Good nutrition plus good taste equals tasty profits. That's true for Vita Coco and a growing number of energy and health drink makers. Earnings growth for the maker of coconut flavored beverages ranged from 100% to over 1,000% over the last four quarters. On Monday, the Relative Strength (RS) Rating for Vita Coco stock headed into a new percentile, as it got a lift from 69 to 74.
Vita Coco Draws Customers With Variety Of Flavors
Vita Coco sells products like its strawberries and cream coconut drink, its original coconut juice and other flavors. Coconut beverages have gained popularity with consumers. One reason is research shows they can lower cholesterol and even promote weight loss. They are high in fiber and promote a full sensation, according to WebMD. However they should be taken in moderation because they are also high in calories and that could cancel out dietary benefits.
The upgraded 74 RS Rating for Vita Coco stock shows it outpaces 74% of all other stocks for price performance this past year. The rating puts it six points below the 80 or better benchmark that research shows stocks often have just before they break out and stage big upward moves.
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Small-cap Vita Coco is a relatively new company, having released its initial public offering in October 2021. It closed at 13.95 shortly after its IPO. Monday afternoon it closed at 27.87, up fractionally for the day and roughly double what it traded for 2-3/4 years ago.
Vita Coco is trying to complete a consolidation with a 33.29 buy point. That was its all-time intraday high, set in September 2023. See if the stock can break out in heavy trading. Look for its next earnings report on or around Aug. 7.
Among other key ratings, Vita Coco stock has a strong 87 Composite Rating out of 99 and an even stronger 95 Earnings Per Share Rating, putting it in the top 5% of stocks for recent and long-term profit growth.
Additionally it has a best-possible A SMR Rating, (Sales + profit Margins + Return on equity) on an A-to-E scale, reflecting strong fundamentals. Its C+ Accumulation/Distribution Rating shows that institutional investors like ETFs and university funds are buying slightly more of its shares than selling.
Earnings Growth Superb; Sales Strong With One Exception
Earnings grew 100% last quarter to 24 cents per share. The prior three quarters its EPS rose 999%, 100% then 320%. Revenue grew a scant 2% last quarter to $111.7 million. That warrants watching but it could be an anomaly. The prior three periods its sales grew 21%, 11% and then 15%.
Vita Coco earns the No. 6 rank among its peers in the 17-stock Beverages-Non-Alcoholic industry group. Primo Water, Coca-Cola Consolidated and National Beverage are among the top five highly rated stocks in the group.
IBD's unique Relative Strength Rating measures technical performance by showing how a stock's price action over the last 52 weeks measures up against that of the other stocks in our database.
Please follow James DeTar on X, formerly known as Twitter, @JimDeTar
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