Is United Natural Foods (UNFI) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is United Natural Foods (UNFI). UNFI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 14.40 right now. For comparison, its industry sports an average P/E of 18.09. Over the last 12 months, UNFI's Forward P/E has been as high as 16.96 and as low as 4.36, with a median of 6.92.
Another notable valuation metric for UNFI is its P/B ratio of 0.91. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2. Over the past 12 months, UNFI's P/B has been as high as 1.04 and as low as 0.23, with a median of 0.42.
These are just a handful of the figures considered in United Natural Foods's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that UNFI is an impressive value stock right now.
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United Natural Foods, Inc. (UNFI) : Free Stock Analysis Report
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