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Strength Seen in Vital Farms (VITL): Can Its 6.8% Jump Turn into More Strength?

Vital Farms (VITL) shares rallied 6.8% in the last trading session to close at $17.40. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 8.4% gain over the past four weeks.

Vital Farms has been benefiting from solid demand for its products and positive brand momentum. The company’s revenue performance has been impressive. Further, focus on operational execution amid a tough landscape has been aiding Vital Farms, which expects revenue growth of 30% and adjusted EBITDA increase of 62% in full-year fiscal 2022.

This company is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of +122.2%. Revenues are expected to be $96.87 million, up 25.1% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Vital Farms, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on VITL going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Vital Farms is part of the Zacks Food - Miscellaneous industry. Freshpet (FRPT), another stock in the same industry, closed the last trading session 3.3% higher at $63.23. FRPT has returned 16.2% in the past month.

Freshpet's consensus EPS estimate for the upcoming report has changed +2.5% over the past month to -$0.08. Compared to the company's year-ago EPS, this represents a change of +61.9%. Freshpet currently boasts a Zacks Rank of #3 (Hold).

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Vital Farms, Inc. (VITL) : Free Stock Analysis Report

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