SPROUTS FARMERS MARKET INC (NASDAQ:SFM) – A Strong Growth Candidate 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 in the grocery retail sector with a focus on healthy, organic, and specialty foods, positioning it well for sustained growth.

Why SFM Fits the Minervini Trend Template

Minervini’s strategy emphasizes strong technical setups combined with fundamental strength. SFM meets the following key criteria:

• Price Above Key Moving Averages:

  • Current price ($165.65) is above the 50-day ($164.33), 150-day ($154.96), and 200-day ($149.05) moving averages.
  • The 200-day MA is trending upward, confirming a long-term bullish trend.

• Relative Strength:

  • SFM’s ChartMill Relative Strength (CRS) is 91.8, indicating it outperforms 92% of stocks in its sector.

• Price Near 52-Week High:

  • The stock is trading within 9% of its 52-week high ($182.00), showing strong momentum.

• Volatility Contraction Pattern (VCP):

  • The stock has consolidated between $153.35 and $173.96 recently, presenting a potential breakout opportunity.

High Growth Fundamentals

SFM’s financials support its momentum with strong earnings and revenue growth:

• Earnings Growth:

  • EPS (TTM) grew 49.8% YoY, with quarterly EPS growth at 61.6%.
  • Analysts have revised next-year EPS estimates upward by 9.2% over the past three months.

• Revenue Growth:

  • Revenue (TTM) increased 15.5% YoY, with consistent quarterly growth above 13%.
  • The company has beaten revenue estimates in all of the last four quarters.

• Profit Margins Expanding:

  • Latest quarterly profit margin improved to 8.05%, up from 3.99% a year ago.

Technical Outlook

The technical report highlights:

• Strong support near $160.56, with resistance around $177.12-$179.54.
• A potential breakout entry at $171.16, with a stop-loss below $160.56.
• The stock’s long-term and short-term trends are both positive.

For a deeper technical review, see the full SFM technical analysis report.

Our High Growth Momentum + Trend Template screener lists more stocks with similar growth and technical strength.

Disclaimer

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