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Natural food products have moved beyond a niche category and are becoming a larger part of everyday consumer spending. Growing attention to health, nutrition and sustainability is encouraging consumers across demographics to favor foods that support healthier lifestyles. This broadening demand creates a favorable backdrop for companies exposed to natural and better-for-you categories.

Ingredient quality and transparency now play a greater role in purchase decisions. Shoppers are paying closer attention to labels and increasingly favoring recognizable ingredients, minimal processing and attributes such as organic, non-GMO and preservative-free formulations. This suggests clean-label demand is becoming more durable, creating opportunities for manufacturers and retailers to strengthen their portfolios with differentiated products that better match evolving expectations around nutrition, simplicity and transparency.

Stronger food-labeling standards and public health initiatives are supporting the natural food category. Companies that emphasize transparent sourcing, product quality, ethical supply chains and sustainable production can strengthen brand credibility and customer loyalty. These advantages may also support premium pricing, as consumers show willingness to pay more for products they view as healthier, safer and responsibly produced.

Companies like Natural Grocers by Vitamin Cottage, Inc. (NGVC - Free Report) and The Kroger Co. (KR - Free Report) are fortifying their competitive positions by broadening product assortments, expanding private-label offerings and improving access to natural and organic foods. Strong sourcing capabilities and differentiated merchandising can help these companies capture a larger share of health-focused consumer spending while supporting customer retention and basket growth.

Future industry growth is likely to be shaped by product innovation and broader distribution. Investment in plant-based foods, functional nutrition, sustainable agriculture and digital commerce is enabling companies to reach new customer groups and respond more quickly to changing preferences. The expansion of online grocery platforms and convenient fulfillment options is also reducing barriers to purchase, making specialty products such as organic, gluten-free and nutrient-enhanced foods more accessible to a wider consumer base. The global healthy foods industry is expected to reach $1.25 trillion in 2026. By 2034, the market is forecast to expand to approximately $2.34 trillion, reflecting a compound annual growth rate of 8.2% over 2026-2034.

If you're looking to capitalize on this trend, our Natural Foods Screen makes it easy to identify high-potential stocks such as Dole plc (DOLE - Free Report) , United Natural Foods, Inc. (UNFI - Free Report) and Sprouts Farmers Market, Inc. (SFM - Free Report) .

Explore 40 cutting-edge investment themes with Zacks Thematic Investing Screens and uncover your next big opportunity.

3 Natural Food Stocks to WatchDole plc is well positioned to benefit from the growing consumer focus on health, wellness and fresh food, supported by its broad portfolio of fruits and vegetables sold across more than 85 countries. The company’s offerings, including bananas, pineapples, kiwi, avocados, cherries and berries, give it direct exposure to demand for nutritious foods. Management noted that fresh-produce consumption remained resilient in the second quarter of 2026, supported by long-term health and wellness trends. Dole is reinforcing this position through investments in production, sourcing and distribution capabilities. Strong European banana volumes provided support during the quarter, although adverse weather constrained pineapple availability. These initiatives highlight Dole’s focus on strengthening its fresh-produce platform while improving supply reliability and positioning the business to capture sustained consumer interest in healthier food choices.

Dole is also broadening its natural-food exposure through a diversified produce portfolio that includes kiwi, avocados, cherries and berries. In the second quarter, Diversified Fresh Produce Americas & ROW benefited from higher volumes of kiwi, avocados and cherries, while profitability improved with continued benefits from the restructuring of berry operations. This mix reduces dependence on bananas and pineapples and gives Dole more ways to participate in demand for fresh, health-oriented foods. The company is supporting these categories with farming investments in Latin America and spending on blueberry and avocado packing equipment in Europe. Such investments improve handling, capacity and efficiency around perishable products, helping Dole strengthen execution across categories while preserving the freshness and availability that underpin its consumer proposition.

This Zacks Rank #2 (Buy) company is pairing its fresh-produce portfolio with investments designed to strengthen sourcing and distribution over time. The company completed a bolt-on acquisition in its Irish growing operations to expand sourcing capabilities and its supply base, while the acquisition of Greenfood Fresh Produce in Scandinavia added a distribution facility in Helsingborg. Management plans to use that platform for automation, robotics and artificial-intelligence investments, aiming to improve efficiency and service for customers. Dole has also been upgrading ripening facilities across Ireland, France and Spain. Together, these initiatives reinforce the infrastructure behind its fresh-food offering and support growth in core markets. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

United Natural Foods is strengthening its position in natural and organic food as shoppers look for healthier, differentiated products and retailers use those choices to stand apart from mass and discount competitors. Management said natural and organic grocers, smaller chains and independents form part of UNFI’s roughly $90 billion target market. This demand is showing up in results: underlying sales in the Natural Products segment outperformed the broader market in the fourth quarter, supported by shopper interest in natural, organic, fresh and specialty products. For fiscal 2026, management said Natural Products sales grew about 7%, while EBITDA increased 19%. UNFI expects natural, organic and specialty products to continue growing faster than both the broader market and its overall portfolio.

Product innovation is another part of UNFI’s natural and organic strategy. During fiscal 2026, the company introduced more than 130 new private-brand SKUs, including a variety of health-forward products designed to help retail customers differentiate their assortments and respond to changing shopper preferences. UNFI also refreshed one of its core seafood brands in the fourth quarter, emphasizing a combination of quality and value. Beyond product launches, the company is expanding merchandising and supplier-support programs that help retailers create distinctive product mixes. It has also added AI-enabled features to the UNFI Insights platform, giving suppliers better store-level performance information and supporting improved demand planning. Together, these initiatives can help natural and organic suppliers reach shoppers more effectively while strengthening retailer differentiation.

This Zacks Rank #3 (Hold) company is also investing in the supply-chain capabilities needed to support growth in natural and organic foods, where assortments often include more innovation and slower-moving SKUs. UNFI completed the rollout of its AI-powered planning platform across all distribution centers to improve inventory management and fill rates, while Lean daily management reached 44 facilities. It also consolidated operations from Racine, WI, into an expanded Joliet, IL, distribution center with full-case automation. Management views availability as a major opportunity in natural products and is using technology to understand demand, promotions and ordering patterns more accurately.

Sprouts Farmers has built its business around making natural, organic and better-for-you products accessible to a broader consumer base, positioning itself as a differentiated retailer in the healthy grocery space. Fresh produce remains at the center of its merchandising strategy, complemented by a growing assortment of organic, plant-based and gluten-free products designed to meet evolving consumer preferences. During the second quarter of 2026, management emphasized that its attribute-based assortment continued to resonate with shoppers despite a cautious spending environment. Organic products now account for more than 30% of total sales, while organic penetration exceeds 50% in the dairy and produce categories, highlighting the strength of the company’s natural and organic positioning. The Sprouts private-label brand also continued to outperform the broader business, contributing 26% of quarterly sales and reinforcing customer loyalty through differentiated, health-focused offerings.

Sprouts is sustaining its leadership in natural foods through continuous product innovation and exclusive brand partnerships. The company introduced approximately 1,300 new products during the second quarter, prioritizing attributes that resonate with wellness-focused consumers, including organic, seed oil-free, fiber-rich, gut-health and protein-oriented offerings. Exclusive products such as Pasturebird chicken, now available nationwide across Sprouts stores, alongside emerging brands like Better Than Pop and Soup Salt Shots, strengthen the retailer’s differentiated assortment. Management is also expanding healthy meal solutions through fresh deli offerings, $9.99 wellness bowls, affordable family meals and innovative Sprouts-branded products, including seed oil-free frozen potatoes and fresh organic sourdough bread. These initiatives are intended to combine affordability with product innovation, helping consumers maintain healthier eating habits without compromising value.

Beyond merchandising, this Zacks Rank #3 company is investing in capabilities that strengthen its natural and organic ecosystem over the long term. The company continues to expand its loyalty and personalization platform, using first-party customer data to tailor promotions, improve product discovery and enhance marketing effectiveness. Supply-chain investments are also supporting its natural food strategy, with the Northern California distribution center now operational and nearly 85% of stores receiving fresh meat through Sprouts-operated distribution centers, improving freshness, service levels and cost efficiency. Management is extending self-distribution beyond produce and meat to selected Sprouts-brand products. Its aggressive store expansion program will broaden access to its natural and organic assortment. Together, these initiatives position Sprouts to deepen customer engagement, improve execution and support sustainable growth in the health-focused grocery market.

