Read on for some of the key earnings reports to look out for in the week ahead:
United Natural Foods Inc (NYSE: UNFI)
United Natural Foods Inc (NYSE: UNFI) distributes natural foods and related products. The company offers natural products consisting of groceries and general merchandise, nutritional supplements, bulk and foodservice products, personal care items, perishables, and frozen foods. Altogether it sells more than 250,000 natural and organic brand name and private label products.
UNFI will report its Q4 earnings results on Tuesday, September 27. Analysts at FactSet expect EPS of $1.26 and sales of $7.34bn. Investors will be looking for an update on inflation, transportation, and labor costs.
Over the past year, United Natural Foods Inc (UNFI) has traded between $33.63 and $57.89. Today it trades at around $40.67. Year-to-date, UNFI stock is down by -17.08%, while the S&P 500 is down -21.65% over the same period.
Is UNFI a good investment? The UNFI share price has fluctuated wildly in the past year and is up 8% from last year but -30% below its 52-week high. Unfortunately, the company doesn't offer a dividend to keep investors committed. So, jaded investors may be losing faith.
However, United Natural Foods is doubling down on higher-margin products while aiming to boost profits, so loyal shareholders may witness a payoff if it can pull this off effectively. The company regularly beats EPS expectations so shareholders will be hoping for more of the same.
Cracker Barrel Old Country Store, Inc. (NASDAQ: CBRL)
Cracker Barrel Old Country Store, Inc (NASDAQ: CBRL) operates restaurants. The company provides various breakfast, lunch, and dinner dishes such as pancakes, sandwiches, fried chicken, and ice cream. Cracker Barrel Old Country Store serves customers throughout the United States.
Cracker Barrel Old Country Store (CBRL) reports its Q4 earnings on September 27. FactSet estimates have an EPS consensus of $1.38 and a sales consensus of $837m. Investors want to know how inflation is pressuring margins and if the company continues to profit.
Inflation could force restaurants to raise their prices, and a recession could cut the number of consumers eating out. Therefore, investors also want to know what forward guidance looks like.
Cracker Barrel's 5% dividend yield is undoubtedly keeping long-term investors loyal to the stock.
Over the past year, Cracker Barrel Old Country Store, Inc. (CBRL) has traded between $81.87 and $149.88. Today it trades at around $103.26.
Year-to-date, the CBRL stock is down by -21.55%, keeping in line with the S&P 500.
FactSet analysts have an Underweight rating on CBRL stock with a target share price of $98.67.
CBRL stock has a price-to-earnings ratio (P/E) of 18, while its price-to-book-value (P/BV) is 4.2.
Paychex, Inc. (NASDAQ: PAYX)
Paychex, Inc. (NASDAQ: PAYX) provides comprehensive payroll and integrated human resource and employee benefits outsourcing solutions for small to medium-sized businesses in the United States. The company's services range from calculating payroll and filing tax payments to administering retirement plans and workers' compensation.
The $42bn company reports fiscal 2023 Q1 earnings on Wednesday, September 28. FactSet estimates have an EPS consensus of $0.97 and a sales consensus of $1.18bn.
Paychex is integral to many businesses and achieved record financial results in FY22. Indeed, it was the company's best performance in the 50+ years since it was founded. Investors will be looking for signs of continued growth in earnings.
PAYX stock has a P/E of 31. Its price-to-book-value (P/BV) is 13.7, which is well above the industry benchmark of 4.83. PAYX stock comes with a dividend yield of 2.7%.
Investors can conclude that the stock may be overvalued going by these metrics. Indeed, FactSet analysts have a Hold rating on PAYX stock with a target share price of $128.16.
Over the past year, PAYX stock has traded between $106.55 and $141.92. Today it trades at around $117.61. Year-to-date, the Paychex stock price is down by -12.56%.
Last year, the company enjoyed sales growth of around 14% but guidance for the coming year is 7% to 8% as economic headwinds are likely to affect many of the businesses it services.
Nevertheless, Paychex has proven itself resilient through prior economic downturns and is likely to weather the storm. Plus, its dividend will keep investors focused on the longer term.
Cintas Corporation (NASDAQ: CTAS)
Cintas Corporation (NASDAQ: CTAS) designs, manufactures and implements corporate identity uniform programs. The company also provides entrance mats, restroom supplies, promotional products, document management, fire protection, and first aid and safety services.
Cintas reports fiscal 2023, Q1 earnings for the quarter that ended August 2022. FactSet estimates have an EPS consensus of $3.13 and a sales consensus of $2.08bn. Investors will be looking for reassurance that it's continuing to grow and any warning signs of weakness.
Cintas is a high-quality business leader in the uniform rental and commercial facilities industry. The $39bn company is trading at a premium as it's the sort of business that can survive a downturn. However, it has grown through acquisition and doesn't appear to have much opportunity to expand internationally.
CTAS stock has a P/E of 33.4. Its price-to-book-value (P/BV) is 12, which is well above the industry benchmark of 6.65. CTAS stock comes with a dividend yield of 1.2%.
Over the past year, CTAS stock has traded between $343.86 and $461.44. Today it trades at around $388.77. Year-to-date, the Cintas Corp stock price is down by -8.33%, beating the S&P 500.
FactSet analysts have a consensus Overweight rating on CTAS stock with a target share price of $442.27.
Rite Aid Corporation (NYSE: RAD)
Rite Aid Corporation (NYSE: RAD) operates a retail drugstore chain in various states and the District of Columbia. The company sells prescription drugs, as well as other products such as health and beauty aids, non-prescription medications, and cosmetics.
Rite Aid reports its fiscal 2023 Q2 earnings on September 29. FactSet estimates have an EPS consensus of -$0.50 and a sales consensus of $5.7bn. As its Q1 results fell far below expectations, investors will be hoping for improvement this time round.
Nevertheless, it is operating in challenging times. The drugstore business is highly competitive, it faces litigation concerning its role in the opioid epidemic, and the slowing economy could reduce impulse purchases in-store.
Over the past year, Rite Aid Corporation has traded between $4.68 and $16.30.
Today it trades at around $6.86. Year-to-date, the Rite Aid stock price is down by -52.89%. This drop in the share price could make it more attractive, particularly for traders looking to make money off a quick trade in the event of a short squeeze or for investors banking on a potential takeover scenario.
FactSet analysts have a Sell rating on RAD stock with a target share price of $6.33.
RAD stock does not offer a shareholder dividend.
