Vital Farms (VITL) closed at $12.77 in the latest trading session, marking a -5.76% move from the prior day. The stock's change was less than the S&P 500's daily gain of 2.51%. On the other hand, the Dow registered a gain of 2.85%, and the technology-centric Nasdaq increased by 2.8%.
The company's stock has dropped by 24.97% in the past month, falling short of the Consumer Staples sector's loss of 5.42% and the S&P 500's loss of 1.66%.
Investors will be eagerly watching for the performance of Vital Farms in its upcoming earnings disclosure. The company is expected to report EPS of $0.22, down 40.54% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $186.12 million, up 14.75% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.21 per share and revenue of $901.21 million. These totals would mark changes of -15.97% and +18.67%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Vital Farms. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate has moved 1.47% lower within the past month. Vital Farms is currently sporting a Zacks Rank of #5 (Strong Sell).
In the context of valuation, Vital Farms is at present trading with a Forward P/E ratio of 11.2. This expresses a discount compared to the average Forward P/E of 13.6 of its industry.
The Food - Miscellaneous industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 204, placing it within the bottom 17% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Vital Farms, Inc. (VITL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).