Jim Cramer - Mad Money Sprouts Farmers Market, Inc. SFM-Q BUY Sep 04, 2024

They're good at what they do, overcoming his concerns of food inflation. It has pulled back to a good price at 12x PE.

It's profitable, has a new and better management team, is growing and yet sells at only 18x PE.

Excellent company. Would recommend buying. 

SFM has had a nice run, up 66% year-to-date and 113% on a one-year basis. Forward estimates are calling for high single-digit to low double-digit growth on both sales and earnings, and its free cash flow is strong. Profit margins are stable, and its forward P/E of 25X is somewhat high, but it has been beating earnings estimates nicely over the past few years. We continue to like its momentum, but given its multiple expansion, we might expect a pullback or consolidation at some point.
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It's -19% in the last week, mostly after strong numbers last Thursday and analysts raised estimates. But their full-year forecast was low, suggesting slowing growth this year. Also, this momentum stock went up too fast.