United Natural Foods (UNFI) Is Strong On High Volume Today

Trade-Ideas LLC identified United Natural Foods (UNFI) as a strong on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

United Natural Foods

(

UNFI

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified United Natural Foods as such a stock due to the following factors:

  • UNFI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $21.8 million.
  • UNFI has traded 82,528 shares today.
  • UNFI is trading at 2.21 times the normal volume for the stock at this time of day.
  • UNFI is trading at a new high 3.05% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on UNFI:

United Natural Foods, Inc., together with its subsidiaries, distributes and retails natural, organic, and specialty foods and non-food products in the United States and Canada. UNFI has a PE ratio of 19. Currently there are 2 analysts that rate United Natural Foods a buy, 2 analysts rate it a sell, and 6 rate it a hold.

The average volume for United Natural Foods has been 711,800 shares per day over the past 30 days. United Natural has a market cap of $2.4 billion and is part of the services sector and wholesale industry. The stock has a beta of 1.46 and a short float of 6.6% with 8.61 days to cover. Shares are up 24.2% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates United Natural Foods as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • UNFI's revenue growth has slightly outpaced the industry average of 1.5%. Since the same quarter one year prior, revenues slightly increased by 0.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • UNFI's debt-to-equity ratio is very low at 0.30 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.83 is somewhat weak and could be cause for future problems.
  • The gross profit margin for UNITED NATURAL FOODS INC is rather low; currently it is at 15.97%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.79% trails that of the industry average.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Food & Staples Retailing industry and the overall market, UNITED NATURAL FOODS INC's return on equity is below that of both the industry average and the S&P 500.

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