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United Natural Foods, Inc. (UNFI)

UNFI stock forecast: buy or sell

Close on Sep 25th, 2020
$17.91 0.01%
3 months performance
0.01%
Published: September 27th, 2020 - 01:39

UNFI stock outlook

  • United Natural Foods stock only moved 0.96% to close at $17.91 on the stock market today, after 4 consecutive sessions in negative.
  • From the chart point view, price is drawing an scaled downtrend since early August with lower tops and lower bottoms. this downtrend marked a -17.77% loss(from its highs at $21.78).
  • Northcoast Research published a strong buy rating for United Natural Foods on Wednesday, with a target of $25.00
  • United Natural Foods, Inc., together with its subsidiaries, distributes natural, organic, specialty, produce, and conventional grocery and non-food products in the United States and Canada.

Disclaimer:
The viewpoints contained in this post are personal and not recommendations for you to buy or sell shares. The author of this paper does not have an understanding of the specific conditions of the reader, his or her own finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are expressed for learning reasons only

UNFI stock charts

Should I buy United Natural Foods stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is UNFI stock a buy?

In the current situation of United Natural Foods there is not any eligible buy setup. This doesn't mean UNFI will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems

Should I sell United Natural Foods stock?

When you own a stock with some profit, it's really difficult to decide the good moment to sell and get your benefits. Just as when we have to buy shares, choosing when is appropiate time to sell is not a whimsical decision, and we must adhere our own trading strategy. We like very simple strategies to guide us on when is the best moment to sell our shares. Be aware that these strategies are not intended for shorting United Natural Foods stock

A golden rule is that you must never mantain an open trade that produces higher than expected losses by the time of purchase. The moment to sell your stock always has to be ruled by the stop-loss (automatic or manual)

Is it time to sell United Natural Foods stock?

In the current situation of United Natural Foods there is not any eligible sell setup, so United Natural Foods stock holders with operations in profit can keep their positions

Analysts' recommendations to buy or sell United Natural Foods stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last 30 days, just one brokerage rating was published for United Natural Foods

United Natural Foods ratings

Brokerage firmRating
Sep 23rd, 2020
Northcoast Research NeutralStrong buy

Technical analysis

United Natural Foods accumulates a price drop of -17.77% since its latest top early August at $21.78. The stock drew 2 consecutive lower tops

SMAs overview

Moving averages are simple tools for investors to measure market momentum. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

UNFI SMAs chart

Supports and resistances

Traders use supports and resistances to spot price points on a chart that may work as barriers, preventing the price of a stock to move in certain direction. A support level is a level where the price tends to stop as it falls. Price is more likely to "rebound" this level rather than break through it. However, if the price breaks down the support, it will probably continue falling until meeting another support level. On the other side, resistance levels are where the price tends to find opposition as it rises. Again, the price is more likely to "bounce off" at this level, and if it finally crosses this level, it will climb easily until it approaches the next resistance

The current resistances are:

  • R1: $18.81 (5.03% above)
  • R2: $19.24 (7.43% above)
  • R3: $19.25 (7.48% above)
  • The current supports are:

  • S1: $17.55 (-2.01% below)
  • S2: $16.73 (-6.59% below)
  • S3: $16.63 (-7.15% below)
  • Bollinger bands

    This is an indicator that was designed in the 1980s by John Bollinger. It consists of three lines that are outlined superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    UNFI RSI chart

    Relative strength index

    The Relative Strength Index is an oscillator-type indicator that measures price fluctuations to detect when the share or financial asset is oversold or overbought. Like other oscillation indicators, the RSI moves in a range from 0 to 100. The relative strength indicator is one of the best known and most widely used indicators, invented by J. Welles Wilder in 1978

    When the relative strength (RSI) moves for so long below 70 and above 30, without indicating moments of overbought and oversold, the indicator turns out to be of little use, and we are currently in one of these cases.

    UNFI RSI chart

    Earnings and financials

    United Natural Foods, Inc. (UNFI) published quarterly earnings of $1.40 per share, highly beating the Market consensus estimate of $1.14 per share. This quarterly report represents an earnings surprise of 22.81%. On the contrary, reported sales were $6.7 billion, consistent with the market estimates.

    This compares to earnings of $0.61 per share a year ago, so current EPS means an increase of 129.51%. Turnover grew a 11.87% on an annualized basis in the second-quarter, from $6.0B to $6.7B last quarter. United Natural Foods reported 3 year over year quarterly positive results, improving revenue by 184.94% from $2.3B on 2017-Q3.

    UNFI is presenting Q3 earnings report on Monday next week. Expected per-share earnings of %s for this quarter is $0.72. If you own or you are considering buying UNFI shares, be aware that the financial reporting day usually has a higher than usual volatility, and price can soar and sink with unsually low liquidity and not honouring your buy or stop-loss orders. Check company's website to confirm time and details on the earnings call and the earnings report.

    UNFI revenues and profits chart