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Vital Farms (VITL) Increases Despite Market Slip: Here's What You Need to Know

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In the latest trading session, Vital Farms (VITL - Free Report) closed at $36.23, marking a +1.34% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.22%. On the other hand, the Dow registered a gain of 0.08%, and the technology-centric Nasdaq decreased by 0.51%.

Shares of the company have appreciated by 4.11% over the course of the past month, outperforming the Consumer Staples sector's loss of 1.34%, and the S&P 500's gain of 0.45%.

The investment community will be paying close attention to the earnings performance of Vital Farms in its upcoming release. The company's earnings per share (EPS) are projected to be $0.26, reflecting a 27.78% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $168.88 million, indicating a 14.58% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $1.25 per share and a revenue of $743.1 million, demonstrating changes of +5.93% and +22.56%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Vital Farms. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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 past month, the Zacks Consensus EPS estimate has remained steady. Vital Farms is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Vital Farms is currently trading at a Forward P/E ratio of 28.51. This expresses a premium compared to the average Forward P/E of 15.6 of its industry.

The Food - Miscellaneous industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 171, placing it within the bottom 31% of over 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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