Company Profile:

Sprouts Farmers Market, Inc., a healthy grocery store, provides fresh, natural, and organic food products in the United States. Its stores offer fresh produce, bulk foods, vitamins and supplements, packaged groceries, meat and seafood, baked goods, dairy products, frozen foods, beer and wine, natural body care and household items. As of May 02, 2019, it operated 320 stores in 19 states. Sprouts Farmers Market, Inc. was founded in 2002 and is based in Phoenix, Arizona.

Recent News:

On Nov. 18, 2019, the company announced the addition of Joel Anderson to its board of directors. Anderson currently serves as president, chief executive officer and a director of Five Below, Inc. (FIVE), a leading high-growth value retailer offering trend-right, high-quality products.

The company reported net sales for the third quarter of 2019 were $1.4 billion, an 8% increase compared to the same period in 2018. Gross profit for the quarter increased 8% to $477 million.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

SFM’s strengths can be seen in its strong growth compared with its peers. Its revenue has increased over recently several years. Technical indicators signal the bullish signs, as there is a bullish crossover in Stochastic oscillator, MACD is trying to cross back up and the RSI stands at 56.06 with positive bias. We rate Sprouts Farmers Market Inc. (SFM) a STRONG BUY.