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Are Investors Undervaluing United Natural Foods (UNFI) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is United Natural Foods (UNFI - Free Report) . UNFI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

We should also highlight that UNFI has a P/B ratio of 0.75. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.17. Over the past 12 months, UNFI's P/B has been as high as 0.80 and as low as 0.31, with a median of 0.51.

Finally, investors will want to recognize that UNFI has a P/CF ratio of 5.94. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 17.18. Over the past year, UNFI's P/CF has been as high as 6.34 and as low as 2.54, with a median of 4.20.

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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