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Vital Farms (VITL) Stock Drops Despite Market Gains: Important Facts to Note

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Vital Farms (VITL - Free Report) closed the most recent trading day at $36.42, moving -7.82% from the previous trading session. This change lagged the S&P 500's 0.07% gain on the day. Elsewhere, the Dow saw a downswing of 0.7%, while the tech-heavy Nasdaq appreciated by 0.18%.

Coming into today, shares of the company had gained 5.19% in the past month. In that same time, the Consumer Staples sector lost 0.29%, while the S&P 500 gained 5.71%.

The investment community will be closely monitoring the performance of Vital Farms in its forthcoming earnings report. On that day, Vital Farms is projected to report earnings of $0.28 per share, which would represent a year-over-year decline of 22.22%. 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 are projecting earnings of $1.27 per share and revenue of $743.1 million, which would represent changes of +7.63% and +22.56%, respectively, from the prior year.

Any recent changes to analyst estimates for Vital Farms should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.26% higher. Vital Farms is holding a Zacks Rank of #1 (Strong Buy) right now.

Looking at its valuation, Vital Farms is holding a Forward P/E ratio of 31.11. This indicates a premium in contrast to its industry's Forward P/E of 16.84.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 168, which puts it in the bottom 32% 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.

To follow VITL in the coming trading sessions, be sure to utilize Zacks.com.


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