Why Sprouts Farmers Market Stock Rocketed Higher This Week
Shares of Sprouts Farmers Market (NASDAQ: SFM) shot up as much as 18.7% this week, according to data from S&P Global Market Intelligence. The health grocery chain reported earnings for the second quarter of 2024 that beat Wall Street's expectations. Up over 100% this year, the stock is crushing the broad market indices, and it's up close to 500% in the last five years.
As of the market close on Thursday, Aug. 1, the stock is up 16.2% since Friday's close. Here's why shares of Sprouts Farmers Market popped once again this week.
In Q2 2024, Sprouts Farmers Market posted revenue growth of 12% year over year. This was driven by opening new stores and comparable sales growth -- growth from existing store locations -- of 6.7%. 6.7% is a huge acceleration from prior quarters, and it's the best comparable sales figure Sprouts has put up since the COVID-19 pandemic era. Accelerating comparable sales growth likely pleased Wall Street, sending the stock ripping higher this week and over $100 a share.
Source Fool.com
