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Vitamin Shoppe (VSI) Outpaces Stock Market Gains: What You Should Know

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Vitamin Shoppe closed the most recent trading day at $5.09, moving +0.39% from the previous trading session. This change outpaced the S&P 500's 0.07% gain on the day. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq gained 0.14%.

Prior to today's trading, shares of the nutritional supplement retailer had lost 0.98% over the past month. This has lagged the Retail-Wholesale sector's gain of 4.26% and the S&P 500's gain of 6.28% in that time.

Investors will be hoping for strength from VSI as it approaches its next earnings release. The company is expected to report EPS of -$0.31, down 82.35% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $255.79 million, down 4.83% from the year-ago period.

Investors might also notice recent changes to analyst estimates for VSI. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 10.15% lower. VSI is currently a Zacks Rank #3 (Hold).

Looking at its valuation, VSI is holding a Forward P/E ratio of 24.53. This valuation marks a premium compared to its industry's average Forward P/E of 21.33.

The Food - Natural Foods Products industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 173, which puts it in the bottom 33% of all 250+ industries.

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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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