Schaeffer's Top Stock Picks for '25

Technical Signal Could Wilt Sprouts Farmers Market Stock

The equity just hit a record low in early February

Digital Content Manager
Mar 11, 2020 at 2:09 PM
facebook X logo linkedin


Grocery store concern Sprouts Farmers Market Inc (NASDAQ:SFM) has endured a choppy journey lower in the past 12 months, evidenced by its 26.2% year-over-year deficit and early February record low of $14.51. While the shares have since bounced from this region, the rally was short-lived, with SFM consolidating back below the $17.50 level. And to add insult to injury, this bounce put the equity right in line with a historically bearish trendline that could send SFM right back towards its February bottom. 

Specifically, the equity is now within one standard deviation of its 80-day moving average, following a lengthy period below the trendline. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, four similar moves have occurred in the past three years, with SFM lower one month later each time and averaging a negative one-month return of 6.89%. Today, SFM is off 4.6% at $15.96, and from its current perch, a similar swing could send the stock back down to its early February levels to $14.86. 

SFM March 11

Looking at analyst attention, three of the 11 analysts covering the stock consider it a "strong buy," while the rest say "hold" or worse. The consensus 12-month price target of $20.57, meanwhile, is a solid 29% premium to current levels. 

The option pits, traders have been overwhelmingly bullish. SFM sports a 10-day call/put volume ratio of 34.28 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits in the 78th percentile of its annual range, indicating an unusually large appetite for long calls of late. 

 

 
 

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?