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It has been about a month since the last earnings report for Sprouts Farmers (SFM - Free Report) . Shares have lost about 6.7% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Sprouts Farmers due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Sprouts Farmers Market, Inc. before we dive into how investors and analysts have reacted as of late.

Sprouts Farmers Q2 Earnings Beat Despite Soft Comparable-Store SalesSprouts Farmers Market, Inc. reported second-quarter 2026 results, wherein the top line marginally missed the Zacks Consensus Estimate, while the bottom line beat the mark. The company continued to benefit from solid new-store productivity, strength in its Sprouts brand and double-digit e-commerce growth despite a cautious consumer environment and difficult year-over-year comparisons.

SFM’s Sales Mix Gains From Digital Strength and New StoresSprouts Farmers reported quarterly earnings of $1.37 per share, surpassing the Zacks Consensus Estimate of $1.35. The bottom line increased from $1.35 in the year-ago quarter. Net sales of this Phoenix, AZ-based natural and organic grocery retailer rose 4.7% year over year to $2,325.8 million. However, the figure marginally missed the Zacks Consensus Estimate of $2,329 million. Sales growth was driven by stellar new-store performance, partially offset by lower comparable-store sales.

Comparable-store sales declined 1% during the quarter, reflecting a cautious consumer backdrop and difficult prior-year comparisons. Management noted that comparable sales improved sequentially through May before softening in June due to exceptionally strong produce comparisons from last year. Business trends improved in July, with easier comparisons expected through the remainder of the year. E-commerce sales increased more than 12% and accounted for approximately 16% of total quarterly sales, underscoring continued strength in the company's omnichannel business. Sprouts brand continued to outperform the broader business and accounted for 26% of total sales.

The company continued to strengthen its differentiated merchandising strategy through innovation and foraging initiatives. During the quarter, Sprouts introduced approximately 1,300 new products, focusing on organic, seed-oil-free, fiber-rich, gut-health and protein-oriented offerings. Organic products now account for more than 30% of total sales, including more than half of dairy and produce sales. Management also highlighted growing traction in loyalty, personalization and first-party customer data capabilities to support long-term customer engagement.

Taking a Sneak Peek Into SFM’s MarginsGross profit increased to $900.6 million from $862.6 million in the year-ago quarter. However, the gross margin contracted 12 basis points to 38.7%, primarily due to loyalty program investments and elevated fuel costs, partially offset by benefits from self-distribution initiatives and vendor participation to support customer value. We had expected gross margin contraction of 30 basis points. Operating income came in at $174.2 million, down from $179.4 million in the year-ago quarter. Operating margin contracted 60 basis points to 7.5% from 8.1% in the prior-year period. We had expected operating margin to shrink 80 basis points.

SG&A expenses increased 5.8% year over year to $682.6 million. As a percentage of net sales, the metric deleveraged 30 basis points to 29.3%, primarily due to fixed-cost deleverage from soft comparable-store sales and continued business investments. Cost controls and lower incentive compensation provided a partial offset. We had expected SG&A expenses to deleverage 20 basis points

Sprouts Farmers’ Store UpdateSprouts Farmers opened seven new stores during the quarter, ending with 490 stores across 25 states. Management highlighted continued strong productivity from recently opened stores and noted a robust development pipeline, including more than 110 executed leases and 155 approved new stores, providing confidence in long-term expansion. The company also continued advancing its supply-chain transformation. Its Northern California distribution center became operational during the quarter, while nearly 85% of stores are now supplied with fresh meat through Sprouts distribution centers. Management believes these initiatives will improve freshness, service levels, shrink and long-term profitability while supporting affordability efforts.

A Look at SFM’s Financial PositionSprouts Farmers continued to generate healthy cash flows to support growth investments and shareholder returns. For the 26 weeks ended June 28, operating cash flow totaled $369 million, funding $186 million of capital expenditures (net of landlord reimbursements). The company repurchased 2.8 million shares for $210 million during the first six months of 2026 and had $626 million remaining under its existing $1 billion share repurchase authorization. Sprouts Farmers ended the quarter with $224 million in cash and cash equivalents and no borrowings outstanding under its $600 million revolving credit facility.

SFM Updates 2026 ViewFor the third quarter of 2026, management expects comparable-store sales in the range of down 0.5% to up 1.5%, with earnings per share between $1.20 and $1.24. Management also anticipates approximately 50 basis points of EBIT margin pressure, reflecting fixed-cost deleverage from softer comparable sales and the impact of a higher number of new-store openings compared with the year-ago quarter.

 On a 52-week basis, management expects net sales growth of 5.5% to 6.5%, comparable-store sales between down 0.5% and up 0.5%, EBIT in the range of $675-$685 million, capital expenditures (net of landlord reimbursements) of approximately $310 million and 42 net new stores in 2026. Earnings per share are projected between $5.32 and $5.40, assuming at least $300 million in share repurchases. Management reiterated that fiscal 2026 will be a 53-week year, with the additional week expected to contribute approximately $200 million in sales, $28 million in EBIT and 21 cents to earnings per share.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in fresh estimates.

VGM ScoresCurrently, Sprouts Farmers has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Sprouts Farmers has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Barrow Hanley Mewhinney & Strauss LLC acquired a new stake in shares of Sprouts Farmers Market, Inc. (NASDAQ:SFM – Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 1,552,500 shares of the company’s stock, valued at approximately $131,310,000. Barrow Hanley Mewhinney & Strauss LLC owned 1.66% of Sprouts Farmers Market as of its most recent SEC filing.

Other hedge funds have also bought and sold shares of the company. TD Private Client Wealth LLC grew its stake in shares of Sprouts Farmers Market by 1,309.1% in the 4th quarter. TD Private Client Wealth LLC now owns 310 shares of the company’s stock worth $25,000 after buying an additional 288 shares during the last quarter. Annis Gardner Whiting Capital Advisors LLC bought a new stake in shares of Sprouts Farmers Market in the first quarter worth approximately $25,000. Bell Investment Advisors Inc purchased a new stake in Sprouts Farmers Market during the 2nd quarter valued at $29,000. Newbridge Financial Services Group Inc. bought a new position in Sprouts Farmers Market in the second quarter valued at about $29,000. Finally, Clearstead Advisors LLC boosted its holdings in shares of Sprouts Farmers Market by 72.7% in the fourth quarter. Clearstead Advisors LLC now owns 380 shares of the company’s stock worth $30,000 after buying an additional 160 shares during the last quarter.

Sprouts Farmers Market Price Performance Shares of SFM stock opened at $81.08 on Monday. Sprouts Farmers Market, Inc. has a 1-year low of $64.75 and a 1-year high of $149.66. The company has a debt-to-equity ratio of 0.07, a current ratio of 0.99 and a quick ratio of 0.43. The company has a market cap of $7.56 billion, a price-to-earnings ratio of 15.53, a price-to-earnings-growth ratio of 2.01 and a beta of 0.68. The stock’s fifty day moving average price is $81.59 and its 200 day moving average price is $79.06.

Sprouts Farmers Market (NASDAQ:SFM – Get Free Report) last released its earnings results on Wednesday, July 29th. The company reported $1.37 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.35 by $0.02. Sprouts Farmers Market had a return on equity of 34.84% and a net margin of 5.58%.The firm had revenue of $2.33 billion for the quarter, compared to the consensus estimate of $2.32 billion. During the same period in the prior year, the firm earned $1.35 EPS. The firm’s revenue was up 4.7% on a year-over-year basis. Sprouts Farmers Market has set its Q3 2026 guidance at 1.200-1.240 EPS and its FY 2026 guidance at 5.320-5.400 EPS. On average, research analysts expect that Sprouts Farmers Market, Inc. will post 5.55 earnings per share for the current fiscal year. Analyst Upgrades and Downgrades A number of research analysts have recently weighed in on the company. Evercore reaffirmed an “outperform” rating on shares of Sprouts Farmers Market in a research report on Monday, July 27th. Roth Capital set a $82.00 target price on Sprouts Farmers Market in a research report on Friday, July 31st. JPMorgan Chase & Co. upgraded shares of Sprouts Farmers Market from a “neutral” rating to an “overweight” rating and boosted their target price for the stock from $80.00 to $103.00 in a report on Thursday, July 30th. Deutsche Bank Aktiengesellschaft restated a “hold” rating and issued a $84.00 price target on shares of Sprouts Farmers Market in a research report on Thursday, July 30th. Finally, UBS Group boosted their target price on Sprouts Farmers Market from $80.00 to $86.00 and gave the company a “neutral” rating in a research report on Thursday, July 30th. Seven research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Sprouts Farmers Market has a consensus rating of “Hold” and an average price target of $91.58.

