Comparing Wall Street’s outlook on SFM with its peers
In this article, we’ll look at Wall Street’s recommendations for Sprouts Farmers Market (SFM). SFM is covered by 21 analysts, who have jointly rated the company 2.2 on a scale of 1.0 (strong buy) to 5.0 (sell).
The company has a better rating than the other main food retail players. Kroger (KR), Walmart (WMT), Whole Foods Market (WFM), and SuperValu (SVU) are rated 2.6, 2.6, 3.0, and 2.6, respectively. Sprouts Farmers Market’s ratings reflect its steady same-store sales performance, healthy margins, and strong earnings potential.
Sprouts Farmers Market received a higher percentage of “buy” ratings than most of its food retail peers. According to the latest data compiled by Thomson Reuters, 52% of the analysts recommend buying SFM. This compares to 36%, 38%, and 13% “buy” recommendations for Kroger, Walmart, and Whole Foods, respectively.
The company is suggested as a “hold” by 48% of the analysts, while none of them recommend selling the stock. In comparison, Kroger, Walmart, and Whole Foods have been recommended as a “sell” by 8%, 9%, and 4% of the analysts, respectively.
Loop Capital, Gordon Haskett, and Morgan Stanley are among the brokers who recommend holding SFM, while Barclays and Jefferies have suggested buying it. In the next section, we’ll explore recent analyst revisions on SFM.
Investors seeking broad-based exposure to SFM can consider the First Trust Consumer Staples AlphaDEX ETF (FXG). SFM comprises approximately 3% of FXG’s holdings.