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Freshpet (FRPT) Stock Sinks As Market Gains: Here's Why

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Freshpet (FRPT - Free Report) closed the most recent trading day at $70.76, moving -1.38% from the previous trading session. This change lagged the S&P 500's 0.4% gain on the day. On the other hand, the Dow registered a gain of 0.47%, and the technology-centric Nasdaq increased by 0.24%.

Heading into today, shares of the seller of refrigerated fresh pet food had gained 5.11% over the past month, outpacing the Consumer Staples sector's loss of 0.48% and the S&P 500's gain of 4.61%.

The upcoming earnings release of Freshpet will be of great interest to investors. The company's earnings report is expected on August 4, 2025. It is anticipated that the company will report an EPS of $0.12, marking a 500% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $267.74 million, indicating a 13.81% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.23 per share and a revenue of $1.12 billion, indicating changes of +59.74% and +15.13%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Freshpet. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.87% downward. Right now, Freshpet possesses a Zacks Rank of #5 (Strong Sell).

From a valuation perspective, Freshpet is currently exchanging hands at a Forward P/E ratio of 58.12. This signifies a premium in comparison to the average Forward P/E of 16.97 for its industry.

Meanwhile, FRPT's PEG ratio is currently 1.42. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Food - Miscellaneous industry had an average PEG ratio of 1.69.

The Food - Miscellaneous industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 175, this industry ranks in the bottom 30% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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