Latest news with #SFM
Yahoo
4 days ago
- Business
- Yahoo
Sprouts Farmers Market Stock Nears 2 Bullish Trendlines
Grocery chain Sprouts Farmers Market Inc (NASDAQ:SFM) has been chopping higher over the past year, doubling since last May and up 30% in 2025. However, last week, the moved back toward the $160 floor. This dip pushed SFM within one standard deviation of the historically bullish 50-day and 80-day moving averages. Per Schaeffer's Senior Quantitative Analyst Rocky White, SFM has made seven similar approaches to the 50-day trendline and five to the 80-day trendline over the past three years. The stock was higher one month later 71% of the time following the former signal, and 100% following the latter, averaging gains of 6.3% and 7.8%, respectively. A comparable move from SFM's current perch of $164.65 would put the shares as high as $177 by the end of June. The stock has plenty of room for upgrades as well. Heading into today, nine of the 14 analysts in coverage sport a tepid "hold" recommendation. Meanwhile, options are looking like an affordable way to go. This is per SFM's Schaeffer's Volatility Index (SVI) of 36%, which sits in the 23rd percentile of its annual range. Plus, the security's Schaeffer's Volatility Scorecard (SVS) sits at a higher 82 out of 100, meaning it has outperformed options traders' volatility expectations over the past year. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
3 Mid-Cap Stocks Worth Your Attention
Large trillion-dollar companies are tightening their grip on the market, often by acquiring smaller rivals. This trend will likely pick up with new regulatory leadership, but a few mid-sized businesses will continue prospering by anchoring themselves in unique market segments. Digging up these buried treasures isn't easy, and that's exactly why we created StockStory. That said, here are three of our favorite mid-cap stocks that could amplify your portfolio's returns. Market Cap: $15.99 billion Playing on the secular trend of healthier living, Sprouts Farmers Market (NASDAQ:SFM) is a grocery store chain emphasizing natural and organic products. Why Do We Watch SFM? Aggressive strategy of rolling out new stores to gobble up whitespace is prudent given its same-store sales growth Comparable store sales rose by 6.6% on average over the past two years, demonstrating its ability to drive increased spending at existing locations Free cash flow margin grew by 2.1 percentage points over the last year, giving the company more chips to play with Sprouts is trading at $163 per share, or 33.6x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it's free. Market Cap: $20.94 billion Founded in 2003 as Gene Security Network before rebranding in 2012, Natera (NASDAQ:NTRA) develops and commercializes genetic tests for prenatal screening, cancer detection, and organ transplant monitoring using its proprietary cell-free DNA technology. Why Is NTRA a Good Business? Products are reaching more customers as its tests processed averaged 23.1% growth over the past two years Adjusted operating profits and efficiency rose over the last two years as it benefited from some fixed cost leverage Free cash flow profile has moved into positive territory over the last five years, showing the company has crossed a key inflection point Natera's stock price of $153.89 implies a valuation ratio of 10.1x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it's free. Market Cap: $13.39 billion With roots dating back to 1914 and deep ties to nearly all U.S. cabinet-level departments, Booz Allen Hamilton (NYSE:BAH) provides management consulting, technology services, and cybersecurity solutions primarily to U.S. government agencies and military branches. Why Are We Backing BAH? Market share has increased this cycle as its 13.7% annual revenue growth over the last two years was exceptional Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 12.9% over the past two years Share repurchases have amplified shareholder returns as its annual earnings per share growth of 14.9% exceeded its revenue gains over the last five years At $108.40 per share, Booz Allen Hamilton trades at 15.7x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.
