Why Sprouts Farmers Market, Inc. (SFM) Crashed on Friday

We recently compiled a list of the 10 Stocks Record Biggest Double-Digit Drop on Friday. In this article, we are going to take a look at where Sprouts Farmers Market, Inc. (NASDAQ:SFM) stands against the other stocks.

The stock market ended the trading week in a bloodbath, with major indices registering losses amid concerns over a slowing economy and sticky inflation.

The Dow Jones fell by 1.69 percent, the S&P declined by 1.71 percent, while the tech-heavy Nasdaq nosedived by 2.20 percent.

Ten stocks mirrored a broader market decline, posting double-digit losses, with sentiment for most of the companies dampened by dismal earnings performance.

To come up with Friday’s biggest losers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

A bright, colorful display of fresh produce in a grocery store.

Sprouts Farmers Market, Inc. (NASDAQ:SFM)

Sprouts Farmers Market, Inc. (NASDAQ:SFM) fell by 15.59 percent on Friday to end at $143.32 each as investors sold off positions, shunning news of its impressive earnings performance last year.

The company’s shares traded in line with the overall market downturn, as well as the drop in the grocery stores sector which shed 2.79 percent on Friday amid inflation concerns.

In its earnings release, Sprouts Farmers Market, Inc. (NASDAQ:SFM) said it achieved a 59.2-percent higher net income in the fourth quarter of 2024 at $79.6 million versus the $50 million registered in the same period last year, with net sales increasing 17.5-percent to $1.996 billion from the $1.698 billion year-on-year.

Net income for the full year rose by 47 percent to $380 million from $258.8 million in 2023, while revenues grew by 12.9 percent to $7.7 billion from $6.8 billion.

The latest survey from the University of Michigan released Friday said that US consumer sentiment declined this February, a second straight month, amid concerns about Trump’s tariffs jacking up prices of goods.

Overall SFM ranks 7th on our list of Friday’s biggest losers. While we acknowledge the potential of SFM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as SFM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.