For most of the last three years, shares of
United Natural Foods (Nasdaq:
UNFI)
have pretty consistently flummoxed value-oriented investors. While the
margins aren't great for this organic food distributor (nor for food
distribution in general), revenue and profit growth has continued to
support a pretty healthy valuation and a rising stock price. The market
may eventually realize that it's not "different this time" and that the
fundamentals of United Natural's business cannot support this valuation,
but that's been a money-losing thesis for skeptics so far.
Continue below:
http://stocks.investopedia.com/stock-analysis/2012/Premium-Foods-Not-Driving-Premium-Cash-Flow-For-United-Natural-UNFI-WFM-WMT-NAFC0606.aspx
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