Get Our Latest Report on Sprouts Farmers Market

Insider Transactions at Sprouts Farmers Market In other Sprouts Farmers Market news, Director Joseph D. O’leary sold 2,597 shares of Sprouts Farmers Market stock in a transaction on Friday, August 14th. The shares were sold at an average price of $82.57, for a total value of $214,434.29. Following the completion of the transaction, the director owned 14,710 shares of the company’s stock, valued at approximately $1,214,604.70. The trade was a 15.01% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, COO Nicholas Konat sold 12,538 shares of the stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $87.90, for a total value of $1,102,090.20. Following the transaction, the chief operating officer owned 66,119 shares in the company, valued at $5,811,860.10. This trade represents a 15.94% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 58,289 shares of company stock valued at $4,991,405 in the last 90 days. 1.30% of the stock is currently owned by company insiders.

Sprouts Farmers Market Company Profile (Free Report)

Sprouts Farmers Market, Inc (NASDAQ: SFM) is a specialty grocery retailer focused on fresh, natural and organic foods. Headquartered in Phoenix, Arizona, the company operates stores designed to offer an open-market shopping experience, emphasizing quality produce sourced from regional farmers alongside organic pantry staples, dairy, meat and seafood. Sprouts’ product assortment also includes bulk foods, vitamins and supplements, a deli and prepared foods, reflecting its commitment to wellness and affordable healthy living.

Founded in 2002 by members of the Boney family, Sprouts began as a single farmers market in Chandler, Arizona.

Further Reading Five stocks we like better than Sprouts Farmers Market VIG, VYM, and VYMI: Which Vanguard Dividend ETF Is Right for You? 3 Closed-End Funds to Maximize Dividend Payments Rocket Lab’s Sell-Off Is Fading—Is It Finally Safe to Buy? $27 Billion in Buybacks: 3 Stocks Betting Their Strong Runs Aren’t Over

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On August 21, 2026, Sprouts Farmers Market Inc
SFM +3.48% 87

shares rose 3.5% today, bringing the current price to $81.08. The stock has seen a 52-week range between $64.75 and $150.20, indicating significant volatility over the past year.

GF Value™ verdict: Current price of $81.08 is 16.0% below the GF Value™ estimate of $96.57. GF Score™ of 87/100, reflecting a strong overall performance across various metrics. Notable signal: Insider activity shows $0.4M in buying versus $23.3M in selling over the past 12 months, indicating a net selling of $22.8M. Is SFM Overvalued or Undervalued? Sprouts Farmers Market Inc's current price of $81.08 is 16.0% below its GF Value™ estimate of $96.57, suggesting that the stock is undervalued. The GF Value™ is GuruFocus' proprietary intrinsic-value estimate derived from historical trading multiples, past business growth, and future performance estimates, which provides a benchmark for assessing the stock's current market price. This creates a margin of safety for potential investors, as there is room for price appreciation towards its estimated fair value.

The GF Valuation label classifies SFM as modestly undervalued, indicating that there may be opportunities for growth. However, potential investors should be cautious of the stock's recent performance, particularly a 45.4% decline over the past year, which raises questions about the company's operational stability and market confidence.

How Does SFM's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 15.5x 15.9x (5-Year Median) Forward P/E 14.6x - Currently, SFM's P/E ratio of 15.5x is slightly below its 5-year median P/E of 15.9x, supporting the notion that the stock is trading at a more attractive valuation compared to its historical performance. This analysis aligns with the GF Value™ verdict, reinforcing the view that SFM may be undervalued at present.

What Does SFM's GF Score™ Tell Us? The GF Score™ measures a company's financial strength, profitability, growth potential, valuation, and momentum, providing a comprehensive overview of its quality as an investment. SFM's GF Score™ of 87/100 indicates a strong overall standing, with the highest ranks in profitability and growth.

Metric Rating GF Score™ 87/100 Financial Strength 7/10 Profitability 9/10 Growth 10/10 Valuation 8/10 Momentum 2/10 The strong profitability rank of 9/10 and an exceptional growth rank of 10/10 underscore SFM's capability to generate earnings and expand effectively. However, the low momentum rank of 2/10 raises concern about the stock's short-term price stability and market perception, suggesting that while the fundamentals may be strong, investor sentiment might be currently unfavorable.

What Are Gurus and Insiders Doing with SFM? Currently, 10 gurus hold shares of SFM, with 6 increasing their positions and 4 trimming their holdings in recent quarters. This indicates a generally positive sentiment among experienced investors, with many seeing value in the stock at its current level. However, the insider activity presents a contrasting narrative, as over the past 12 months, insiders have purchased $0.4M worth of shares but sold $23.3M, leading to a net selling of $22.8M. This pattern may suggest a lack of confidence from insiders in the short-term growth prospects of the company.

What This Means for Investors Given the current valuation metrics and the GF Value™ analysis, Sprouts Farmers Market Inc
SFM +3.48% 87

appears to be undervalued with potential for price appreciation. Despite the concerning insider selling, the strong GF Score™ and the modestly undervalued status present an opportunity to consider the stock, keeping in mind the volatility and recent performance issues. For more detailed insights, visit the Sprouts Farmers Market Inc (SFM) stock page.

Frequently Asked Questions What is SFM's GF Score™?

SFM has a GF Score™ of 87/100, indicating a strong overall performance based on various financial metrics.

Is SFM overvalued or undervalued?

According to the GF Value™, SFM is currently undervalued, with a significant margin of safety at 16.0% below its estimated fair value.

What is SFM's P/E ratio?

SFM's P/E (TTM) is 15.5x, which is slightly below its 5-year median of 15.9x, suggesting that the stock is trading at an attractive valuation compared to its historical levels.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Empowered Funds LLC grew its stake in shares of Sprouts Farmers Market, Inc. (NASDAQ: SFM) by 12,554.0% during the undefined quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 108,951 shares of the company's stock after acquiring an additional 108,090 shares during

Key Takeaways SFM's Q2 EPS beat estimates as sales rose, but comparable-store sales declined 1%.SFM opened seven stores in Q2 and plans 42 net new stores in fiscal 2026.SFM's margin fell as loyalty investments and fuel costs pressured profitability.
Sprouts Farmers Market, Inc. (SFM - Free Report) delivered a mixed second quarter as new-store productivity supported sales growth while comparable-store sales remained soft. Earnings per share came in above the Zacks Consensus Estimate, but the underlying demand picture was less favorable.

That split makes the second half especially important. Sprouts is accelerating openings and continuing loyalty, affordability and supply-chain investments while management expects near-term margin pressure to persist.

SFM’s Q2 Results Were MixedSecond-quarter earnings were $1.37 per share, above the Zacks Consensus Estimate of $1.35. Net sales increased 4.7% year over year to about $2.33 billion but produced a 0.1% negative sales surprise.

Comparable-store sales declined 1%, following a 1.7% decrease in the first quarter. The combination points to new units as the larger contributor to top-line growth while demand at established stores remains under pressure.

Sprouts New Stores Keep Delivering GrowthSprouts opened seven stores during the quarter and ended June with 490 locations across 25 states. Management plans 42 net new stores in fiscal 2026, including 43 openings and one closure.

The development pipeline includes more than 110 executed leases and 155 approved stores. Costco Wholesale Corporation (COST - Free Report) reported a 10.7% increase in July net sales, showing that large-format food retail demand remained healthy in parts of the market. BJ’s Wholesale Club Holdings, Inc. (BJ - Free Report) is also investing in club growth and member value, providing another expansion-focused peer for comparison.

SFM’s Margin Pressure Is the Key ConsequenceGross margin declined 12 basis points to 38.7% as loyalty investments and elevated fuel costs outweighed part of the benefits from self-distribution and vendor participation. Operating margin contracted 60 basis points to 7.5%.

Selling, general and administrative expenses rose 5.8% to $682.6 million and deleveraged 30 basis points. Lower comparable sales reduced fixed-cost absorption as Sprouts continued investing in the business.

Sprouts Guidance Sets a Tough Q3 TestFor the third quarter, management expects comparable-store sales between down 0.5% and up 1.5%, with earnings of $1.20-$1.24 per share. EBIT margin is expected to decline about 50 basis points.