Yahoo
22-05-2025
- Business
- Yahoo
Sprouts Farmers Market (SFM): A Strong Company with Smart Capital Deployment
Investment management company First Pacific Advisors recently released its 'FPA Queens Road Small Cap Value Fund' first quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, the fund returned -2.51% compared to a -7.74% return for the Russell 2000 Value Index. President Trump announced his tariffs on April 2nd, causing equity markets to decline sharply and increasing volatility. Additionally, you can check the fund's top 5 holdings to determine its best picks for 2025. In its first-quarter 2025 investor letter, FPA Queens Road Small Cap Value Fund highlighted stocks such as Sprouts Farmers Market, Inc. (NASDAQ:SFM). Sprouts Farmers Market, Inc. (NASDAQ:SFM) is a retailer of fresh, natural, and organic food products under the Sprouts brand. The one-month return of Sprouts Farmers Market, Inc. (NASDAQ:SFM) was -1.20%, and its shares gained 104.09% of their value over the last 52 weeks. On May 21, 2025, Sprouts Farmers Market, Inc. (NASDAQ:SFM) stock closed at $164.68 per share with a market capitalization of $16.115 billion. FPA Queens Road Small Cap Value Fund stated the following regarding Sprouts Farmers Market, Inc. (NASDAQ:SFM) in its Q1 2025 investor letter: "Sprouts Farmers Market, Inc. (NASDAQ:SFM) is a grocer focusing on fresh, natural and organic products. The company has best-in-class margins, attractive returns on capital and great new store economics. Sprouts accelerated its unit growth from 12 stores a year to 33 stores in 2024 on a base of roughly 400 stores. Over the past year, SFM's stock has performed extremely well after reporting consistently strong operating results and from a low initial valuation.11 We have been trimming our position since the third quarter of 2024 and, as of quarter end, Sprouts sat just outside the top ten holdings. Although SFM's share price has increased faster than bottom line results, we believe SFM still trades in the 'range of reasonableness' for a high-quality, non-cyclical franchise that can reinvest capital at attractive rates of return." A bright, colorful display of fresh produce in a grocery store. Sprouts Farmers Market, Inc. (NASDAQ:SFM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held Sprouts Farmers Market, Inc. (NASDAQ:SFM) at the end of the fourth quarter which was 37 in the previous quarter. Sprouts Farmers Market, Inc.'s (NASDAQ:SFM) sales rose 19% to $2.2 billion in Q1 2025. While we acknowledge the potential of Sprouts Farmers Market, Inc. (NASDAQ:SFM) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains. In another article, we covered Sprouts Farmers Market, Inc. (NASDAQ:SFM) and shared the list of best stocks to buy according to Jim Simons' Renaissance Technologies. In its Q1 2025 investor letter, RF Capital Management highlighted Sprouts Farmers Market, Inc.'s (NASDAQ:SFM) promising long-term outlook. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
21-05-2025
- Business
- Yahoo
3 Must-Buy Low-Beta Stocks Flying High Year to Date With More Upside
Wall Street saw an impressive bull run in 2023 and 2024. However, 2025 has turned out mixed so far for the U.S. stock markets. The rally initially paused due to concerns of sticky inflation and the Fed's ambiguity about continuing the low-interest rate regime after a 1% cut in the benchmark lending rate last year. However, severe volatility gripped Wall Street since the beginning of April following the implementation of the Trump administration's reciprocal tariff policies. Although the baseline tariff was 10%, the actual tariff rate exceeded 70% for several major trading partners of the United States. These countries have also imposed retaliatory tariffs, which heightened the fear of a global trade war. Although some trade-related negotiations have been settled and negotiations with other major countries are ongoing, we are not out of the woods. At this stage, we recommend three low-beta (beta >0 <1) stocks with a favorable Zacks Rank that have soared year to date. Their favorable Zacks Rank indicates more upside in the near future. The stocks are: Philip Morris International Inc. PM, Sprouts Farmers Market Inc. SFM and Newmont Corp. NEM. Each of our picks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. The chart below shows the price performance of our three picks year to date. Image Source: Zacks Investment Research Philip Morris has benefited from strong pricing power and an expanding smoke-free product portfolio. PM has been making significant progress with its smoke-free transition, with products like IQOS and ZYN contributing to strong performance. In fact, PM aims to become substantially smoke-free by 2030. Philip Morris is set for another year of robust growth in 2025, driven by increasing demand across all product categories. PM anticipates positive volume growth for the fifth consecutive year, with an expected increase of 2%. Smoke-free products remain a key growth driver, projected to expand by 12-14%, reinforcing PM's strategic shift toward reduced-risk alternatives. Philip Morris has an expected revenue and earnings growth rate of 8.1% and 13.