Vital Farms has made it to an elite list that holds just two Magnificent Seven stocks: Nvidia and Meta. That's why the egg producer is Tuesday's selection for IBD 50 Stocks To Watch and also sits on Investor's Business Daily's MarketSurge Growth 250 list.
Shares have formed a rather deep cup base with a buy point of 48.41. That is also Vital Farms stock's all-time intraday high, reached on July 1.
Sales growth at Vital Farms over the past eight quarters has ranged between 20% and 55%. But earnings grew by triple digits or more during that time, ranging from 140% to more than 1,000% in one instance.
During the second quarter ended June 30, sales grew 38% to $147.4 million while earnings per share of 36 cents were 140% higher than the prior year. The pasture-raised egg producer also increased its full-year net sales outlook to $590 million from $575 million.
Sell-Off In Vital Farms Stock
But that was not enough to prevent an earnings sell-off on Aug. 8. IBD MarketSurge chart analysis tools show that shares plunged 9% but recovered to keep building out the early-stage base.
Vital Farms has partnered with more than 350 family farms for ethically produced pasture-raised eggs and other dairy products. The food and meat products leader holds a near-ideal Relative Strength Rating of 98, the top score in its industry group. The Earnings Per Share Rating of 81 is adequate as per Investors' Business Daily's criteria for stock picking.
Mutual funds own 63% of Vital Farms stock. More funds have been adding the stock in recent weeks, giving it an Accumulation/Distribution Rating of B+.
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