The pressure reflects fixed-cost deleverage from softer comps and a heavier opening schedule. Sprouts expects at least 15 new stores in the third quarter, making traffic improvement and expense absorption key measures of operating progress.

Image Source: Zacks Investment Research

SFM’s Cash Flow Supports Continued InvestmentOperating cash flow totaled $369 million in the first half of 2026. Sprouts invested $186 million in capital expenditures, net of landlord reimbursements, and repurchased 2.8 million shares for $210 million.

The company ended the quarter with $224 million in cash and cash equivalents and no borrowings under its $600 million revolving credit facility. That liquidity supports new stores, supply-chain projects, loyalty initiatives and shareholder returns.

SFM’s Rank and Scores Reflect the Mixed QuarterThe near-term setup remains balanced. Store expansion, differentiated merchandising and cash generation provide support, but negative comps and ongoing margin pressure leave execution risk elevated as Sprouts moves through the second half.

SFM currently carries a Zacks Rank #3 (Hold). It also has a VGM Score of A, Value Score of B, Growth Score of B and Momentum Score of B. The favorable Style Scores indicate solid characteristics across those investing styles, while the Zacks Rank suggests a more neutral near-term earnings-revision backdrop. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Posted by Defense World Staff on Aug 13th, 2026

Assenagon Asset Management S.A. reduced its position in Sprouts Farmers Market, Inc. (NASDAQ:SFM – Free Report) by 64.5% in the 2nd quarter, according to its most recent filing with the SEC. The firm owned 42,515 shares of the company’s stock after selling 77,192 shares during the period. Assenagon Asset Management S.A.’s holdings in Sprouts Farmers Market were worth $3,596,000 at the end of the most recent reporting period.

Several other institutional investors also recently bought and sold shares of the business. MML Investors Services LLC lifted its stake in shares of Sprouts Farmers Market by 0.6% during the 2nd quarter. MML Investors Services LLC now owns 20,287 shares of the company’s stock worth $3,340,000 after purchasing an additional 124 shares during the period. Advisory Services Network LLC grew its position in shares of Sprouts Farmers Market by 1.0% in the second quarter. Advisory Services Network LLC now owns 13,486 shares of the company’s stock valued at $2,044,000 after purchasing an additional 139 shares during the period. Clearstead Advisors LLC grew its position in shares of Sprouts Farmers Market by 72.7% in the fourth quarter. Clearstead Advisors LLC now owns 380 shares of the company’s stock valued at $30,000 after purchasing an additional 160 shares during the period. Arkadios Wealth Advisors increased its stake in Sprouts Farmers Market by 4.3% in the fourth quarter. Arkadios Wealth Advisors now owns 4,106 shares of the company’s stock valued at $327,000 after purchasing an additional 171 shares during the last quarter. Finally, Sanctuary Advisors LLC increased its stake in Sprouts Farmers Market by 6.0% in the fourth quarter. Sanctuary Advisors LLC now owns 3,026 shares of the company’s stock valued at $241,000 after purchasing an additional 172 shares during the last quarter.

Wall Street Analysts Forecast Growth Several analysts have commented on SFM shares. Weiss Ratings restated a “hold (c)” rating on shares of Sprouts Farmers Market in a report on Wednesday, June 24th. Deutsche Bank Aktiengesellschaft reiterated a “hold” rating and set a $84.00 price objective on shares of Sprouts Farmers Market in a report on Thursday, July 30th. Royal Bank Of Canada reaffirmed an “outperform” rating and set a $114.00 price target on shares of Sprouts Farmers Market in a research report on Monday, June 1st. Evercore reiterated an “outperform” rating on shares of Sprouts Farmers Market in a report on Monday, July 27th. Finally, JPMorgan Chase & Co. upgraded Sprouts Farmers Market from a “neutral” rating to an “overweight” rating and boosted their target price for the stock from $80.00 to $103.00 in a report on Thursday, July 30th. Seven equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Sprouts Farmers Market currently has an average rating of “Hold” and an average price target of $91.58.

Check Out Our Latest Report on SFM

Insider Transactions at Sprouts Farmers Market In related news, COO Nicholas Konat sold 12,538 shares of the business’s stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $87.90, for a total transaction of $1,102,090.20. Following the completion of the sale, the chief operating officer owned 66,119 shares of the company’s stock, valued at $5,811,860.10. This represents a 15.94% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Jack Sinclair sold 10,788 shares of the stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $86.80, for a total transaction of $936,398.40. Following the sale, the chief executive officer owned 269,980 shares in the company, valued at approximately $23,434,264. This trade represents a 3.84% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 55,692 shares of company stock valued at $4,776,971. Insiders own 1.30% of the company’s stock.

Sprouts Farmers Market Stock Performance Sprouts Farmers Market stock opened at $86.07 on Thursday. Sprouts Farmers Market, Inc. has a 52 week low of $64.75 and a 52 week high of $152.25. The company has a current ratio of 0.99, a quick ratio of 0.43 and a debt-to-equity ratio of 0.07. The stock has a market cap of $8.03 billion, a P/E ratio of 16.49, a price-to-earnings-growth ratio of 2.09 and a beta of 0.68. The stock has a 50 day moving average of $82.23 and a 200-day moving average of $78.58.

Sprouts Farmers Market (NASDAQ:SFM – Get Free Report) last released its earnings results on Wednesday, July 29th. The company reported $1.37 earnings per share for the quarter, topping the consensus estimate of $1.35 by $0.02. Sprouts Farmers Market had a net margin of 5.58% and a return on equity of 34.84%. The company had revenue of $2.33 billion during the quarter, compared to the consensus estimate of $2.32 billion. During the same quarter in the previous year, the firm earned $1.35 EPS. The company’s revenue was up 4.7% on a year-over-year basis. Sprouts Farmers Market has set its Q3 2026 guidance at 1.200-1.240 EPS and its FY 2026 guidance at 5.320-5.400 EPS. On average, analysts expect that Sprouts Farmers Market, Inc. will post 5.55 EPS for the current fiscal year.

Sprouts Farmers Market Company Profile (Free Report)

Sprouts Farmers Market, Inc (NASDAQ: SFM) is a specialty grocery retailer focused on fresh, natural and organic foods. Headquartered in Phoenix, Arizona, the company operates stores designed to offer an open-market shopping experience, emphasizing quality produce sourced from regional farmers alongside organic pantry staples, dairy, meat and seafood. Sprouts’ product assortment also includes bulk foods, vitamins and supplements, a deli and prepared foods, reflecting its commitment to wellness and affordable healthy living.

Founded in 2002 by members of the Boney family, Sprouts began as a single farmers market in Chandler, Arizona.

Read More Five stocks we like better than Sprouts Farmers Market GE Vernova’s AI Power Boom Faces a Profit Test Cardinal Health Earnings: Can Perfection Get Priced In Twice? Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand Legacy Jet Builders Stall While Embraer Accelerates to New Highs Want to see what other hedge funds are holding SFM? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Sprouts Farmers Market, Inc. (NASDAQ:SFM – Free Report).

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Jack Sinclair, Chief Executive Officer of Sprouts Farmers Market (SFM +2.44%), sold 21,576 shares of common stock on August 3, 2026 and August 4, 2026. SEC Form 4 filing.

Transaction summaryMetricValueShares sold21,576Transaction value~$1.9 millionPost-transaction shares (directly held)~270,000Post-transaction value~$23.2 millionTransaction value based on SEC Form 4 weighted average sale price ($88.07); post-transaction value based on August 4, 2026 market close ($86.07).

