Chart of the Day: Vital Farms - Organic with a Profit


 The Chart of the Day belongs to the  food products company Vital Farms (VITL) .  I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart  feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 2 /20 the stock gained 154.38%.

VITL Price vs Daily Moving Averages

Vital Farms, Inc. is an ethically minded food company. It produces products sourced from animals raised on family farms, including shell eggs, butter, hard-boiled eggs, liquid whole eggs, ghee, and convenient breakfast offerings. The company sources its pasture-raised products from a network of approximately 300 family farms. It also leverages distributor relationships to fulfill orders for certain independent grocers and other customers. Currently, Vital Farms offers 23 retail stock keeping units, or SKUs, through a multi-channel retail distribution network across more than 24,000 stores and an online shopping platform. Its ethics are exemplified by its focus on the humane treatment of farm animals and sustainable farming practices. In addition, as a Delaware Public Benefit Corporation, the company prioritizes the long-term benefits of each of its stakeholders, including farmers and suppliers, customers and consumers, communities and the environment, and stockholders. 

Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the website when you read this report.

Barchart Technical Indicators:

  • 100% technical buy signals
  • 244.12+ Weighted Alpha
  • 170.71% gain in the last year
  • Trend Seeker buy signal
  • Above its 20, 50 and 100 day moving averages
  • 13 new highs and up 62.16% in the last month
  • Relative Strength Index 84.13%
  • Technical support level at $38.94
  • Recently traded at $40.93 with 50 day moving average of $27.22

Fundamental Factors:

  • Market Cap $1.64 billion
  • P/E 44.28
  • Revenue expected to grow 22.70% this year and another 16.90% next year
  • Earnings estimated to increase 18.80% this year

Analysts and Investor Sentiment -- 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:

  • Wall Street analysts issued 3 strong buy, 3 buy, and 3 recommendations
  • Analysts have price targets from $24 to $45
  • Value Line has the stock rated its above average rating of 2
  • CFRAs MarketScope has a  strong buy rating 
  • MorningStar gives the stock an average 3 star rating with a Fair Value of $40.43
  • 3,590 investors monitor the stock on Seeking Alpha

Additional disclosure: The Barchart Chart 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 and reevaluate your stop losses at least on a weekly basis.

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.