SPROUTS FARMERS MARKET INC (NASDAQ:SFM) – A Strong Growth Stock Meeting Minervini’s Criteria

SPROUTS FARMERS MARKET INC (NASDAQ:SFM) has been identified as a high-growth momentum stock that aligns with Mark Minervini’s Trend Template. The company operates healthy grocery stores, focusing on organic and natural products, and has demonstrated strong technical and fundamental performance.

Why SFM Fits the Minervini Trend Template

Minervini’s strategy focuses on stocks in strong uptrends with improving fundamentals. SFM meets all key technical criteria:

• Price Above Key Moving Averages:

  • Current price ($166.47) is above the 50-day ($165.33), 150-day ($153.27), and 200-day SMA ($144.10).
  • The 50-day SMA is above both the 150-day and 200-day SMA, confirming bullish momentum.

• Upward-Trending Moving Averages:

  • The 150-day and 200-day SMAs are rising, indicating sustained long-term strength.

• Strong Relative Strength:

  • SFM has a ChartMill Relative Strength (CRS) score of 94.75, meaning it outperforms nearly 95% of stocks.

• Price Near 52-Week High:

  • The stock is within 8.5% of its 52-week high ($182.00) and 110% above its 52-week low ($79.34).

High Growth Fundamentals

Beyond technical strength, SFM exhibits strong growth metrics:

• Earnings Growth:

  • EPS (TTM) grew 49.8% YoY.
  • Quarterly EPS growth accelerated to 61.6% in the most recent quarter.
  • Analysts have raised next-year EPS estimates by 19.6% over the past three months.

• Revenue Growth:

  • Revenue (TTM) increased 15.5% YoY.
  • Quarterly sales growth was 18.7%, showing consistent expansion.

• Profit Margins Expanding:

  • Profit margin improved to 8.05% in the latest quarter, up from 3.99% a year ago.

• Free Cash Flow Growth:

  • Free cash flow per share surged 91.1% YoY, indicating strong financial health.

Technical Outlook

According to ChartMill’s technical report, SFM has a perfect 10/10 technical rating, with both short-term and long-term trends positive. The stock is trading near the upper end of its recent range, though the setup quality is currently 6/10, suggesting waiting for a consolidation before entry.

Key support levels are at $157.56 (combination of trendlines and moving averages) and resistance near $177.12-$179.54.

For a deeper analysis, review the full technical report here.

Our High Growth Momentum + Trend Template screener lists more stocks meeting these criteria.

Disclaimer

This is not investing advice. Always conduct your own research before making investment decisions.