United Natural Foods stock outlook after guiding FY2022 results in line with expectations

On Wednesday, United Natural Foods Inc. (NYSE:UNFI) shares advanced by more than 11% after reporting its most recent quarterly results. The company announced its fiscal first-quarter 2022 revenue and earnings before markets opened, beating the consensus for analyst expectations. United Natural Foods also issued its FY2022 guidance in line with Street forecasts.

The company posted FQ1 non-GAAP earnings per share of $0.97, outperforming the average analyst estimate of $0.60. On the other hand, its GAAP EPS of $1.25 was higher than the expectation of $0.48, while revenue for the quarter edged higher by 4.5% from the same quarter in 2020 to $7 billion, exceeding the consensus Street forecast by $220 million.

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The company expects to post FY2022 revenue in the range of $27.8 billion to $28.3 billion, in line with the consensus of $28 billion. Its EPS forecast of $3.90-$4.20 also matches the Street expectation of $4.09.

UNFI stock still looks undervalued

From an investment perspective, United Natural Foods shares trade at a compelling forward P/E ratio of 12.35, making the stock an exciting option for value investors.

In addition, analysts expect its bottom line to improve by a whopping 143% this year, before growing by a further 7.82% next year. Therefore, the stock could also gain the attention of growth investors.

Technically, United Natural Foods stock seems to be trading within an ascending channel formation in the intraday chart. As a result, the stock has surged closer to the overbought conditions of the 14-day RSI, following Wednesday’s spike.

Therefore, investors could target technical pullbacks at about $51.82, or lower at $48.17, while $57.73 and $60.88 are crucial resistance zones.

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