Stock market performance
Despite competitive headwinds in the retail food space, Sprouts Farmers Market (SFM) stock surged 29% during 2017. In comparison, Kroger (KR) and Supervalu’s (SVU) share prices declined 20% and 34% during the year. Sprouts Farmers Market’s strong financial results boosted its stock price. Sprouts Farmers Market recovered the losses that it incurred after Amazon acquired Whole Foods.
Sprouts Farmers Market has continued its solid performance in 2018. As of February 17, the company had YTD (year-to-date) gains of 11%. In contrast, Supervalu stock has already declined 30%, while Kroger has gained ~4% to date.
While Sprouts Farmers is trading 55% above its 52-week high price, analysts think that there’s still some upside.
According to 23 analysts covering Sprouts Farmers Market, the stock could gain another 7% and touch $28.95 in the next year.
Analysts are mainly positive about the company. Of the analysts, 61% recommend a “buy,” 35% recommend a “hold,” and 4% recommend a “sell.”
Sprouts Farmers Market stock is rated as a 2.1 on a scale of one (strong buy) to five (sell). Sprouts Farmers Market has a better rating than Kroger at 2.4, Walmart (WMT) at 2.3, and Supervalu at 2.8.
Recent rating changes
Sprouts Farmers Market was upgraded by Gordon Haskett from an “accumulate” to a “buy” rating on January 31, 2018. Analyst Chuck Grom cited strong prospects of a continued improvement in sales comps as the key catalyst for the upgrade. He also said that the company’s successful expansion in new markets was a critical factor.
Investors looking to invest in Sprouts Farmers Market through ETFs could consider the First Trust Consumer Staples AlphaDEX Fund (FXG). Sprouts Farmers Market has a weight of ~5.4% in FXG.