SPROUTS FARMERS MARKET INC (NASDAQ:SFM) – A High-Growth Stock with Strong Technical Setup

SPROUTS FARMERS MARKET INC (NASDAQ:SFM) stands out as a compelling candidate for high-growth momentum investors, combining strong earnings momentum with a favorable technical setup. The stock meets key criteria for growth and momentum while presenting a well-defined consolidation pattern, making it worth a closer look.

Growth and Momentum Highlights

• Earnings Growth: SFM reported a 49.8% year-over-year increase in EPS (TTM), with recent quarterly EPS growth exceeding 61%.
• Sales Momentum: Revenue growth remains strong, with TTM sales up 15.5% and recent quarterly sales growth at 18.7%.
• Profit Margin Expansion: The company’s profit margin improved to 8.05% in the latest quarter, up from 3.99% a year ago.
• Analyst Confidence: EPS estimates for the next year have been revised upward by 11.3% over the past three months.
• Consistent Earnings Surprises: SFM has beaten EPS estimates in each of the last four quarters, with an average surprise of 14.6%.

Technical Strength and Setup

• Technical Rating (8/10): SFM shows a strong uptrend, outperforming 96% of stocks over the past year and ranking in the top 8% of its industry.
• Setup Quality (8/10): The stock is consolidating near support, offering a potential entry point. Key support lies at $156.98, while resistance is at $158.77.
• Relative Strength: SFM maintains a high relative strength score of 96.17, indicating strong market leadership.
• Volume and Liquidity: Average daily volume of 1.7 million shares ensures good liquidity for traders.

For a deeper technical breakdown, review the full technical report for SFM.

Our High Growth Momentum Breakout Setups Screen provides more stocks with similar characteristics, updated daily.

Disclaimer

This is not investment advice. The observations here are based on current data, but market conditions can change. Always conduct your own research before making investment decisions.