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3.3% over the last 30 days. PM has a beta of 0.50. The stock price has jumped 44.7% year to date. Sprouts Farmers' focus on product innovation, emphasis on e-commerce, expansion of private label offerings and targeted marketing with everyday great pricing bodes well. SFM has been lowering operational complexity, optimizing production, improving in-stock position and updating to smaller-format stores. These efforts helped SFM post better-than-expected fourth-quarter 2024 results, wherein both top and bottom lines grew year over year. Buoyed by the performance, Sprouts Farmers provided a decent 2025 view. SFM expects net sales to rise between 10.5% and 12.5% with comps anticipated to increase in the range of 4.5-6.5%. SFM's strong sales growth, margin expansion and disciplined financial management position it as a compelling investment opportunity. Sprouts Farmers has an expected revenue and earnings growth rate of 13.7% and 35.5%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.4% over the last seven days. SFM has a beta of 0.87. The stock price has surged 32.2% year to date. Newmont is making notable progress with its growth projects. NEM is likely to gain from several projects, including the Tanami expansion. The acquisition of Newcrest also created an industry-leading portfolio providing opportunities for significant synergies. NEM also remains focused on improving operational efficiency and returning value to its shareholders. Newmont has received full funds approval for its Ahafo North project, which has reached the execution stage. Commercial production for the project is expected to commence in second-half 2025. NEM remains committed to Ghana, investing $950 million to $1,050 million in development capital for Ahafo North. Newmont has an expected revenue and earnings growth rate of 2% and 12.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 5.4% over the last 30 days. NEM has a beta of 0.31. The stock price has climbed 40.5% year to date. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Philip Morris International Inc. (PM) : Free Stock Analysis Report Newmont Corporation (NEM) : Free Stock Analysis Report Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-05-2025
- Business
- Yahoo
SFM Q1 Earnings Call: Sprouts Farmers Market Reports Outperformance and Expands Growth Initiatives
Grocery store chain Sprouts Farmers Market (NASDAQ:SFM) reported Q1 CY2025 results exceeding the market's revenue expectations , with sales up 18.7% year on year to $2.24 billion. Its non-GAAP profit of $1.81 per share was 16.5% above analysts' consensus estimates. Is now the time to buy SFM? Find out in our full research report (it's free). Revenue: $2.24 billion vs analyst estimates of $2.21 billion (18.7% year-on-year growth, 1.4% beat) Adjusted EPS: $1.81 vs analyst estimates of $1.55 (16.5% beat) Adjusted EBITDA: $263.2 million vs analyst estimates of $242.5 million (11.8% margin, 8.5% beat) Management raised its full-year Adjusted EPS guidance to $5.02 at the midpoint, a 9.1% increase Operating Margin: 10.1%, up from 7.9% in the same quarter last year Free Cash Flow Margin: 10.7%, up from 8.9% in the same quarter last year Locations: 443 at quarter end, up from 414 in the same quarter last year Same-Store Sales rose 11.7% year on year (4% in the same quarter last year) Market Capitalization: $15.51 billion Sprouts Farmers Market opened 2025 with financial results that surpassed Wall Street's expectations, driven by notable same-store sales growth, increasing customer traffic, and effective inventory and supply chain management. Management credited these results to high demand for health-focused products, a strong performance by new store openings, and broad-based category strength. CEO Jack Sinclair highlighted the company's focus on serving health-conscious consumers, stating, 'Our strategic commitment to our health enthusiast target customer is clearly resonating, driving both traffic and sales.' Looking ahead, Sprouts' leadership raised its full-year adjusted EPS forecast. The team pointed to continued investments in loyalty initiatives, supply chain infrastructure, and the expansion of self-distribution, particularly in fresh meat and seafood. President Nick Konat expressed optimism about the upcoming national launch of the loyalty program, noting, 'We're really happy with what we're seeing in the 35 stores we're currently in right plan moving forward is to begin the national launch in the second half of the year.' Sprouts' management attributed Q1's performance to a combination of health and wellness trends, operational improvements, and expansion initiatives. Category