SFM has come into contact with two historically bullish trendlines
Grocery chain Sprouts Farmers Market Inc (NASDAQ:SFM) has been chopping higher over the past year, doubling since last May and up 30% in 2025. However, last week, the Kroger (KR) rival moved back toward the $160 floor. This dip pushed SFM within one standard deviation of the historically bullish 50-day and 80-day moving averages.
Per Schaeffer’s Senior Quantitative Analyst Rocky White, SFM has made seven similar approaches to the 50-day trendline and five to the 80-day trendline over the past three years. The stock was higher one month later 71% of the time following the former signal, and 100% following the latter, averaging gains of 6.3% and 7.8%, respectively. A comparable move from SFM's current perch of $164.65 would put the shares as high as $177 by the end of June.
The stock has plenty of room for upgrades as well. Heading into today, nine of the 14 analysts in coverage sport a tepid "hold" recommendation.
Meanwhile, options are looking like an affordable way to go. This is per SFM's Schaeffer's Volatility Index (SVI) of 36%, which sits in the 23rd percentile of its annual range. Plus, the security’s Schaeffer’s Volatility Scorecard (SVS) sits at a higher 82 out of 100, meaning it has outperformed options traders' volatility expectations over the past year.