8 Best Small Cap Agriculture Stocks to Buy

2. Vital Farms (NASDAQ:VITL)  

Number of Hedge Fund Holders: 21

Market Capitalization as of August 9: $1.31 Billion  

Vital Farms (NASDAQ:VITL) works with over 300 farms and specializes in packaging, marketing, and distributing eggs, butter, and ghee. The company sells its products under the brand names Vital Farms, Alfresco Farms, Lucky Ladies, and RedHill Farms in approximately 24,000 stores in the United States.

The U.S. food industry has traditionally been dominated by heavily processed foods and large-scale factory farming, which often come with health and environmental concerns. However, recent shifts in consumer consciousness have led to a growing demand for more sustainable and ethically produced food products, even if they come at a premium. This trend has aligned with companies such as Vital Farms (NASDAQ:VITL) which are known for their high ethical standards and commitment to sustainability. Given the increasing consumer demand for ethically sourced food and Vital Farms (NASDAQ:VITL) strong commitment to sustainable farming practices, the company is well-positioned to benefit from these trends, making it a compelling investment choice.

Vital Farms (NASDAQ:VITL) focuses on pasture-raised eggs and the humane treatment of animals. Their eggs are known for their superior taste and quality, which has driven sales and customer loyalty as it resonates with consumers who are increasingly concerned about animal welfare and sustainable food production. Vital Farms (NASDAQ:VITL) has seen consistent growth in its gross profit over the past three years, with an impressive increase of 74.13%. On May 9, Vital Farms (NASDAQ:VITL) reported that their revenue for the quarter ended on March 31 increased by 24.1% to a record $147.9 million year on year. Net Income also increased to $19 million, from $7.2 million compared to the same quarter in the previous year.

Vital Farms (NASDAQ:VITL) is valued at $1.31 billion as of August 9. As of the first quarter, the stock is held by 21 hedge funds with stakes worth $85.4 million. Marshall Wace LLP is the largest shareholder in the company and owns stocks worth $16.8 million as of March 31.

Analysts forecast that the company’s earnings will increase by 53.4% this year. The company has consistently exceeded EPS estimates over the past four quarters and is projected to increase its earnings per share by 17.84% by next year. The stock price has gained 245% over the last 12 months and is currently trading at $30. Analysts hold a Buy rating on the stock and have a median price target of $40.83, which implies an upside of 30% from current levels.