strength and new store productivity were emphasized as central to the company's outperformance relative to market expectations, while supply chain changes and customer engagement efforts also played meaningful roles. Health-oriented product demand: Management described continued momentum in attribute-driven categories such as organic, gluten-free, and plant-based foods, which are outperforming more traditional grocery segments. This demand has driven both traffic and higher average spending among existing and new customers. New store productivity: Recently opened stores, including those from 2022 and 2023, are generating strong comparable sales, with management noting these newer locations are 'outperforming' the broader store base. The pipeline for new stores remains robust, supporting future growth. Loyalty program rollout: Early results from the pilot loyalty program in 35 stores have met or exceeded internal expectations. Leadership cited increased sign-ups and engagement, and outlined plans for a national rollout starting in the second half of 2025. Supply chain and self-distribution: The company has begun self-distributing fresh meat and seafood, aiming to improve product freshness and supply chain control. Management expects this initiative to yield both operational and margin benefits as it scales in coming quarters. E-commerce expansion: Online sales rose 28% year-on-year, now comprising 15% of total sales. Management highlighted growth across all digital partners, with Instacart remaining the largest contributor, and emphasized the value of omnichannel customers. Sprouts management expects future results to be shaped by ongoing investments in customer loyalty, supply chain capabilities, and category innovation. The outlook centers on sustaining growth in health-focused products and new markets, while balancing expense management and margin improvement. Loyalty program expansion: The national rollout of the loyalty program is expected to drive higher customer engagement and spending, with management citing increased frequency and basket size among participating customers. Supply chain optimization: Continued investment in self-distribution, particularly for fresh categories, is projected to support gross margin expansion and improved product availability, although management noted these benefits will build gradually through next year. Competitive and macro risks: Management acknowledged potential headwinds from broader economic uncertainty and possible cost inflation related to tariffs or supply chain inputs. The company is monitoring these developments but believes its differentiated product offering and customer focus provide resilience. Leah Jordan (Goldman Sachs): Asked how management balances reinvestment in growth initiatives with margin expansion given the moderation in comparable sales outlook. CFO Curtis Valentine responded that investments will continue at similar levels as last year, focused on loyalty, supply chain, and talent, while expecting sales growth to moderate through the year. Rupesh Parikh (Oppenheimer): Inquired about the early results and incremental benefits from the loyalty program pilot. President Nick Konat reported strong sign-ups and engagement, adding that national rollout is planned for the second half of the year, starting in Arizona. Ken Goldman (JP Morgan): Questioned whether new customer additions are accelerating and if Sprouts can benefit in a recessionary environment. Konat stated new customer growth is robust across both new and existing markets, and CEO Jack Sinclair believes the focus on health attributes should support demand regardless of macro conditions. Edward Kelly (Wells Fargo): Sought clarification on consumer behavior changes and margin benefits from tighter inventory. Leadership said there were no significant shifts in consumer behavior or trading down, and tighter inventory has aided margin, though efforts are ongoing to ensure full in-stock levels without missing sales. Mark Carden (UBS): Asked about capturing traffic from food-away-from-home channels and the potential impact of tariffs on store expansion costs. Management confirmed increased at-home meal spending and stated that, while monitoring building cost inflation, current returns are sufficient to absorb potential tariff effects. In the coming quarters, the StockStory team will be watching (1) the national rollout and customer adoption rates of Sprouts' new loyalty program, (2) operational execution and margin gains from expanded self-distribution of fresh meat and seafood, and (3) ongoing new store performance, particularly in emerging and existing markets. We will also monitor competitive responses as health-focused offerings proliferate across the grocery sector. Sprouts currently trades at a forward P/E ratio of 32.6×. Should you double down or take your chips? Find out in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