Key questionsWhat was the mechanical nature of this disposal?
The transaction was a non-discretionary execution under a Rule 10b5-1 trading plan. It involved a cashless exercise where Sinclair converted 21,576 options at a strike price of $16.47 and immediately sold the resulting shares in multiple transactions at prices ranging from $85.70 to $90.56.How does this impact the CEO's overall equity alignment?
Sinclair retains substantial exposure to the company's performance, with a remaining direct position of ~270,000 shares as of the August 4, 2026 market close. This holdings base includes 231,284 shares of common stock and 38,696 restricted stock units, representing approximately 0.29% of the company's total shares outstanding.What is the status of the remaining equity compensation awards?
Beyond his direct common stock holdings, Sinclair continues to hold 75,516 direct derivative securities. Future vesting events for restricted stock units are scheduled annually through March 2029, providing continued long-term incentive alignment.What has been the recent share price context for this transaction?
At the August 4, 2026 market close, the stock was priced at $86.07, following a one-year total return of -44% as of the transaction date. The CEO's weighted average sale price of $88.07 was achieved across two trading sessions prior to the filing.Company OverviewMetricValueShare Price (as of market close 2026-08-04)$86.07Market Capitalization$8.0 billionRevenue (TTM)$9.0 billionNet Income (TTM)$502.9 millionCompany SnapshotSprouts Farmers Market operates a comprehensive retail platform offering fresh produce, meats, seafood, deli items, baked goods, dairy products, plant-based alternatives, vitamins, supplements, and shelf-stable groceries, generating revenue through both perishable and non-perishable product categories.The company operates a conventional grocery retail business model, generating revenue through direct consumer sales across its store network while maintaining operational efficiency through supply chain management and inventory optimization.Sprouts serves health-conscious and value-oriented consumers seeking natural, organic, and specialty food products, targeting households that prioritize nutritional quality and sustainable sourcing in their purchasing decisions.Sprouts Farmers Market is a significant player in the U.S. grocery retail sector with approximately 36,000 employees and a market capitalization of $8.0 billion. The company has established a competitive position through its specialized focus on natural and organic product offerings, differentiated from traditional grocery chains. With TTM revenue of $9.0 billion and net income of $502.9 million, Sprouts demonstrates operational scale and profitability within the consumer defensive sector.

What this transaction means for investorsSinclair’s sale of Sprouts shares looks like a move that should probably not concern investors.

He conducted a pre-planned sale under Rule 10b5-1, presumably to avoid the appearance of acting on inside information. Moreover, insiders often conduct options transactions because they are required, though it is unclear whether that is the case here.

Whatever the reason for the sale, investors should note that he only sold 7% of his holdings, implying that concerns about the company did not drive the sale.

Admittedly, the consumer staples stock fell over the last year, as inflation appeared to weigh on sales levels and margins. However, it had made gains of 264% over the previous five years, outperforming the S&P 500. Additionally, the stock trades at a relatively modest 16 times earnings, which implies that teh stock has become inexpensive.

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More recently, Sprouts stock has traded in a range since late last year. While it is unclear what could help bring some of its customers back, conditions are such that investors should probably follow Sinclair’s lead and hold their Sprouts shares.

Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Sprouts Farmers Market. The Motley Fool recommends the following options: long January 2028 $75 calls on Sprouts Farmers Market and short January 2028 $85 calls on Sprouts Farmers Market. The Motley Fool has a disclosure policy.

Shares of Sprouts Farmers Market (SFM +0.36%) climbed more than 16% this past week after the natural and organic grocery chain delivered healthier-than-expected financial results in its most recent quarter.

Image source: Getty Images.

New stores are fueling growth Sprouts' net sales grew 5% year over year to $2.3 billion in its fiscal second quarter, which ended on June 28.

The retailer opened 7 new stores during the quarter, bringing its total to 490 locations across 25 states.

However, Sprouts' comparable sales, which include revenue from stores open for at least 60 weeks, declined by 1%. Sprouts faced difficult comparisons to the prior-year quarter, when its competitors' supply chain disruptions drove additional traffic to its stores.

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Sprouts' gross margin also declined slightly to 38.7%, due in part to higher fuel costs.

All told, the company's earnings inched up 1% to $1.37 per share. That topped Wall Street's estimates, which had called for per-share profits of $1.34.

Sprouts also continues to crank out cash. Operating and free cash flow checked in at $369 million and $179 million, respectively, through the first half of 2026.

A long runway for further expansion Management expects same-store sales to turn positive in the third quarter. For the full year, the company expects net sales growth of 5.5% to 6.5%, with operating income of $675 million to $685 million and earnings per share of $5.32 to $5.40, driven by 42 net new store openings.

Looking even further ahead, Sprouts sees an opportunity to expand its store base to over 1,000 locations nationwide.

"Our pipeline remains robust with more than 110 executed leases and 155 approved new stores, giving us confidence in our ability to continue expanding access to Sprouts over the long term," chief financial officer Curtis Valentine said during a conference call with analysts.

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Sprouts Farmers Market. The Motley Fool recommends the following options: long January 2028 $75 calls on Sprouts Farmers Market and short January 2028 $85 calls on Sprouts Farmers Market. The Motley Fool has a disclosure policy.

PHOENIX--(BUSINESS WIRE)--Sprouts Farmers Market, Inc. (Nasdaq: SFM) today reported results for the 13-week second quarter ended June 28, 2026. “Our second-quarter results were in line with our expectations," said Jack Sinclair, chief executive officer of Sprouts Farmers Market. “As we continue to navigate a cautious consumer environment, we are encouraged by the strong performance of our new stores and the continued success of our foraging and innovation efforts. We are focused on driving deep.

Sprouts Farmers (SFM - Free Report) came out with quarterly earnings of $1.37 per share, beating the Zacks Consensus Estimate of $1.35 per share. This compares to earnings of $1.35 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +1.48%. A quarter ago, it was expected that this natural and organic food retailer would post earnings of $1.67 per share when it actually produced earnings of $1.71, delivering a surprise of +2.4%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Sprouts Farmers, which belongs to the Zacks Food - Natural Foods Products industry, posted revenues of $2.33 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.12%. This compares to year-ago revenues of $2.22 billion. The company has topped consensus revenue estimates just once over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Sprouts Farmers shares have lost about 2.4% since the beginning of the year versus the S&P 500's gain of 8.5%.

What's Next for Sprouts Farmers?While Sprouts Farmers has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Sprouts Farmers was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.28 on $2.34 billion in revenues for the coming quarter and $5.55 on $9.5 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Food - Natural Foods Products is currently in the top 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Performance Food Group (PFGC - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 12.

This food distributor is expected to post quarterly earnings of $1.62 per share in its upcoming report, which represents a year-over-year change of +4.5%. The consensus EPS estimate for the quarter has been revised 0.8% lower over the last 30 days to the current level.

Performance Food Group's revenues are expected to be $18.21 billion, up 7.5% from the year-ago quarter.

Sprouts Farmers (SFM - Free Report) reported $2.33 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 4.7%. EPS of $1.37 for the same period compares to $1.35 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $2.33 billion, representing a surprise of -0.12%. The company delivered an EPS surprise of +1.48%, with the consensus EPS estimate being $1.35.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Sprouts Farmers performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Comparable store sales growth: -1% versus the four-analyst average estimate of -0.8%.Stores at end of period: 490 versus the four-analyst average estimate of 492.New Stores Opened: 7 versus 8 estimated by three analysts on average.Stores at beginning of period: 483 compared to the 483 average estimate based on two analysts.View all Key Company Metrics for Sprouts Farmers here>>>

Shares of Sprouts Farmers have returned -8.1% over the past month versus the Zacks S&P 500 composite's +1.9% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Posted by Defense World Staff on Jul 27th, 2026

Delta Global Management LP purchased a new stake in shares of Sprouts Farmers Market, Inc. (NASDAQ:SFM – Free Report) during the 1st quarter, according to its most recent disclosure with the SEC. The fund purchased 22,135 shares of the company’s stock, valued at approximately $1,707,000.

Several other hedge funds and other institutional investors also recently made changes to their positions in SFM. MML Investors Services LLC boosted its position in Sprouts Farmers Market by 0.6% in the second quarter. MML Investors Services LLC now owns 20,287 shares of the company’s stock valued at $3,340,000 after buying an additional 124 shares in the last quarter. Advisory Services Network LLC grew its stake in shares of Sprouts Farmers Market by 1.0% during the second quarter. Advisory Services Network LLC now owns 13,486 shares of the company’s stock worth $2,044,000 after buying an additional 139 shares during the last quarter. Clearstead Advisors LLC grew its stake in shares of Sprouts Farmers Market by 72.7% during the fourth quarter. Clearstead Advisors LLC now owns 380 shares of the company’s stock worth $30,000 after buying an additional 160 shares during the last quarter. Arkadios Wealth Advisors increased its holdings in shares of Sprouts Farmers Market by 4.3% during the fourth quarter. Arkadios Wealth Advisors now owns 4,106 shares of the company’s stock worth $327,000 after buying an additional 171 shares in the last quarter. Finally, Sanctuary Advisors LLC increased its holdings in shares of Sprouts Farmers Market by 6.0% during the fourth quarter. Sanctuary Advisors LLC now owns 3,026 shares of the company’s stock worth $241,000 after buying an additional 172 shares in the last quarter.

