This week’s catalysts

Join TradeAlgo's Free Live Trading Session ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!]( Hello investor, This week’s catalysts Last Friday’s nonfarm payrolls data showed the economy adding fewer-than-expected jobs in April with the unemployment rate rising. This cooled the anxiety that the economy was overheating and boosted the chance of a rate cut this year. Some analysts remain unconvinced that the economy could pull off a soft landing, but a cooling economy allows the Federal Reserve to act quicker in cutting rates. - “It feels a little early to declare that the U.S. economy has made a soft landing since the Fed still is holding interest rates at restrictive levels. But the April jobs report helps clear a path to that destination,” said Comerica Bank chief economist Bill Adams. Comerica Bank chief economist Bill Adams (Photo: Comerica Bank) The earnings season is largely wrapping up, but we will get results from Disney (Tuesday) and Uber (Wednesday). Since the results have been solid, the stock market didn’t see much decline during the season. We will have several Fed officials speaking publicly this week — including Thomas Barkin and John Williams who are set to speak today. Happy trading! The World’s Most Expensive Eggs Are A Screaming Buy Today’s Pick: Vital Farms, Inc. (VITL) I am sure that you’ve seen Vital Farms’ eggs. They are the priciest eggs you can find in a grocery store. Their eggs often cost two times more than regular eggs. Why? Their chickens are pasture-raised which offers an ethically-sourced and healthiest eggs you can find. The company was founded in 2007, but it has exploded to become a national consumer brand. It works with over 300 family farms and is the leading U.S. brand for pasture-raised eggs by retail dollar sales. They also offer butter, hard-boiled eggs, and liquid whole eggs. (Photo: Vital Farms) The #1 catalyst behind Vital Farms’ growth is the changing view on caged eggs. 10 states have passed legislation to remove caged eggs. Three more states have a legislation in progress. All of this plays right into Vital Farms’ hands. The company has a powerful brand awareness and loyalty. Its recent research found that 36% of Vital Farms shoppers will skip buying eggs if the grocery store doesn’t carry Vital Farms’ brand. This is even though Vital Farms has $4.87 price gap between its eggs and conventional eggs. Even it has $1.94 premium over its peer group’s eggs. In other words, Vital Farms can get away with charging higher prices, creating an enviable business model. Moreover, Vital Farms customers are spending more dollars with the company. In just three years, customers spent 51% more with the company’s shell eggs. Some of it may be due to inflation, but it demonstrates the pricing power Vital Farms holds. Naturally, it leads to strong revenue growth over the years. It is easy to grow revenues when inflation has led to higher eggs prices. That’s true. Regardless, the company has proved to expand its brand loyalty while penetrating new households who are learning about Vital Farms. 2024 will be another good year if Vital Farms achieves its guidance. It expects over 17% net revenue growth. Its adjusted EBITDA is expected at more than $57 million — or about 5% of its market cap. Bottom line: Vital Farms is trading at a $1.06 billion market cap which looks insanely cheap when we consider its powerful brand. Its product lines are small. With a strong brand, it can easily expand to other products that will fuel its revenue growth for many years to come. This is potentially a blockbuster stock to own for years. [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](       © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](