VITAL FARMS INC (NASDAQ:VITL) was identified by our screener as a strong growth stock with a favorable technical setup. The company combines solid fundamentals with a promising chart pattern, making it worth a closer look.
Fundamental Strengths
Growth: VITL has shown impressive revenue growth of 23.98% over the past year, with earnings per share (EPS) surging by 31.76%. Analysts expect continued growth, with EPS projected to increase by 20.55% annually.
Profitability: The company earns an 8/10 Profitability Rating, with strong margins—8.21% net profit margin and 37.63% gross margin—outperforming most peers in the Food Products industry.
Financial Health: VITL scores a 9/10 Health Rating, indicating a strong balance sheet with minimal debt and ample liquidity (Current Ratio of 3.35).
Technical Setup
Trend Strength: Both short-term and long-term trends are positive, with the stock trading near the upper end of its recent range ($30.43 - $39.95).
Support Levels: Multiple support zones exist between $38.15 and $30.51, providing downside protection.
Breakout Potential: The stock is consolidating with reduced volatility, suggesting a potential breakout above resistance at $38.92.