Are You a Momentum Investor? This 1 Stock Could Be the Perfect Pick

Zacks
2024-12-18

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Is This 1 Momentum Stock a Screaming Buy Right Now?

Different than value or growth investors, momentum-oriented investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

United Natural Foods (UNFI)

Headquartered in Providence, RI, United Natural Foods, Inc. is the leading distributor of natural, organic and specialty food and non-food products in the U.S. and Canada. The company offers approximately 250,000 products, consisting of national, regional and private label brands, grouped into the following main product categories — grocery and general merchandise; perishables; frozen foods; wellness and personal care items; and bulk and foodservice products.

UNFI is a Zacks Rank #1 (Strong Buy) stock, with a Momentum Style Score of A and VGM Score of A. Shares are down 5% over the past one week and up 28.9% over the past four weeks. UNFI has gained 71.7% in the last one-year period as well. Looking at trading volume, an average of 820,452 shares exchanged hands over the last 20 trading days.

Momentum investors don't just pay attention to price changes; positive earnings play a crucial role, too. Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.08 to $0.72 per share. UNFI boasts an average earnings surprise of 553.1%.

With strong earnings growth, a good Zacks Rank, and top-tier Momentum and VGM Style Scores, investors should think about adding UNFI to their portfolios.

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United Natural Foods, Inc. (UNFI) : Free Stock Analysis Report

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Zacks Investment Research

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