In the latest close session, Vital Farms (VITL) was down 4.44% at $38.13. At the same time, the Dow added 0.47%, and the tech-heavy Nasdaq lost 0.16%.
The company's shares have seen a decrease of 9.99% over the last month, not keeping up with the Consumer Staples sector's loss of 0.23% and the S&P 500's gain of 1.16%.
The investment community will be paying close attention to the earnings performance of Vital Farms in its upcoming release. On that day, Vital Farms is projected to report earnings of $0.29 per share, which would represent year-over-year growth of 81.25%. At the same time, our most recent consensus estimate is projecting a revenue of $191.08 million, reflecting a 31.78% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.37 per share and revenue of $771.25 million. These totals would mark changes of +16.1% and +27.2%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Vital Farms. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.78% increase. Right now, Vital Farms possesses a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Vital Farms is holding a Forward P/E ratio of 29.04. This valuation marks a premium compared to its industry average Forward P/E of 15.94.
The Food - Miscellaneous industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 190, positioning it in the bottom 24% 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.
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Vital Farms, Inc. (VITL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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