Laird Superfood, Inc. (LSF) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of Laird Superfood, Inc. (LSF)? Shares have been on the move with the stock up 301.3% over the past month. The stock hit a new 52-week high of $3.25 in the previous session. Laird Superfood, Inc. has gained 252.8% since the start of the year compared to the 2.4% move for the Zacks Consumer Staples sector and the 3.3% return for the Zacks Food - Miscellaneous industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on March 12, 2024, Laird Superfood, Inc. reported EPS of $0 versus consensus estimate of $-0.21.
For the current fiscal year, Laird Superfood, Inc. is expected to post earnings of -$0.46 per share on $38.7 million in revenues. This represents a 56.6% change in EPS on a 13.08% change in revenues.
Valuation Metrics
While Laird Superfood, Inc. has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Laird Superfood, Inc. has a Value Score of F. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Laird Superfood, Inc. currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Laird Superfood, Inc. meets the list of requirements. Thus, it seems as though Laird Superfood, Inc. shares could have potential in the weeks and months to come.
How Does LSF Stack Up to the Competition?
Shares of LSF have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Vital Farms, Inc. (VITL). VITL has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of D.
Earnings were strong last quarter. Vital Farms, Inc. beat our consensus estimate by 21.43%, and for the current fiscal year, VITL is expected to post earnings of $0.76 per share on revenue of $567.36 million.
Shares of Vital Farms, Inc. have gained 38.2% over the past month, and currently trade at a forward P/E of 28.4X and a P/CF of 23.65X.
The Food - Miscellaneous industry is in the top 35% of all the industries we have in our universe, so it looks like there are some nice tailwinds for LSF and VITL, even beyond their own solid fundamental situation.
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