Vital Farms (VITL) Rises Yet Lags Behind Market: Some Facts Worth Knowing

Core Viewpoint - Vital Farms is expected to show strong earnings growth in its upcoming earnings report, with significant increases in both EPS and revenue compared to the previous year [1][2]. Group 1: Company Performance - Vital Farms closed at $40.35, reflecting a +0.2% change from the previous day, which is below the S&P 500's daily gain of 0.4% [1]. - The company's shares have increased by 23.83% over the past month, while the Consumer Staples sector has decreased by 2.13% [1]. - Analysts project an EPS of $0.14 for the upcoming quarter, representing a 40% increase year-over-year, and net sales of $142 million, which is a 28.59% increase from the same period last year [1]. Group 2: Earnings Estimates - For the full year, the Zacks Consensus Estimates predict earnings of $1.11 per share and revenue of $595.7 million, indicating increases of +88.14% and +26.25% respectively from the previous year [1]. - The Zacks Consensus EPS estimate has remained unchanged over the last 30 days, and Vital Farms currently holds a Zacks Rank of 3 (Hold) [2]. Group 3: Valuation and Industry Context - Vital Farms has a Forward P/E ratio of 36.44, which is a premium compared to its industry's Forward P/E of 17.96 [3]. - The Food - Miscellaneous industry, part of the Consumer Staples sector, ranks in the bottom 42% of all industries according to the Zacks Industry Rank [3]. - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [3].