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Vital Farms (VITL) Rises Yet Lags Behind Market: Some Facts Worth Knowing

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Vital Farms (VITL - Free Report) closed at $40.35 in the latest trading session, marking a +0.2% move from the prior day. This move lagged the S&P 500's daily gain of 0.4%. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq gained 0.63%.

Coming into today, shares of the company had gained 23.83% in the past month. In that same time, the Consumer Staples sector lost 2.13%, while the S&P 500 gained 3.76%.

Analysts and investors alike will be keeping a close eye on the performance of Vital Farms in its upcoming earnings disclosure. The company is expected to report EPS of $0.14, up 40% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $142 million, up 28.59% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $1.11 per share and a revenue of $595.7 million, demonstrating changes of +88.14% and +26.25%, respectively, from the preceding year.

It is also important to note the recent changes to analyst estimates for Vital Farms. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Vital Farms is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Vital Farms has a Forward P/E ratio of 36.44 right now. This indicates a premium in contrast to its industry's Forward P/E of 17.96.

The Food - Miscellaneous industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 147, this industry ranks in the bottom 42% of all industries, numbering over 250.

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

To follow VITL in the coming trading sessions, be sure to utilize Zacks.com.


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