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United Natural Foods, Inc. (UNFI) Hits Fresh High: Is There Still Room to Run?

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Have you been paying attention to shares of United Natural Foods (UNFI - Free Report) ? Shares have been on the move with the stock up 38.5% over the past month. The stock hit a new 52-week high of $40.28 in the previous session. United Natural has gained 46.6% since the start of the year compared to the 0.4% move for the Zacks Consumer Staples sector and the -7.1% return for the Zacks Food - Miscellaneous industry.

What's Driving the Outperformance?

The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on September 30, 2025, United Natural reported EPS of -$0.11 versus consensus estimate of -$0.27.

For the current fiscal year, United Natural is expected to post earnings of $1.9 per share on $32.56 in revenues. This represents a 167.61% change in EPS on a 2.44% change in revenues.

Valuation Metrics

While United Natural has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.

United Natural has a Value Score of A. The stock's Growth and Momentum Scores are D and A, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 21.1X current fiscal year EPS estimates, which is a premium to the peer industry average of 16.2X. On a trailing cash flow basis, the stock currently trades at 6.6X versus its peer group's average of 9.5X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making United Natural an interesting choice for value investors.

Zacks Rank

We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, United Natural currently has a Zacks Rank of #1 (Strong Buy) thanks to a solid earnings estimate revision trend.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if United Natural meets the list of requirements. Thus, it seems as though United Natural shares could have potential in the weeks and months to come.


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