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Vital Farms (VITL) Ascends But Remains Behind Market: Some Facts to Note

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The latest trading session saw Vital Farms (VITL - Free Report) ending at $39.95, denoting a +0.45% adjustment from its last day's close. The stock lagged the S&P 500's daily gain of 0.77%. Elsewhere, the Dow gained 0.47%, while the tech-heavy Nasdaq added 0.87%.

Prior to today's trading, shares of the company had gained 26.86% over the past month. This has outpaced the Consumer Staples sector's loss of 1.9% and the S&P 500's gain of 4.87% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Vital Farms in its upcoming earnings disclosure. In that report, analysts expect Vital Farms to post earnings of $0.14 per share. This would mark year-over-year growth of 40%. Meanwhile, the latest consensus estimate predicts the revenue to be $142 million, indicating a 28.59% increase compared to the same quarter of the previous year.

VITL's full-year Zacks Consensus Estimates are calling for earnings of $1.11 per share and revenue of $595.7 million. These results would represent year-over-year changes of +88.14% and +26.25%, respectively.

Investors should also note any recent changes to analyst estimates for Vital Farms. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 past month, the Zacks Consensus EPS estimate has remained steady. Right now, Vital Farms possesses a Zacks Rank of #3 (Hold).

Looking at valuation, Vital Farms is presently trading at a Forward P/E ratio of 35.99. This represents a premium compared to its industry's average Forward P/E of 17.49.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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