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Unifi (UFI) Moves 14.7% Higher: Will This Strength Last?

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Unifi (UFI - Free Report) shares rallied 14.7% in the last trading session to close at $5.30. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 7.2% loss over the past four weeks.

United Natural stock is rising surrounding optimism about its strategic realignment and continued strength in the natural and organic food segment. Focus on lean management, operational efficiency, and the restructuring of its wholesale business to better align with consumer trends have been driving the upside.

This polyester and nylon yarn maker is expected to post quarterly loss of $0.60 per share in its upcoming report, which represents a year-over-year change of -5.3%. Revenues are expected to be $145.2 million, down 2.6% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Unifi, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on UFI going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Unifi belongs to the Zacks Textile - Products industry. Another stock from the same industry, Albany International (AIN - Free Report) , closed the last trading session 0.9% lower at $63.42. Over the past month, AIN has returned -14.4%.

For Albany International, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.59. This represents a change of -34.4% from what the company reported a year ago. Albany International currently has a Zacks Rank of #4 (Sell).


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