What Investors Need to Know About This Outperforming Food Stock

UNFI appoints their first Chief Corporate Affairs Officer

Jan 26, 2022 at 11:55 AM
facebook X logo linkedin

  • United Natural Foods, Inc. (NYSE:UNFI) is one of the largest wholesale distributors delivering food to people throughout the United States and Canada. UNFI offers a wide variety of products to customer locations throughout North America including natural product superstores, independent retailers, conventional supermarket chains, ecommerce retailers, and food service customers. At last check, UNFI was trading up 1.4% at $37.51.

On Jan. 10, United Natural Foods announced that Matt Echols has been appointed to the newly created position of Chief Corporate Affairs Officer with oversight of UNFI’s Corporate Communications and Engagement, Public Policy, Government Relations, and Environmental, Social and Governance (ESG) teams. Echols will officially join UNFI on March 1.

United Natural Foods stock has increased about 37% year-over-year and is up 52% since touching its 52-week low of $24.34 last February. However, shares of UNFI have already dropped 25% year-to-date and shed 36% since hitting its five-year high of $57.89 in early December.

Moreover, the whole food delivery company’s overall revenue and net income growth rates have been positive despite UNFI struggling to find consistency on an annual basis, most notably in the bottom-line. In addition, United Natural Foods stock has a very intriguing valuation with a price-earnings ratio of 10.03 and a price-sales ratio of 0.12.

However, UNFI’s balance sheet is very weak with just $46 million in cash. It also has $3.72 billion in total debt, which is 73% higher than its market cap of $2.15 billion, indicating relatively weak fundamentals. Overall, the risk-reward potential with United Natural Foods stock is simply unattractive despite UNFI’s low valuation.

Short interest has been dropping off, down 22% during the past two reporting periods, and now accounts for 3.4% of the stock's total available float. At the equity's average pace of daily trading, it would take short sellers more than three days to buy back their bearish bets.

In terms of analyst sentiment, those following the food giant are leaning pessimistic. Specifically, five of the eight in coverage sport a tepid "hold" or worse recommendation, leaving plenty of room for upgrades moving forward.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI