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Vital Farms (VITL) Stock Declines While Market Improves: Some Information for Investors

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Vital Farms (VITL - Free Report) closed at $28.38 in the latest trading session, marking a -5.75% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.03%. Meanwhile, the Dow lost 0.58%, and the Nasdaq, a tech-heavy index, added 0.28%.

The company's shares have seen a decrease of 7.86% over the last month, not keeping up with the Consumer Staples sector's gain of 3.32% and the S&P 500's gain of 0.6%.

The investment community will be closely monitoring the performance of Vital Farms in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.38, reflecting a 65.22% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $213.26 million, reflecting a 28.48% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $1.44 per share and a revenue of $759.16 million, demonstrating changes of +22.03% and 0%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates 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.

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.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.04% decrease. Vital Farms is currently a Zacks Rank #3 (Hold).

Investors should also note Vital Farms's current valuation metrics, including its Forward P/E ratio of 18.41. This signifies a premium in comparison to the average Forward P/E of 14.11 for its industry.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 178, which puts it in the bottom 28% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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