Vital Farms: The Egg Story Isn't Broken

Kurt Christensen900 FollowersFollow5ShareSaveCommentsSummaryVital Farms experienced a sharp post-earnings selloff, missing EPS estimates and lowering guidance, but I believe the reaction was overdone.VITL maintains strong growth, with 28.7% revenue and 50%+ EPS growth, and management continues to target $2B revenue by 2030.Operating leverage remains robust, costs are well-controlled, and a $100M buyback (over 11% of market cap) underscores management's confidence.With a forward P/S under 1 and a PE of 13.8, VITL is now a value play despite ongoing 20%+ growth; I rate it a buy. madisonwi/iStock via Getty Images Vital Farms, Inc. (VITL) has become a sore spot in my portfolio. My two buy ratings are both largely in the red. The stock was most recently hammered following their most recent earnings. The stock saw its price drop byThis article was written byKurt Christensen900 FollowersFollowI am a graduate in finance. Currently working in international tax. A personal investor.Analyst’s Disclosure: I/we have a beneficial long position in the shares of VITL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.