DASH - Sprouts Farmers Market: Fairly Re-Rated After A Spectacular Run

2024-01-30 17:37:09 ET

Summary

• Sprouts Farmers Market, Inc. has seen a 60% increase in its stock price over the past year, largely due to a re-rating of its valuation.
• The company has experienced strong growth in the fresh, natural, and organic food categories.
• Despite solid earnings growth and a strong balance sheet, competition and reduced prospects for consolidation make Sprouts Farmers Market stock interesting to take some profits.

In January of last year, I believed that it was time to shop in the case of Sprouts Farmers Market, Inc. ( SFM ), as mentioned in an article sent to my Investing Group subscribers. Solid top line sales growth, improving margins, and buybacks all aided in growing earnings per share, while the valuation itself had contracted a lot. ...

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