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Sweetgreen, Inc. Anticipates Earnings Release Amid Market Trends

Sweetgreen, Inc. sees a positive outlook with upcoming earnings expected to show a rise in EPS despite recent stock declines. Investors will focus on the company’s performance relative to the Retail-Wholesale sector.

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AI Rating:   6

Sweetgreen, Inc. (SG) has displayed mixed performance recently, with its stock showing a swing of +1.86% during the last trading session. However, it has decreased by 7.67% over the past month, which is notably lower than the Retail-Wholesale sector's gain of 9.25% and the S&P 500's gain of 4.86%. This discrepancy may raise some concerns among investors as it indicates potential weaknesses against the industry and market benchmarks.

In the upcoming earnings release, Sweetgreen is projected to report an EPS of -$0.16, reflecting a 27.27% improvement compared to the same quarter last year. This is an encouraging sign as it suggests a potential trajectory towards profitability, even though the EPS remains negative. Furthermore, quarterly revenue is expected to be $174.92 million, representing a 14.01% increase from the prior year, indicating solid growth potential moving forward.

For the fiscal year, the Zacks Consensus Estimates predict an EPS of -$0.75 and a revenue of $678.12 million, which corresponds to changes of +22.68% for EPS and +16.11% for revenue from the previous year. The anticipated revenue growth aligns with trends observed in the broader Retail-Wholesale sector, suggesting that Sweetgreen could capitalize on favorable market conditions.

It is also noted that analysts have maintained a Zacks Rank of #3 (Hold), which indicates a neutral outlook. A stable rating without changes in the EPS consensus could reflect market uncertainty, although it also suggests a lack of significant downside risk in the near term.

The Retail - Restaurants industry, part of the Retail-Wholesale sector, currently ranks at 156 in the Zacks Industry Rank, placing it within the bottom 39% of over 250 industries. This ranking and the stagnant analyst estimates could influence investor sentiment and stock price performance going forward.

Stocks:  SG