Back to top

Image: Bigstock

Vital Farms (VITL) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

Vital Farms (VITL - Free Report) closed the most recent trading day at $35.13, moving +0.89% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.13%. Meanwhile, the Dow gained 0.33%, and the Nasdaq, a tech-heavy index, lost 0.39%.

Heading into today, shares of the company had gained 12.69% over the past month, outpacing the Consumer Staples sector's gain of 2.28% and the S&P 500's gain of 2.43% in that time.

Investors will be eagerly watching for the performance of Vital Farms in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.14, marking a 40% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $142 million, indicating a 28.59% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.11 per share and a revenue of $595.7 million, indicating changes of +88.14% and +26.25%, respectively, from the former year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Vital Farms. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Vital Farms boasts a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Vital Farms has a Forward P/E ratio of 31.51 right now. Its industry sports an average Forward P/E of 17.78, so one might conclude that Vital Farms is trading at a premium comparatively.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 40% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Vital Farms, Inc. (VITL) - free report >>

Published in