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Vital Farms (VITL) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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In the latest trading session, Vital Farms (VITL - Free Report) closed at $38.14, marking a -1.98% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.33%. Meanwhile, the Dow experienced a drop of 0.63%, and the technology-dominated Nasdaq saw a decrease of 0.22%.

The company's shares have seen an increase of 20.88% over the last month, surpassing the Consumer Staples sector's loss of 0.8% and the S&P 500's gain of 4.07%.

Market participants will be closely following the financial results of Vital Farms in its upcoming release. The company is predicted to post an EPS of $0.28, indicating a 22.22% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $168.88 million, up 14.58% from the year-ago period.

VITL's full-year Zacks Consensus Estimates are calling for earnings of $1.27 per share and revenue of $743.1 million. These results would represent year-over-year changes of +7.63% and +22.56%, respectively.

Investors might also notice recent changes to analyst estimates for Vital Farms. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Vital Farms is holding a Zacks Rank of #3 (Hold) right now.

In the context of valuation, Vital Farms is at present trading with a Forward P/E ratio of 30.72. This valuation marks a premium compared to its industry average Forward P/E of 16.17.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 185, which puts it in the bottom 26% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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