SFM: Adding Sprouts Farmers Market to Investing Ideas (Short Side)

09/24/21 10:31AM EDT

Hedgeye CEO Keith McCullough is adding Sprouts Farmers Market (SFM) to the short side of Investing Ideas. Below is a brief note.

One of our favorite Sector Styles, on the short side, in #Quad2 is Consumer Staples.

One of our latest SELL ideas from Consumer Staples analyst Daniel Biolsi is one of his former pandemic longs: Sprouts Farmers Market (SFM) and its tapping the top-end of its Risk Range today.

From Biolsi and Penney's Consumables Pro research product:

Growing concerns about their plans, adding to the Short List (SFM)

We are adding Sprouts Farmers Market (SFM) to our shortlist. Sprouts' two-year stacked comp was negative in Q2. Management now expects the full-year comp to decline 5-7% from -LSD% to -MSD%. Guidance implies an acceleration in comps that seems aggressive. 

Sell the green,

KM

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