Why NASDAQ:VITL is Poised for High Growth.

Our stock screener has spotted VITAL FARMS INC (NASDAQ:VITL) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NASDAQ:VITL.

What is the technical picture of NASDAQ:VITL telling us.

As part of its analysis, ChartMill provides a comprehensive Technical Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various technical indicators and properties.

Overall VITL gets a technical rating of 10 out of 10. In the last year, VITL was one of the better performers in the market. There are positive signs in the very recent evolution, but the medium term picture is slightly mixed.

• Both the short term and long term trends are positive. This is a very positive sign.
• When comparing the yearly performance of all stocks, we notice that VITL is one of the better performing stocks in the market, outperforming 98% of all stocks. We also observe that the gains produced by VITL over the past year are nicely spread over this period.
• VITL is part of the Food Products industry. There are 91 other stocks in this industry. VITL outperforms 96% of them.
• VITL is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so VITL is lagging the market slightly.
• VITL is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.
• Volume is considerably higher in the last couple of days, which is what you like to see during a strong movement up.

Check the latest full technical report of VITL for a complete technical analysis.

How do we evaluate the setup for NASDAQ:VITL?

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NASDAQ:VITL is 7:

VITL has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 40.36. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 38.30, a Stop Loss order could be placed below this zone.

What matters for high growth investors.

• In the most recent financial report, VITAL FARMS INC reported a 140.0% increase in quarterly earnings compared to the previous quarter. This notable growth indicates positive momentum in the company's financials, suggesting an upward trend
• With consistent quarter-to-quarter (Q2Q) revenue growth of 38.46%, VITAL FARMS INC exemplifies its ability to generate increased sales and revenue streams. This growth signifies the company's strong business performance and its potential for continued growth.
• VITAL FARMS INC has experienced 29.79% growth in EPS over a 3-year period, demonstrating its ability to generate sustained and positive earnings momentum.
• VITAL FARMS INC has achieved significant 1-year revenue growth of 26.61%, signaling its ability to capture market opportunities and drive top-line expansion. This growth indicates the company's effective execution and its potential for continued success.
• In the most recent financial report, VITAL FARMS INC reported a 140.0% increase in quarterly earnings compared to the previous quarter. This notable growth indicates positive momentum in the company's financials, suggesting an upward trend
• With positive growth in its operating margin over the past year, VITAL FARMS INC showcases its ability to improve profitability through effective cost control and operational efficiency. This growth underscores the company's commitment to enhancing its financial performance.
• VITAL FARMS INC has shown positive growth in its free cash flow (FCF) over the past year, indicating improved cash generation and financial strength. This growth highlights the company's ability to effectively manage its cash flows and generate surplus funds.
• VITAL FARMS INC has achieved an impressive Return on Equity (ROE) of 19.74%, showcasing its ability to generate favorable returns for shareholders.
• With a Debt-to-Equity ratio at 0.04, VITAL FARMS INC showcases its prudent financial management. The company's balanced approach between debt and equity reflects its commitment to maintaining a stable capital structure.
• With institutional shareholders at 75.46%, VITAL FARMS INC demonstrates a healthy ownership distribution. This reflects a mix of institutional and individual investors, creating a market environment that may foster increased trading activity and price discovery.
• VITAL FARMS INC has a strong history of beating EPS estimates in the last 4 quarters, signaling its ability to consistently exceed market expectations. This indicates the company's strong financial performance and its potential for creating shareholder value.
• The Relative Strength (RS) of VITAL FARMS INC has been consistently solid, with a current 98.37 rating. This highlights the stock's ability to exhibit sustained price strength and signifies its competitive advantage. VITAL FARMS INC exhibits strong prospects for further price appreciation.

Our High Growth Momentum Breakout screen will find you more ideas suited for high growth momentum breakouts.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.