Since May 2025, Vital Farms has been in a holding pattern, posting a small loss of 4% while floating around $32.80. The stock also fell short of the S&P 500’s 16.4% gain during that period.
Given the weaker price action, is now a good time to buy VITL? Or should investors expect a bumpy road ahead? Find out in our full research report, it’s free for active Edge members.
Why Is Vital Farms 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 21.9% 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. 
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 27.1%. While this projection is slightly below its 29.3% annualized growth rate for the past three years, it is eye-popping and indicates the market is baking in success for its products.
3. Outstanding Long-Term EPS Growth
We track the change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.
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.
Final Judgment
These are just a few reasons why we think Vital Farms is a high-quality business. With its shares trailing the market in recent months, the stock trades at 20.4× forward P/E (or $32.80 per share). Is now a good time to buy? See for yourself in our full research report, it’s free for active Edge members.
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