Sprouts Farmers Market Price Performance SFM stock opened at $74.89 on Monday. The company has a market capitalization of $7.04 billion, a P/E ratio of 14.40, a PEG ratio of 1.98 and a beta of 0.67. The company has a fifty day moving average price of $82.42 and a 200-day moving average price of $77.92. The company has a debt-to-equity ratio of 0.07, a quick ratio of 0.42 and a current ratio of 0.92. Sprouts Farmers Market, Inc. has a 52-week low of $64.75 and a 52-week high of $165.97.

Sprouts Farmers Market (NASDAQ:SFM – Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The company reported $1.71 earnings per share for the quarter, topping the consensus estimate of $1.67 by $0.04. The company had revenue of $2.33 billion for the quarter, compared to analysts’ expectations of $2.32 billion. Sprouts Farmers Market had a net margin of 5.70% and a return on equity of 36.06%. Sprouts Farmers Market’s revenue for the quarter was up 4.1% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.81 earnings per share. Sprouts Farmers Market has set its FY 2026 guidance at 5.320-5.480 EPS and its Q2 2026 guidance at 1.320-1.360 EPS. As a group, equities analysts expect that Sprouts Farmers Market, Inc. will post 5.55 EPS for the current year.

Insider Buying and Selling at Sprouts Farmers Market In other news, CEO Jack Sinclair sold 10,788 shares of the firm’s stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $84.87, for a total transaction of $915,577.56. Following the completion of the transaction, the chief executive officer directly owned 269,980 shares in the company, valued at $22,913,202.60. This trade represents a 3.84% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Brandon F. Lombardi sold 406 shares of Sprouts Farmers Market stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $82.04, for a total value of $33,308.24. Following the completion of the transaction, the insider directly owned 6,801 shares in the company, valued at approximately $557,954.04. This represents a 5.63% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 45,310 shares of company stock worth $3,873,881. Insiders own 1.30% of the company’s stock.

Analysts Set New Price Targets SFM has been the topic of several recent research reports. Royal Bank Of Canada reissued an “outperform” rating and set a $114.00 price objective on shares of Sprouts Farmers Market in a report on Monday, June 1st. Evercore restated an “outperform” rating on shares of Sprouts Farmers Market in a research report on Thursday, April 30th. UBS Group upped their target price on Sprouts Farmers Market from $75.00 to $80.00 and gave the stock a “neutral” rating in a report on Wednesday. Melius Research downgraded Sprouts Farmers Market from a “hold” rating to a “sell” rating and set a $70.00 target price for the company. in a research report on Monday, April 6th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Sprouts Farmers Market in a research note on Wednesday, June 24th. Seven equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $96.62.

Check Out Our Latest Analysis on SFM

Sprouts Farmers Market Profile (Free Report)

Sprouts Farmers Market, Inc (NASDAQ: SFM) is a specialty grocery retailer focused on fresh, natural and organic foods. Headquartered in Phoenix, Arizona, the company operates stores designed to offer an open-market shopping experience, emphasizing quality produce sourced from regional farmers alongside organic pantry staples, dairy, meat and seafood. Sprouts’ product assortment also includes bulk foods, vitamins and supplements, a deli and prepared foods, reflecting its commitment to wellness and affordable healthy living.

Founded in 2002 by members of the Boney family, Sprouts began as a single farmers market in Chandler, Arizona.

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ABN Amro Investment Solutions reduced its stake in Sprouts Farmers Market, Inc. (NASDAQ:SFM – Free Report) by 22.7% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 106,867 shares of the company’s stock after selling 31,465 shares during the period. ABN Amro Investment Solutions owned approximately 0.11% of Sprouts Farmers Market worth $8,243,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently bought and sold shares of SFM. TD Private Client Wealth LLC increased its holdings in shares of Sprouts Farmers Market by 1,309.1% in the 4th quarter. TD Private Client Wealth LLC now owns 310 shares of the company’s stock worth $25,000 after acquiring an additional 288 shares during the period. Annis Gardner Whiting Capital Advisors LLC acquired a new position in Sprouts Farmers Market during the 1st quarter valued at about $25,000. Sound Income Strategies LLC bought a new stake in Sprouts Farmers Market during the fourth quarter worth approximately $27,000. Newbridge Financial Services Group Inc. bought a new stake in shares of Sprouts Farmers Market in the 2nd quarter worth $29,000. Finally, Clearstead Advisors LLC lifted its holdings in shares of Sprouts Farmers Market by 72.7% in the fourth quarter. Clearstead Advisors LLC now owns 380 shares of the company’s stock valued at $30,000 after buying an additional 160 shares during the period.

Analyst Ratings Changes Several equities analysts have recently issued reports on the stock. Melius Research cut shares of Sprouts Farmers Market from a “hold” rating to a “sell” rating and set a $70.00 price objective on the stock. in a research note on Monday, April 6th. Evercore reissued an “outperform” rating on shares of Sprouts Farmers Market in a research report on Thursday, April 30th. Royal Bank Of Canada restated an “outperform” rating and issued a $114.00 target price on shares of Sprouts Farmers Market in a research note on Monday, June 1st. JPMorgan Chase & Co. upped their target price on Sprouts Farmers Market from $78.00 to $80.00 and gave the stock a “neutral” rating in a research report on Wednesday. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Sprouts Farmers Market in a research note on Wednesday, June 24th. Seven investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Sprouts Farmers Market currently has a consensus rating of “Hold” and a consensus target price of $96.62.

Get Our Latest Report on Sprouts Farmers Market

Sprouts Farmers Market Stock Down 1.0% Shares of NASDAQ SFM opened at $73.94 on Thursday. The firm’s 50-day simple moving average is $82.90 and its 200 day simple moving average is $78.00. The company has a market cap of $6.95 billion, a price-to-earnings ratio of 14.22, a price-to-earnings-growth ratio of 1.58 and a beta of 0.67. Sprouts Farmers Market, Inc. has a 12-month low of $64.75 and a 12-month high of $165.97. The company has a quick ratio of 0.42, a current ratio of 0.92 and a debt-to-equity ratio of 0.07.

Sprouts Farmers Market (NASDAQ:SFM – Get Free Report) last announced its quarterly earnings data on Wednesday, April 29th. The company reported $1.71 earnings per share for the quarter, beating the consensus estimate of $1.67 by $0.04. The business had revenue of $2.33 billion for the quarter, compared to analyst estimates of $2.32 billion. Sprouts Farmers Market had a net margin of 5.70% and a return on equity of 36.06%. Sprouts Farmers Market’s revenue was up 4.1% compared to the same quarter last year. During the same period in the prior year, the business posted $1.81 earnings per share. Sprouts Farmers Market has set its FY 2026 guidance at 5.320-5.480 EPS and its Q2 2026 guidance at 1.320-1.360 EPS. On average, research analysts expect that Sprouts Farmers Market, Inc. will post 5.57 earnings per share for the current fiscal year.

Insider Activity In related news, insider Brandon F. Lombardi sold 406 shares of Sprouts Farmers Market stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $82.04, for a total value of $33,308.24. Following the sale, the insider owned 6,801 shares of the company’s stock, valued at approximately $557,954.04. This trade represents a 5.63% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Jack Sinclair sold 10,788 shares of the business’s stock in a transaction that occurred on Tuesday, July 7th. The shares were sold at an average price of $84.87, for a total value of $915,577.56. Following the completion of the sale, the chief executive officer owned 269,980 shares in the company, valued at $22,913,202.60. The trade was a 3.84% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 45,310 shares of company stock worth $3,873,881 over the last three months. Corporate insiders own 1.30% of the company’s stock.

Sprouts Farmers Market Company Profile (Free Report)

Sprouts Farmers Market, Inc (NASDAQ: SFM) is a specialty grocery retailer focused on fresh, natural and organic foods. Headquartered in Phoenix, Arizona, the company operates stores designed to offer an open-market shopping experience, emphasizing quality produce sourced from regional farmers alongside organic pantry staples, dairy, meat and seafood. Sprouts’ product assortment also includes bulk foods, vitamins and supplements, a deli and prepared foods, reflecting its commitment to wellness and affordable healthy living.

Founded in 2002 by members of the Boney family, Sprouts began as a single farmers market in Chandler, Arizona.

