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Vital Farms (VITL - Free Report) is a Zacks Rank #2 (Buy) that has a C for Value and an A for Growth. This company is a farm that offers eggs in several forms as well as egg products. The company just repoted a strong beat of the Zacks Consensus Estimate but the stock dropped 12% following the report. Let’s explore more about this company in this Bull of The Day article.
Description
Vital Farms Inc. offers a range of produced pasture-raised foods. Its product, including shell eggs, butter, hard-boiled eggs, ghee and liquid whole eggs. Vital Farms Inc. is based in AUSTIN, Texas.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
Vital Farms (VITL - Free Report) has a solid earnings history with the company topping the Zacks Consensus in each of the last four quarters.
Over the course of the last four quarters the average positive earnings surprise works out to be 84.5%.
Earnings Estimates Revisions
Earnings estimates revisions is what the Zacks Rank is all about.
Annual Estimates are moving higher for Vital Farms.
This quarter has moved up from 14 cents down to 12 cents over the last week.
Next quarter is down a penny to 18 cents over the last week as well.
The full year 2024 has increased from $0.94 to $1.11 over the last 90 days.
Next year has also moved up from $1.13 to $1.19 over the last 90 days.
Growth
The company has beat the sales estimate in each of the last three quarters. Most recently the company beat the topline by $4M in reporting $147M in sales. That represents 2.5% revenue surprise.
For 2024 the company is expected to show 26.5% growth and next year is looking for 16.7% growth on the topline.
Valuation
The forward PE is 28x and that right about where you expect a growth stock like this to be priced. Price to book is 5.5x and that metric is a little high. Price to sales is at 2.5x which is pretty reasonable given the growth.
Margins are looking good with the Zacks site showing operating margins moving from 5.42% to 7.5% and up to 8.7% over the last three quarters. Growing sales and higher margins will translate to higher earnings per share.
Recent Dip Presents A Buying Opportunity
The most recent earnings report was a good one, but the stock dropped 12% in the session following the report. This marks the fist time in the last 6 quarters that the stock did not move higher following and earnings beat. The stock has come in from a recent high of $48, so this dip could represent a wonderful buying opportunity.
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Bull Of The Day: Vital Farms (VITL)
Vital Farms (VITL - Free Report) is a Zacks Rank #2 (Buy) that has a C for Value and an A for Growth. This company is a farm that offers eggs in several forms as well as egg products. The company just repoted a strong beat of the Zacks Consensus Estimate but the stock dropped 12% following the report. Let’s explore more about this company in this Bull of The Day article.
Description
Vital Farms Inc. offers a range of produced pasture-raised foods. Its product, including shell eggs, butter, hard-boiled eggs, ghee and liquid whole eggs. Vital Farms Inc. is based in AUSTIN, Texas.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
Vital Farms (VITL - Free Report) has a solid earnings history with the company topping the Zacks Consensus in each of the last four quarters.
Over the course of the last four quarters the average positive earnings surprise works out to be 84.5%.
Earnings Estimates Revisions
Earnings estimates revisions is what the Zacks Rank is all about.
Annual Estimates are moving higher for Vital Farms.
This quarter has moved up from 14 cents down to 12 cents over the last week.
Next quarter is down a penny to 18 cents over the last week as well.
The full year 2024 has increased from $0.94 to $1.11 over the last 90 days.
Next year has also moved up from $1.13 to $1.19 over the last 90 days.
Growth
The company has beat the sales estimate in each of the last three quarters. Most recently the company beat the topline by $4M in reporting $147M in sales. That represents 2.5% revenue surprise.
For 2024 the company is expected to show 26.5% growth and next year is looking for 16.7% growth on the topline.
Valuation
The forward PE is 28x and that right about where you expect a growth stock like this to be priced. Price to book is 5.5x and that metric is a little high. Price to sales is at 2.5x which is pretty reasonable given the growth.
Margins are looking good with the Zacks site showing operating margins moving from 5.42% to 7.5% and up to 8.7% over the last three quarters. Growing sales and higher margins will translate to higher earnings per share.
Recent Dip Presents A Buying Opportunity
The most recent earnings report was a good one, but the stock dropped 12% in the session following the report. This marks the fist time in the last 6 quarters that the stock did not move higher following and earnings beat. The stock has come in from a recent high of $48, so this dip could represent a wonderful buying opportunity.