CEC, Meadowbrook: Ratings Changes

The stock: Meadowbrook Insurance has climbed 21% this year, beating the Dow and S&P 500. The stock trades at a price-to-earnings ratio of 12, a discount to property and casualty insurance peers and the market. The shares pay a 1% dividend yield.

The model upgraded United Natural Foods(UNFI) to "buy."

The numbers: Fiscal fourth-quarter revenue fell 6% to $853 million, but net income rose 21% to $16 million and earnings per share climbed 20% to 36 cents. Its gross margin was little changed at 20% and its operating margin remained steady at 3%. The company has weak liquidity, evident in its $10 million of cash and quick ratio of 0.5. The cash balance has fallen 59% to $10 million since the year-earlier quarter. A debt-to-equity ratio of 0.5 indicates conservative leverage.

The stock: United Natural Foods has climbed 47% this year, beating major U.S. indices. The stock trades at a price-to-earnings ratio of 19, indicating parity with the market, but a discount to food distributor peers. The company doesn't pay dividends.

-- Reported by Jake Lynch in Boston.

>To order reprints of this article, click here: Reprints