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Vital Farms (VITL) Outperforms Broader Market: What You Need to Know

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Vital Farms (VITL - Free Report) ended the recent trading session at $37.35, demonstrating a +1.49% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.54%. On the other hand, the Dow registered a gain of 0.52%, and the technology-centric Nasdaq increased by 0.74%.

Shares of the company have appreciated by 2.94% over the course of the past month, outperforming the Consumer Staples sector's loss of 1.49%, and lagging the S&P 500's gain of 4.2%.

The investment community will be paying close attention to the earnings performance of Vital Farms in its upcoming release. It is anticipated that the company will report an EPS of $0.28, marking a 22.22% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $168.88 million, indicating a 14.58% upward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.27 per share and a revenue of $743.1 million, representing changes of +7.63% and +22.56%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Vital Farms. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Vital Farms is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Vital Farms is presently being traded at a Forward P/E ratio of 29.05. This indicates a premium in contrast to its industry's Forward P/E of 15.96.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 164, which puts it in the bottom 34% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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