts Farmers falls in, has gained 12.2%. The key question now is: Wha ...

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 task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Whi ...