Sprouts Farmers Market (SFM) = AI Model Smiles on This Top Stock

Everyone has to eat...so going for a grocery store company seems like a pretty wise choice at this time given the market volatility. In this case we are going for one of the healthiest growing chains in the industry with Sprouts Farmers Market (SFM).

Over the past 5 years EPS they have impressed investors with a streak of 20 straight earnings that led to a 9X increase in the share price. The most recent 7.5% beat set off a chain reaction of higher earnings estimates for this year and next by about 10%.

Why did estimates go up more than the size of the beat? Because there is clearly earnings momentum in their business model that points to an even brighter future.

Currently this is a B rated stock overall (Buy) according to the 115 factor review of the Zen Ratings model. Don’t let that score fool you because it is in the top 10% of all the stocks analyzed. 

Even more impressive are the wide array of strong component scores: 

Top 18% Sentiment

Top 16% Momentum

Top 9% Growth

Top 8% Financials (discover why a strong Financials score is so essential) 

Top 7% AI…this generally points to it being a timely stock

Some top Wall Street analysts are also singing the praises of shares like Krisztina Katai of Deutsche Bank who recently upgraded shares to a Buy with $190 target. Even better is the $200 target from Kate McShane of Goldman Sachs.

This provides ample upside for SFM from their current perch closer to $150. Plus if their string of beat and raise earnings reports continues into the future, it's quite reasonable to see shares doubling in the next couple years. 

What To Do Next?

Find more time stock ideas with the Zen Ratings. Like all the Daily Upgrades/Downgrades. 

Note that Sprouts Farmers Market (SFM) is also one of the many attractive stocks found in my Zen Investor portfolio.

That is where I harness the power of the Zen Ratings model, along with my 40+ years of investment experience, to find more stocks with 100%+ upside potential. 

If that sounds appealing to you, then please click below to…

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Wishing you a world of investment success!

Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)

Editor-in-Chief of WallStreetZen

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