Unifirst Corporation (UNF - Free Report) currently seems to be a smart choice for investors seeking exposure in the uniform-related space. Solid fundamentals and positive revision in earnings estimates are reflective of healthy growth potential of the stock.
The Wilmington, MA-based company currently sports a Zacks Rank #1 (Strong Buy). It belongs to the Zacks Uniform and Related industry, which belongs to the broader Zacks Industrial Products sector.
The industry is currently placed in the top 17 % (with Zacks Industry Rank #44) of more than 250 Zacks industries. Notably, the top 50% of the Zacks-ranked industries tend to outperform the bottom 50% by a factor of more than 2 to 1.
Below we discussed why investing in Unifirst will be a smart choice.
Share Price Performance, Earnings Projections: Market sentiments seem to be working in favor of the company over time. Over the past three months, its shares have yielded 27.3% return compared with 20% growth recorded by the industry, while the sector witnessed a 3.9% decline.
We believe that impressive financial results helped in driving sentiments for the stock. The company beat earnings estimates by 44.71% in the third quarter of fiscal 2019 (ended May 2019). Also, its average earnings surprise was a positive 19.53% for the last four quarters.
For fiscal 2019 (ending August 2019), the company anticipates earnings per share of $8.75-$8.85, up from the previously mentioned $7.65-$7.90.
Further, its earnings estimates have been raised in the past 60 days. The Zacks Consensus Estimate for the company’s earnings is pegged at $8.58 for fiscal 2019 and $8.23 for fiscal 2020 (ending August 2020), reflecting 9.2% and 8.9% growth from the respective 60-day-ago figures.
Unifirst Corporation Price and Consensus