Vital Farms, Hain Celestial, Beyond Meat, TreeHouse Foods, and Coty Stocks Trade Up, What You Need To Know

What Happened?

A number of stocks jumped in the afternoon session after markets continued to rally as a surprisingly subdued inflation report fueled hopes for an imminent interest rate cut from the U.S. Federal Reserve. The July Consumer Price Index (CPI) report showed a year-over-year increase of 2.7%, which was slightly below market expectations. This tamer-than-expected inflation data was viewed by investors as a key signal that price pressures are easing. As a result, the market has strengthened its conviction that the U.S. Federal Reserve will implement an interest rate cut in September. The prospect of lower borrowing costs tends to boost corporate profitability and can stimulate economic activity, creating a more favorable environment for consumer-facing companies and fueling a broad-based market rally.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

Perishable Food company Vital Farms (NASDAQ:VITL) jumped 3%. Is now the time to buy Vital Farms? Access our full analysis report here, it’s free. Shelf-Stable Food company Hain Celestial (NASDAQ:HAIN) jumped 4.8%. Is now the time to buy Hain Celestial? Access our full analysis report here, it’s free. Perishable Food company Beyond Meat (NASDAQ:BYND) jumped 3.1%. Is now the time to buy Beyond Meat? Access our full analysis report here, it’s free. Shelf-Stable Food company TreeHouse Foods (NYSE:THS) jumped 4%. Is now the time to buy TreeHouse Foods? Access our full analysis report here, it’s free. Personal Care company Coty (NYSE:COTY) jumped 3.8%. Is now the time to buy Coty? Access our full analysis report here, it’s free.

Zooming In On Hain Celestial (HAIN)

Hain Celestial’s shares are extremely volatile and have had 55 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

Hain Celestial is down 69.5% since the beginning of the year, and at $1.83 per share, it is trading 79.9% below its 52-week high of $9.09 from October 2024. Investors who bought $1,000 worth of Hain Celestial’s shares 5 years ago would now be looking at an investment worth $54.38.

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