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

Vital Farms (VITL) closed the most recent trading day at $40.66, moving -1.19% from the previous trading session. This change lagged the S&P 500's daily gain of 0.34%. Elsewhere, the Dow gained 0.09%, while the tech-heavy Nasdaq added 0.42%. Coming into today, shares of the company had lost 20.71% in the past month. In that same time, the Consumer Staples sector lost 3.82%, while the S&P 500 gained 3.54%. Market participants will be closely following the financial results of Vital Farms in its upcoming release. It is anticipated that the company will report an EPS of $0.28, marking a 75% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $189.46 million, indicating a 30.66% increase compared to the same quarter of the previous year. VITL's full-year Zacks Consensus Estimates are calling for earnings of $1.35 per share and revenue of $772.03 million. These results would represent year-over-year changes of +14.41% and +27.33%, 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 business performance and profit potential. Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Vital Farms boasts a Zacks Rank of #3 (Hold). In the context of valuation, Vital Farms is at present trading with a Forward P/E ratio of 30.48. This signifies a premium in comparison to the average Forward P/E of 16.48 for its industry. The Food - Miscellaneous industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 194, placing it within the bottom 22% of over 250 industries. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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. Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vital Farms, Inc. (VITL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks