Why NASDAQ:VITL Is a Promising High-Growth Stock in the Midst of Consolidation.

In this article we will dive into VITAL FARMS INC (NASDAQ:VITL) as a possible candidate for growth investing. Investors should always do their own research, but we noticed VITAL FARMS INC showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

Analyzing Growth Metrics

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:VITL has received a 10 out of 10:

• The Earnings Per Share has grown by an impressive 148.89% over the past year.
• The Earnings Per Share has been growing by 31.52% on average over the past years. This is a very strong growth
• VITL shows a strong growth in Revenue. In the last year, the Revenue has grown by 29.15%.
• Measured over the past years, VITL shows a very strong growth in Revenue. The Revenue has been growing by 34.63% on average per year.
• Based on estimates for the next years, VITL will show a very strong growth in Earnings Per Share. The EPS will grow by 41.62% on average per year.
• VITL is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 22.01% yearly.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Health Analysis for NASDAQ:VITL

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:VITL, the assigned 8 reflects its health status:

• An Altman-Z score of 16.07 indicates that VITL is not in any danger for bankruptcy at the moment.
• With an excellent Altman-Z score value of 16.07, VITL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
• VITL has a debt to FCF ratio of 0.21. This is a very positive value and a sign of high solvency as it would only need 0.21 years to pay back of all of its debts.
• VITL's Debt to FCF ratio of 0.21 is amongst the best of the industry. VITL outperforms 93.02% of its industry peers.
• VITL has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
• VITL has a Debt to Equity ratio of 0.04. This is amongst the best in the industry. VITL outperforms 80.23% of its industry peers.
• A Current Ratio of 3.24 indicates that VITL has no problem at all paying its short term obligations.
• VITL's Current ratio of 3.24 is amongst the best of the industry. VITL outperforms 84.88% of its industry peers.
• A Quick Ratio of 2.81 indicates that VITL has no problem at all paying its short term obligations.
• VITL has a Quick ratio of 2.81. This is amongst the best in the industry. VITL outperforms 91.86% of its industry peers.

Profitability Examination for NASDAQ:VITL

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:VITL, the assigned 8 is noteworthy for profitability:

• With an excellent Return On Assets value of 14.51%, VITL belongs to the best of the industry, outperforming 94.19% of the companies in the same industry.
• With an excellent Return On Equity value of 19.74%, VITL belongs to the best of the industry, outperforming 86.05% of the companies in the same industry.
• VITL has a Return On Invested Capital of 13.66%. This is amongst the best in the industry. VITL outperforms 90.70% of its industry peers.
• The last Return On Invested Capital (13.66%) for VITL is above the 3 year average (3.76%), which is a sign of increasing profitability.
• VITL has a better Profit Margin (8.68%) than 81.40% of its industry peers.
• VITL has a better Operating Margin (10.35%) than 73.26% of its industry peers.
• VITL's Operating Margin has improved in the last couple of years.
• VITL has a Gross Margin of 37.36%. This is amongst the best in the industry. VITL outperforms 82.56% of its industry peers.

How do we evaluate the setup for NASDAQ:VITL?

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NASDAQ:VITL currently holds a 7 as its setup rating, suggesting a particular level of consolidation in the stock.

Besides having an excellent technical rating, VITL also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price. There is a support zone below the current price at 43.89, a Stop Loss order could be placed below this zone.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

Our latest full fundamental report of VITL contains the most current fundamental analsysis.

Our latest full technical report of VITL contains the most current technical analsysis.

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.