If You Invested $1000 in Sprouts Farmers a Decade Ago, This is How Much It'd Be Worth Now

How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.What if you'd invested in Sprouts Farmers (SFM) ten years ago? It may not have been easy to hold on to SFM for all that time, but if you did, how much would your investment be worth today?Sprouts Farmers' Business In-DepthWith that in mind, let's take a look at Sprouts Farmers' main business drivers. Sprouts Farmers Market, Inc., which operates in a highly fragmented grocery store industry, has a unique model that features fresh produce, foods section, and a vitamin department focused on overall wellness. Moreover, the company has been diversifying its offerings to meet changing preferences of consumers, who are looking for more health and wellness products. These products are generally plant-based, gluten-free, keto-friendly, and grass-fed. The company has been focusing on natural and organic food, which is one of the fastest growing segments in the industry.This Phoenix, AZ-based company is an everyday healthy grocery store. As of Sept. 29, 2024, the company operates about 428 stores in 23 states. The company classifies products into perishable and non-perishable categories. While perishable product categories (57.3% of 2023 sales mix) include produce, meat, seafood, deli, bakery, floral and dairy and dairy alternatives; non-perishable product categories (42.7% of 2023 sales mix) include grocery, vitamins and supplements, bulk items, frozen foods, beer and wine, and natural health and body care.KeHE Distributors is the company’s main supplier of dry grocery and frozen food products, and accounts for approximately 47% of total purchases in fiscal 2023. Another 3% of total purchases in fiscal 2023, were made through secondary supplier, United Natural Foods Inc. Primary supplier of meat and seafood accounted for approximately 14% of total purchases.The company's stores are generally located in a variety of mid-sized and larger shopping centers, lifestyle centers and in certain cases, independent single-unit, stand-alone developments.Bottom LineAnyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Sprouts Farmers a decade ago, you're probably feeling pretty good about your investment today.According to our calculations, a $1000 investment made in November 2014 would be worth $4,856.05, or a gain of 385.61%, as of November 13, 2024, and this return excludes dividends but includes price increases.Compare this to the S&P 500's rally of 193.58% and gold's return of 114.96% over the same time frame.Analysts are anticipating more upside for SFM. Shares of Sprouts Farmers have increased and outperformed the industry in the past three months. The company’s focus on product innovation, emphasis on e-commerce, expansion of private label offerings and targeted marketing with everyday great pricing bodes well. It has been lowering operational complexity, optimizing production, improving in-stock position and updating to smaller format stores. These efforts helped post better-than-expected third-quarter 2024 results, wherein both the top and the bottom lines grew year over year. Buoyed by the performance, the company provided a decent 2024 guidance. It now anticipates a 7% year-over-year increase in comparable store sales for the year, contributing to an expected net sales growth of 12%. However, operating margin remains an area to watch, with challenges expected in the SG&A domain. The stock is up 24.99% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 6 higher, for fiscal 2024. The consensus estimate has moved up as well.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.7% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sprouts Farmers Market, Inc. (SFM): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks