Unifirst Story

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UNF -- USA Stock  

USD 218.97  0.89  0.40%

Unifirst is scheduled to announce its earnings today. The next earnings report is expected on the 7th of April 2021. As some millenniums are still trying to avoid industrials space, I will try to digest Unifirst a little further in order to understand its potential as a viable investment. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over a week ago
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What is February outlook for Unifirst (NYSE:UNF)?
Unifirst has performance score of 5 on a scale of 0 to 100. The entity has a beta of 1.043, which indicates a somewhat significant risk relative to the market. Let's try to break down what Unifirst's beta means in this case. Unifirst returns are very sensitive to returns on the market. As the market goes up or down, Unifirst is expected to follow. Although it is extremely important to respect Unifirst current price movements, it is better to be realistic regarding the information on equity historical returns. The philosophy towards measuring future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By inspecting Unifirst technical indicators, you can presently evaluate if the expected return of 0.17% will be sustainable into the future. Unifirst right now has a risk of 2.25%. Please validate Unifirst semi variance, and the relationship between the treynor ratio and daily balance of power to decide if Unifirst will be following its existing price patterns.
What is the right price you would pay to acquire a share of Unifirst? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor page.

What is happening with Unifirst this year

Annual and quarterly reports issued by Unifirst are formal financial statements that are published yearly and quarterly and sent to Unifirst stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934. Companies such as Unifirst often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

How Unifirst utilizes its cash?

To perform a cash flow analysis of Unifirst, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Unifirst is receiving and how much cash it distributes out in a given period. The Unifirst cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Unifirst Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 282.14 Million

Is Unifirst a risky opportunity?

Let's check the volatility. Unifirst is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Unifirst (NYSE:UNF) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. purchasing a share of an Unifirst stock makes you a part-owner of that company.

Unifirst Current Consensus

Here is the latest trade recommendation based on an ongoing consensus estimate among financial analysis covering Unifirst. The Unifirst consensus assessment is calculated by taking the average estimates from all of the analysts covering Unifirst

Strong Buy
1
Hold
3
Strong Buy125.0
Buy00.0
Hold375.0
Sell00.0
Strong Sell00.0

Some Unifirst technical indicators suggest throwback

Market risk adjusted performance is down to 0.18. It may indicate a possible volatility dip. Unifirst currently demonstrates below-verage downside deviation. It has Information Ratio of 0.03 and Jensen Alpha of 0.06. However, we do advice investors to further question Unifirst expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Final Takeaway

Although some companies under the specialty business services industry are still a bit expensive, Unifirst may offer a potential longer-term growth to shareholders. While some shareholders may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Unifirst.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Unifirst. Please refer to our Terms of Use for any information regarding our disclosure principles.

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