- Vital Farms (VITL) shows technical momentum and hit a new all-time high on Aug. 25.
- VITL maintains a 100% “Buy” opinion from Barchart indicators.
- Shares are up more than 58% over the past year.
- Fundamentals are robust, with projected double-digit revenue and earnings growth for the next two years, supporting recent price appreciation.
Today’s Featured Stock
Valued at $2.3 billion, Vital Farms (VITL) offers a range of produced, pasture-raised foods. Its products include shell eggs, butter, hard-boiled eggs, ghee, and liquid whole eggs.
What I’m Watching
I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. VITL checks those boxes. Since the Trend Seeker signaled a buy on Aug. 7, the stock gained 17.88%.
VITL Price vs. Daily Moving Averages:
Barchart Technical Indicators for Vital Farms
Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.
Vital Farms shares hit a new all-time high on Aug. 25, touching $52.33 in intraday trading.
- Vital Farms has a Weighted Alpha of +68.71.
- VITL has an 100% “Buy” opinion from Barchart.
- The stock gained 58.22% over the past year.
- VITL has its Trend Seeker “Buy” signal intact.
- Vital Farms is trading above its 20-, 50-, and 100-day moving averages.
- The stock made 15 new highs and gained 48.16% in the last month.
- Relative Strength Index (RSI) is at 78.13%.
- There’s a technical support level around $50.47.
Don’t Forget the Fundamentals
- $2.3 billion market capitalization.
- 45.48x trailing price-earnings ratio.
- Revenue is projected to grow 27.44% this year and another 20.02% next year.
- Earnings are estimated to increase 18.27% this year and an additional 15.29% next year.
Analyst and Investor Sentiment on Vital Farms
I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it’s hard to make money swimming against the tide.
It looks like Wall Street analysts are positive on VITL, but both CFRA’s MarketScope Advisor and Morningstar have “Sell” or “Overvalued” ratings.
- The Wall Street analysts tracked by Barchart have issued 10 “Strong Buy,” 1 “Moderate Buy,” and 1 “Hold” opinion on the stock.
- Their price targets are between $48-$53.
- Value Line gives the stock an “Average” rating but has a price target of $62.
- CFRA’s MarketScope Advisor gives the stock a “Sell” rating.
- Morningstar thinks the stock is 18% overvalued with a fair value of $42.95.
- 45 individual investors on Motley Fool think the stock will beat the market while 6 think it won’t.
- 5,760 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold.”
The Bottom Line on Vital Farms
Vital Farms currently has momentum and is hitting new highs. Its main products of eggs and butter are in high demand. Since analysts have forecast double-digit increases in both revenue and earnings for at least the next two years, it seems the price momentum is warranted.
I caution that VITL is volatile and even speculative in the current environment, which means investors should use strict risk management and stop-loss strategies.
Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.
Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
