Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a new lifetime high 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 $18.2 million.
- UNFI has traded 156,641 shares today.
- UNFI is trading at a new lifetime high.
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More details on UNFI:
United Natural Foods, Inc., together with its subsidiaries, distributes and retails natural, organic, and specialty foods, as well as non-food products primarily in the United States and Canada. UNFI has a PE ratio of 30.6. Currently there are 5 analysts that rate United Natural Foods a buy, 1 analyst rates it a sell, and 4 rate it a hold.
The average volume for United Natural Foods has been 267,400 shares per day over the past 30 days. United Natural has a market cap of $3.3 billion and is part of the services sector and wholesale industry. The stock has a beta of 0.45 and a short float of 3.5% with 6.49 days to cover. Shares are up 25.7% year to date as of the close of trading on Friday.
rates United Natural Foods as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 2.5%. Since the same quarter one year prior, revenues rose by 22.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- UNITED NATURAL FOODS INC has improved earnings per share by 27.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, UNITED NATURAL FOODS INC increased its bottom line by earning $2.18 versus $1.86 in the prior year. This year, the market expects an improvement in earnings ($2.50 versus $2.18).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Food & Staples Retailing industry average. The net income increased by 27.6% when compared to the same quarter one year prior, rising from $25.14 million to $32.08 million.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- UNFI's debt-to-equity ratio is very low at 0.15 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 0.88 is somewhat weak and could be cause for future problems.
- You can view the full United Natural Foods Ratings Report.