SG Should I Buy
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$
0.000
0.000(0.000%)
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Sweetgreen Inc (SG) is not a strong buy for a beginner investor with a long-term strategy at this time. The stock is currently in a bearish trend with weak technical indicators, mixed analyst ratings, and no significant positive catalysts. While the company has shown improvement in net income and EPS, revenue and gross margin have declined, signaling ongoing challenges. Given the lack of strong upward momentum and the absence of Intellectia Proprietary Trading Signals, holding off on investing in this stock for now is recommended.
The stock is in a bearish trend with the MACD histogram at -0.142 (negatively expanding), RSI at 19.797 (indicating oversold conditions), and bearish moving averages (SMA_200 > SMA_20 > SMA_5). Key support is at $5.243, and resistance is at $6.411. The stock is trading below its pivot level of $5.827, indicating downward pressure.
The company's net income improved significantly YoY (+73.65%), and EPS also increased by 72.22% YoY, indicating some progress in financial performance.
Revenue declined by -0.60% YoY, and gross margin dropped significantly by -36.84% YoY. Analysts have mixed to negative views, with several downgrades and reduced price targets. The stock is projected to decline further in the short term based on candlestick pattern analysis.
In Q3 2025, Sweetgreen reported a revenue decline to $172.39M (-0.60% YoY), while net income improved to -$36.15M (+73.65% YoY). EPS increased to -0.31 (+72.22% YoY), but gross margin dropped to 12.05% (-36.84% YoY), indicating ongoing profitability challenges.
Analyst sentiment is mixed to negative. Goldman Sachs maintains a Sell rating with a price target of $5.60. Morgan Stanley and Barclays have Equal Weight ratings with price targets of $9 and $7, respectively. UBS downgraded the stock to Neutral with a $7.50 price target, citing near-term pressures. Wells Fargo also downgraded the stock to Equal Weight with a $7 price target, citing fundamental challenges in 2026.
