Long Position on SFM @ $29.00 on 1/19/2022 (Fundamentals)

Sprouts Farmers Market, Inc. (SFM) offers fresh, natural, and organic food products in the United States.

It operates through Healthy Grocery Stores segment.

The company offers perishable product categories, including fresh produce, meat, seafood, deli, bakery, floral and dairy, and dairy alternatives; and non-perishable product categories, such as grocery, vitamins and supplements, bulk items, frozen foods, beer and wine, and natural health and body care.

As of July 04, 2021, it operated 363 stores in 23 states. Sprouts Farmers Market, Inc. was founded in 2002 and is headquartered in Phoenix, Arizona.

Please note, this stock reports earnings on Thursday, February 3rd.

Sprouts Farmers Market reported 3rd Quarter September 2021 earnings of $0.56 per share on revenue of $1.5 billion. The consensus earnings estimate was $0.40 per share on revenue of $1.6 billion. Revenue fell 4.3% compared to the same quarter a year ago.

The company said it expects fourth quarter earnings of $0.26 to $0.30 per share on revenue of $1.45 billion to $1.475 billion. The current consensus earnings estimate is $0.35 per share on revenue of $1.50 billion for the quarter ending December 31, 2021.

With inflatation on the rise and not enough supply, food outlets like this stock should benefit from the increased prices in goods and contribute to a strong earnings report.

Entry Point: $29.00

Trading Range: $20.40 - $31.31

Stop Loss: $27.60

Target Price: $32.00

Position closed on 2/25/2022 at price of $29.50 with a 1.72% gain in 37 days.

Back to Portfolio