One of the CNBC'ers shouted out Sprouts Farmers Market as a last trade! It just never seems to break out!! This Stock Gives You Growth and Value in an Unexpected Place It isn't a fast-growing market, but this company has a unique concept and major plans for expansion. Jun 22, 2021 at 11:44AM Grocery stores are a fairly steady but low-growth industry. Historical supermarket sales back this up, growing at a meager 0.5% annually from 2016 to 2021. This stat may keep growth-oriented investors away from the grocery space, but fear not, there is an under-the-radar opportunity within this market. Enter Sprouts Farmers Market (NASDAQ:SFM), a grocery stock that can give you both growth and value. Image source: Getty Images. What is Sprouts Farmers Market? Sprouts Farmers Market (or just Sprouts) is a health-focused supermarket headquartered in Phoenix, Arizona. Most of its stores are located in California, the Southwest, Texas, and the Southeast. Sprout's value proposition is selling healthy and diet-specific food at a reasonable price. Its stores have a unique layout compared to traditional grocers with an open bulk and produce section at the heart of the store. The company focuses on attracting what it calls "health enthusiasts" or people who follow specific diets like keto, plant-based, or gluten-free, with products catering to all of the popular diets. Management estimates that this limits Sprouts to only $200 billion of the $1.2 trillion in annual at-home food spend in the United States, but this is a sacrifice it is willing to make in order to differentiate the store experience from other grocers like Kroger and Wal-Mart. Consistent growth and capital returns With only 362 stores in 23 states at the end of 2020, Sprouts has tons of room for expansion. The company is opening up 20 stores this year, and from 2022 onward, management is guiding for annual store growth of 10% or more. It's currently making a big push in Florida where it just opened a new distribution center, and plans are to move up the East Coast with new stores over the next few years. The consistent store additions have brought strong financial growth too. Net sales grew from $4.67 billion to $6.47 billion between 2017 and 2020. Beyond the top line, adjusted EBIT (earnings before interest and taxes) margin has started to expand over the last few years, growing from 5.7% in the first quarter of fiscal 2019 to 7.2% in the first quarter of 2021. Some of this margin boost was likely due to the COVID-19 pandemic lockdowns, which advantaged supermarkets over restaurants, so investors should track to see whether margins can stay at this level throughout 2021 and beyond. One ding for this business was the fiscal first quarter's comparable sales, which were down 9.4% versus 2020. However, this was a tough comparison to an extra busy fiscal 2020 first quarter when panicked U.S. consumers were stocking up on food supplies at the start of the pandemic. Two-year comps were up 2.2%, a sign that existing Sprouts stores are still winning over customers. Outside of consistent growth and profits, Sprout's management continues to return cash to shareholders through share buybacks. Over the last five years, shares outstanding have gone from over 150 million down to 118 million today. And on top of previous buybacks, the company just announced a new $300 million buyback program in March. With over $250 million in cash, a profitable business, and minimal debt, this gives Sprouts a prime opportunity to take advantage of this buyback program over the next few years. Data source: Ycharts. The valuation is cheap Sprouts stock has a market cap of $3.29 billion as of this writing. The company is guiding for a range of $305 million to $325 million in adjusted EBIT (or operating income) this year. At the high end of that guidance, that would mean Sprouts trades at a forward price-to-operating-income (P/OI) ratio of just 10. This is cheap relative to most stocks on the market, especially when you consider Sprouts' plans for unit growth. If you believe store growth can bring steady top- and bottom-line expansion while management continues to reduce share count through buybacks, the current share price of about $28 will look like a bargain a few years from now. It isn't a high-growth software company, but if you like growth stocks trading at a reasonable valuation, it might be smart to take a look at Sprouts Farmers Market.
i'm not too concerned about bottlenecks as to my mind, FNKO is essentially in the business of producing collectibles. i like the stock for it's strong first quarter in both the US and EU. and the fact that my wife hasn't heard of Funko yet is usually a bullish indicator, as her demographic will likely at some point jump aboard the Funko train.
Nutanix stock pops after providing profitability targets Nutanix(NASDAQ:NTNX)shares are up 6.5% after CEO Rajiv Ramaswami's investor day presentation guided for 25% ACV billings growth through FY25 and said the company expects to be cash flow positive by the second half of calendar 2022, which corresponds to the first half of FY23. Positive operating profit is expected by the second half of FY23 or first half of FY24. Nutanix forecasts FCF of $50-150M for FY23 compared to the negative $175M estimated for the current fiscal year. Operating profit is guided at negative $50M to positive $25M for FY23 and positive $150-350M for FY25.
So the lowest has been $5.80<------ XAIRBEYOND AIR INC COM $5.93+0.83(+16.27%)Bid x Size$5.93x 500Ask x Size$5.97x 2,100 Key Statistics Shares Outstanding 21.9 M<--------Very low float Institutional Ownership 20.72% Number of Floating Shares 18.3 M Short Interest as % of Float 21.30%<--- HIGH SHORT RATIO!
Van can you tighten up that this buy was at market AND NOT OPTIONS... MY SPIDEY SENSE SAYS TO GO WITH THIS ONE.
They are a lot of reasons to like this stk. There is a filter that provides a razor blade aspect to this. Unit is much smaller than competitors, easier to lug around...