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Posted by Defense World Staff on Jul 20th, 2026

Boston Common Asset Management LLC lifted its stake in Sprouts Farmers Market, Inc. (NASDAQ:SFM – Free Report) by 61.9% during the first quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 80,634 shares of the company’s stock after acquiring an additional 30,835 shares during the quarter. Boston Common Asset Management LLC owned approximately 0.09% of Sprouts Farmers Market worth $6,219,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also bought and sold shares of the company. Focus Partners Wealth acquired a new position in shares of Sprouts Farmers Market during the 1st quarter worth approximately $400,000. Baird Financial Group Inc. boosted its holdings in shares of Sprouts Farmers Market by 77.7% in the 2nd quarter. Baird Financial Group Inc. now owns 3,509 shares of the company’s stock valued at $578,000 after buying an additional 1,534 shares during the last quarter. Cerity Partners LLC boosted its holdings in shares of Sprouts Farmers Market by 13.1% in the 2nd quarter. Cerity Partners LLC now owns 22,554 shares of the company’s stock valued at $3,713,000 after buying an additional 2,609 shares during the last quarter. Daiwa Securities Group Inc. boosted its holdings in shares of Sprouts Farmers Market by 12.0% in the 2nd quarter. Daiwa Securities Group Inc. now owns 22,882 shares of the company’s stock valued at $3,767,000 after buying an additional 2,460 shares during the last quarter. Finally, NewEdge Advisors LLC grew its stake in shares of Sprouts Farmers Market by 64.0% in the second quarter. NewEdge Advisors LLC now owns 11,513 shares of the company’s stock valued at $1,896,000 after buying an additional 4,492 shares in the last quarter.

Analyst Upgrades and Downgrades A number of equities analysts recently weighed in on the stock. JPMorgan Chase & Co. boosted their target price on shares of Sprouts Farmers Market from $77.00 to $78.00 and gave the stock a “neutral” rating in a report on Thursday, April 30th. Melius Research cut shares of Sprouts Farmers Market from a “hold” rating to a “sell” rating and set a $70.00 price target for the company. in a research note on Monday, April 6th. Royal Bank Of Canada reissued an “outperform” rating and issued a $114.00 price objective on shares of Sprouts Farmers Market in a research report on Monday, June 1st. Weiss Ratings restated a “hold (c)” rating on shares of Sprouts Farmers Market in a research note on Wednesday, June 24th. Finally, Evercore reaffirmed an “outperform” rating on shares of Sprouts Farmers Market in a report on Thursday, April 30th. Seven research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, Sprouts Farmers Market has an average rating of “Hold” and an average target price of $96.08.

Get Our Latest Research Report on SFM

Sprouts Farmers Market Stock Performance Shares of NASDAQ SFM opened at $75.78 on Monday. The company has a current ratio of 0.92, a quick ratio of 0.42 and a debt-to-equity ratio of 0.07. The company has a market capitalization of $7.13 billion, a P/E ratio of 14.57, a P/E/G ratio of 1.60 and a beta of 0.67. Sprouts Farmers Market, Inc. has a 12 month low of $64.75 and a 12 month high of $170.49. The stock has a 50 day moving average of $83.57 and a 200-day moving average of $78.12.

Sprouts Farmers Market (NASDAQ:SFM – Get Free Report) last posted its quarterly earnings results on Wednesday, April 29th. The company reported $1.71 earnings per share for the quarter, beating analysts’ consensus estimates of $1.67 by $0.04. Sprouts Farmers Market had a return on equity of 36.06% and a net margin of 5.70%.The business had revenue of $2.33 billion for the quarter, compared to analysts’ expectations of $2.32 billion. During the same quarter in the prior year, the business earned $1.81 EPS. The firm’s revenue for the quarter was up 4.1% on a year-over-year basis. Sprouts Farmers Market has set its FY 2026 guidance at 5.320-5.480 EPS and its Q2 2026 guidance at 1.320-1.360 EPS. As a group, equities research analysts predict that Sprouts Farmers Market, Inc. will post 5.57 EPS for the current year.

Insider Buying and Selling at Sprouts Farmers Market In other news, insider Brandon F. Lombardi sold 406 shares of the firm’s stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $82.04, for a total transaction of $33,308.24. Following the completion of the sale, the insider owned 6,801 shares in the company, valued at approximately $557,954.04. This trade represents a 5.63% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, COO Nicholas Konat sold 12,538 shares of Sprouts Farmers Market stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $87.90, for a total transaction of $1,102,090.20. Following the sale, the chief operating officer directly owned 66,119 shares of the company’s stock, valued at $5,811,860.10. The trade was a 15.94% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 45,310 shares of company stock worth $3,873,881 over the last ninety days. Insiders own 1.30% of the company’s stock.

Sprouts Farmers Market Profile (Free Report)

Sprouts Farmers Market, Inc (NASDAQ: SFM) is a specialty grocery retailer focused on fresh, natural and organic foods. Headquartered in Phoenix, Arizona, the company operates stores designed to offer an open-market shopping experience, emphasizing quality produce sourced from regional farmers alongside organic pantry staples, dairy, meat and seafood. Sprouts’ product assortment also includes bulk foods, vitamins and supplements, a deli and prepared foods, reflecting its commitment to wellness and affordable healthy living.

Founded in 2002 by members of the Boney family, Sprouts began as a single farmers market in Chandler, Arizona.

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Sprouts Farmers (SFM - Free Report) ended the recent trading session at $75.35, demonstrating a -5.42% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.38%. Elsewhere, the Dow gained 0.02%, while the tech-heavy Nasdaq added 0.9%.

The natural and organic food retailer's stock has dropped by 6.7% in the past month, falling short of the Retail-Wholesale sector's gain of 0.77% and the S&P 500's gain of 1.27%.

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 29, 2026. The company is forecasted to report an EPS of $1.35, showcasing no movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $2.33 billion, up 4.91% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $5.57 per share and a revenue of $9.51 billion, demonstrating changes of +4.9% and +8.04%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for Sprouts Farmers. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Sprouts Farmers is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Sprouts Farmers is holding a Forward P/E ratio of 14.3. This signifies a discount in comparison to the average Forward P/E of 15.49 for its industry.

It's also important to note that SFM currently trades at a PEG ratio of 1.68. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Food - Natural Foods Products industry stood at 1.55 at the close of the market yesterday.

The Food - Natural Foods Products industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 44% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Sprouts Farmers (SFM - Free Report) Sprouts Farmers Market, Inc. operates a specialty grocery chain focused on fresh, natural and organic foods, with an open layout and fresh produce at the center of the store. The company emphasizes attribute-driven products, including organic, plant-based and gluten-free items, and uses a curated assortment that mixes everyday wellness staples with new and emerging brands.

SFM is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 14.43; value investors should take notice.

One analyst revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.01 to $5.57 per share. SFM also boasts an average earnings surprise of +5%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, SFM should be on investors' short list.

HomeStock IdeasLong IdeasConsumer Staples Analysis

SummarySprouts Farmers Market is a high-quality specialty grocer with double-digit revenue growth, industry-leading margins, and disciplined capital allocation.SFM operates more like a growth retailer than a conventional supermarket, achieving 39% gross margins and a 31% EPS CAGR over three years.Despite a premium valuation (17x trailing earnings), SFM's PEG ratio of ~1.0 reflects earnings growth that justifies its multiple.I assign SFM a modest Buy rating, favoring dollar-cost averaging due to strong fundamentals but limited margin of safety at current prices. Antonio_Diaz/iStock via Getty Images

Company Overview Sprouts Farmers Market (SFM) is a specialty grocery chain focused on fresh produce, natural and organic foods, and other health-oriented products. Under Peter Lynch's classification in One Up on Wall Street

1.05K Followers

Analyst’s Disclosure: I/we have a beneficial long position in the shares of SFM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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PHOENIX--(BUSINESS WIRE)--Sprouts Farmers Market, Inc. (Nasdaq: SFM) today announced it will issue financial results for the second quarter ended June 28, 2026 after the market closes on Wednesday, July 29, 2026. Following the release, Sprouts’ management will conduct a conference call at 5:00 p.m. ET to discuss the results for the quarter.

A webcast of the conference call will be available at investors.sprouts.com. Participants should register on the website approximately ten minutes prior to the start of the webcast.

A webcast replay will be available at approximately 8:00 p.m. ET on July 29, 2026. This can be accessed with the following link.

