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3 Big Reasons to Love Vital Farms (VITL)

By: StockStory

July 16, 2025 at 00:08 AM EDT

VITL Cover Image

Over the last six months, Vital Farms’s shares have sunk to $38, producing a disappointing 11.9% loss - a stark contrast to the S&P 500’s 5.2% gain. This might have investors contemplating their next move.

Following the drawdown, is this a buying opportunity for VITL? Find out in our full research report, it’s free.

Why Is VITL a Good Business?

With an emphasis on ethically produced products, Vital Farms (NASDAQ: VITL) specializes in pasture-raised eggs and butter.

1. Elevated Demand Drives Higher Sales Volumes

Revenue growth can be broken down into changes in price and volume (the number of units sold). While both are important, volume is the lifeblood of a successful staples business as there’s a ceiling to what consumers will pay for everyday goods; they can always trade down to non-branded products if the branded versions are too expensive.

Vital Farms’s average quarterly volume growth of 17.8% over the last two years has beaten the competition by a long shot. This is great because companies with significant volume growth are needles in a haystack in the stable consumer staples sector. Vital Farms Year-On-Year Volume Growth

2. Projected Revenue Growth Is Remarkable

Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite, though some deceleration is natural as businesses become larger.

Over the next 12 months, sell-side analysts expect Vital Farms’s revenue to rise by 26.7%. While this projection is below its 30.5% annualized growth rate for the past three years, it is eye-popping and implies the market is baking in success for its products.

3. Outstanding Long-Term EPS Growth

Analyzing the change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions.

Vital Farms’s full-year EPS flipped from negative to positive over the last three years. This is a good sign and shows it’s at an inflection point.

Vital Farms Trailing 12-Month EPS (Non-GAAP)

Final Judgment

These are just a few reasons why Vital Farms ranks highly on our list. After the recent drawdown, the stock trades at 27.5× forward P/E (or $38 per share). Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More Than Vital Farms

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

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