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Freshpet (FRPT) Stock Sinks As Market Gains: Here's Why

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Freshpet (FRPT - Free Report) closed at $54.19 in the latest trading session, marking a -5.77% move from the prior day. This move lagged the S&P 500's daily gain of 0.58%. Meanwhile, the Dow gained 0.31%, and the Nasdaq, a tech-heavy index, added 0.89%.

Prior to today's trading, shares of the seller of refrigerated fresh pet food had gained 16.42% outpaced the Consumer Staples sector's gain of 1% and the S&P 500's gain of 0.16%.

Market participants will be closely following the financial results of Freshpet in its upcoming release. The company plans to announce its earnings on November 3, 2025. The company's upcoming EPS is projected at $0.43, signifying a 79.17% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $284.53 million, up 12.3% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.25 per share and a revenue of $1.11 billion, representing changes of +62.34% and +13.53%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Freshpet. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 4.03% lower. Freshpet is currently a Zacks Rank #5 (Strong Sell).

With respect to valuation, Freshpet is currently being traded at a Forward P/E ratio of 46.01. For comparison, its industry has an average Forward P/E of 16.04, which means Freshpet is trading at a premium to the group.

One should further note that FRPT currently holds a PEG ratio of 1.29. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Food - Miscellaneous industry held an average PEG ratio of 1.78.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 198, finds itself in the bottom 20% echelons 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.

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


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