About Sprouts Farmers Market

Sprouts Farmers Market is one of the largest and fastest growing specialty retailers of fresh, natural and organic food in the United States. Sprouts helps people live and eat better with fresh produce at the heart of the store and delicious discoveries for every dietary lifestyle. Always foraging for what’s fresh and innovative, Sprouts offers a carefully curated assortment of products that inspire wellness naturally, including organic, gluten-free, plant-based and non-GMO favorites. Headquartered in Phoenix, AZ, Sprouts employs more than 36,000 team members and operates more than 485 stores in 25 states nationwide. To learn more about Sprouts and the role it plays in its communities, visit sprouts.com/about/.

More News From Sprouts Farmers Market

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In the latest trading session, Sprouts Farmers (SFM - Free Report) closed at $85.38, marking a +1.03% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.1%. Meanwhile, the Dow experienced a rise of 0.35%, and the technology-dominated Nasdaq saw a decrease of 0.43%.

The natural and organic food retailer's stock has dropped by 1.31% in the past month, exceeding the Retail-Wholesale sector's loss of 6.49% and the S&P 500's loss of 1.34%.

The upcoming earnings release of Sprouts Farmers will be of great interest to investors. On that day, Sprouts Farmers is projected to report earnings of $1.35 per share, which would represent no growth from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.33 billion, up 4.91% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $5.57 per share and revenue of $9.51 billion, which would represent changes of +4.9% and +8.04%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Sprouts Farmers. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Sprouts Farmers currently has a Zacks Rank of #3 (Hold).

In the context of valuation, Sprouts Farmers is at present trading with a Forward P/E ratio of 15.17. This denotes a discount relative to the industry average Forward P/E of 15.25.

Also, we should mention that SFM has a PEG ratio of 1.79. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Food - Natural Foods Products was holding an average PEG ratio of 1.71 at yesterday's closing price.

The Food - Natural Foods Products industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 216, this industry ranks in the bottom 12% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Sprouts Farmers (SFM - Free Report) Sprouts Farmers Market, Inc. operates a specialty grocery chain focused on fresh, natural and organic foods, with an open layout and fresh produce at the center of the store. The company emphasizes attribute-driven products, including organic, plant-based and gluten-free items, and uses a curated assortment that mixes everyday wellness staples with new and emerging brands.

SFM is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 14.45; value investors should take notice.

Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.04 to $5.57 per share. SFM also boasts an average earnings surprise of +5%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, SFM should be on investors' short list.

Key Takeaways Sprouts Farmers topped Q1 sales and EPS estimates, aided by strong new-store productivity.SFM comps fell 1.7%, but e-commerce rose 10% to nearly 16% of sales; private label topped 26%.Sprouts Farmers opened six stores, entered New York, plans 40 in 2026, and raised EPS outlook. Sprouts Farmers Market, Inc. (SFM - Free Report) reported first-quarter 2026 results, wherein both top and bottom lines beat the Zacks Consensus Estimate. The company benefited from solid new-store productivity, continued strength in private-label offerings and growth in e-commerce sales despite a challenging consumer backdrop and tough year-over-year comparisons.

SFM’s Sales Mix Leans on Digital and New StoresSprouts Farmers reported quarterly earnings of $1.71 per share, surpassing the Zacks Consensus Estimate of $1.67. The bottom line rose from $1.81 in the same period last year.

Net sales of this Phoenix, AZ-based natural and organic grocery retailer were $2,329.2 million, coming marginally ahead of the Zacks Consensus Estimate of $2,326 million. The figure increased 4% year over year, driven by strong new-store contributions, partially offset by lower comparable-store sales.

Comparable store sales declined 1.7% during the quarter, reflecting tough comparisons and a cautious consumer environment. Traffic remained soft, while basket size was modestly positive. We had expected a 2.3% decline in comparable store sales.

E-commerce sales rose 10% and accounted for nearly 16% of total sales, highlighting continued omnichannel momentum. Sprouts’ private-label products also remained a key growth driver, contributing more than 26% of total sales.

Sprouts Farmers leaned into its differentiation playbook, highlighting a robust pipeline of emerging brands and a fast-scaling loyalty program. Management said that it has already launched 1,500 new items this year, reinforcing the chain’s role as a preferred launch partner for health-and-wellness innovation.

Taking a Sneak Peek Into SFM’s MarginsGross profit increased to $917.3 million from $886.4 million in the year-ago quarter. However, the gross margin contracted 20 basis points to 39.4%, mainly due to loyalty program investments and higher shrink, partially offset by benefits from self-distribution initiatives. We had expected gross margin expansion of 60 basis points.

Operating income came in at $215.3 million, down from $226.3 million last year, while operating margin declined to 9.2% from 10.1% in the prior-year period, in line with our expectations.

SG&A expenses increased 5.7% year over year to $658.8 million. As a percentage of net sales, the metric deleveraged 42 basis points to 28.3% owing to fixed-cost deleverage from lower comparable-store sales, partially offset by cost discipline.

Sprouts Farmers’ Store UpdateSprouts Farmers opened six new stores during the quarter, ending with 483 stores across 25 states, including entry into New York. Management highlighted strong performance from newer stores and a robust pipeline, with plans to open 40-plus new stores in 2026.

The company also made progress in its supply-chain transformation, with self-distribution of meat nearly complete, which is expected to support margins over time.

Sprouts Farmers Keeps Balance Sheet FlexibleSprouts Farmers’ cash generation continued to support self-funded growth and shareholder returns. Operating cash flow was $235.3 million in the quarter, funding $98 million of capital expenditures (net of landlord reimbursement) while still allowing meaningful buybacks.

The company repurchased 1.9 million shares for $140 million (excluding excise tax) and ended the quarter with $252.2 million in cash and cash equivalents. Sprouts Farmers had no balance on its $600 million revolving credit facility, while long-term debt and other finance obligations stood at $97 million.

SFM Raises 2026 Earnings View, Maintains Sales OutlookManagement maintained its full-year 2026 outlook on a 52-week basis, calling for net sales growth of 4.5% to 6.5% and comparable-store sales between down 1% and up 1%. Earnings before interest and taxes are still expected between $675 million and $695 million, while capital expenditures (net of landlord reimbursements) are projected within $280 million to $310 million.

This Zacks Rank #3 (Hold) company now anticipates full-year earnings between $5.32 and $5.48 per share, up from the prior guided range of $5.28-$5.44, and assumes at least $300 million in share repurchases. For second-quarter 2026, SFM expects comparable store sales in the range of down 2% to flat. Management guided earnings in the band of $1.32-$1.36 per share for the quarter.

Management also reiterated that 2026 will be a 53-week year, with the extra week expected to add about $200 million in sales and 21 cents to earnings per share.

Final Take on SFMSprouts Farmers delivered a modest earnings beat in the first quarter, navigating a challenging macro environment and tough comparisons. While near-term pressures persist, particularly on comparable store sales and margins, the company’s strong innovation pipeline, expanding store base and improving operational initiatives position it well for gradual recovery through 2026.

Shares of Sprouts Farmers have risen 6.4% over the past three months against the industry’s decline of 4%.

Stocks Looking Red HotWalmart Inc. (WMT - Free Report) , an omnichannel retailer, currently carries a Zacks Rank #2 (Buy). WMT has a trailing four-quarter earnings surprise of 0.8%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Walmart’s current financial-year sales and EPS calls for growth of 5% and 9.5%, respectively, from the year-ago reported numbers.

Post Holdings, Inc. (POST - Free Report) , a consumer-packaged goods holding company, currently carries a Zacks Rank #2. POST has a trailing four-quarter earnings surprise of 19.6%, on average.

The Zacks Consensus Estimate for Post Holdings’ current financial-year sales and EPS suggests growth of 2.7% and 0.1%, respectively, from the year-ago reported numbers.

Casey's General Stores, Inc. (CASY - Free Report) , a leading convenience store chain in the United States, currently carries a Zacks Rank #2. CASY has a trailing four-quarter earnings surprise of 20%, on average.

The Zacks Consensus Estimate for Casey's current financial-year sales and EPS indicates growth of 8.2% and 24%, respectively, from the year-ago reported numbers.

Sprouts' growth is set to accelerate in the second half of 2026. Management sees a path to over 1,000 stores, up from less than 500 today.

Sprouts Farmers Market is now a value-driven opportunity after a ~50% decline, with risks largely priced in. SFM maintains FY26 guidance: 5.5% revenue growth, flat comps, $675–$695M EBIT, and raised EPS to $5.32–$5.48. Valuation is compelling at 14.8x FY26 P/E and 10.7x EV/EBIT, a significant discount to the S&P 500.

Sprouts Farmers Market, Inc. (SFM) Presents at 21st Annual Global Farm to Market Conference Transcript