Key Takeaways The sector is down 1.7% this year, yet five stocks are highlighted for potential 2026 performance.PEP, MNST, LW, UNFI and OLLI are supported by strategic initiatives, demand trends and operational gains.All five companies show improving earnings estimates, pointing to strengthening outlooks for next year.Wall Street has maintained its impressive run seen over the last two years in 2025 as well. However, the consumer staples sector has failed to participate in this year’s rally. Year to date, t ...

Key Takeaways Macy's has surged 14.9% since its September upgrade, outpacing the S&P 500 over the same period.UNFI gained 32.4% after its Zacks Recommendation was raised to Outperform in mid-September.Monster Beverage advanced 10.3% in 12 weeks as part of the Earnings Certain Admiral Portfolio.Major U.S. indexes experienced choppy but relatively flat performance last week. The Nasdaq Composite, the S&P 500 and the Dow Jones Industrial Average all lost ground by 2.7%, 1.4%, and 0.5%, respectively. Volatility ...

Investors interested in Consumer Staples stocks should always be looking to find the best-performing companies in the group. United Natural Foods (UNFI) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Staples sector should help us answer this question.United Natural Foods is one of 183 companies in the Consumer Staples gr ...

Industry Overview - The Zacks Food-Miscellaneous industry is experiencing challenges due to inflation, cautious consumer spending, and soft foodservice demand, leading to volume pressures and increased competition from private labels [1][4] - Companies in this industry manufacture and sell a variety of food products, including cereals, sauces, bakery items, and organic foods, primarily through wholesalers, retailers, and foodservice channels [3] Market Trends - The food industry is under pressure from sticky inflation and cautious consumer spending, resulting in a shift towards value offerings and private-label products [4] - Companies are responding to these challenges by enhancing value-driven marketing, promotions, and offering affordable pack sizes to maintain market share [4] Cost and Margin Management - Cost inflation is impacting profitability, with persistent volatility in input costs, labor, and packaging compressing margins despite previous pricing actions [5] - Companies are focusing on productivity initiatives, including supply-chain optimization and manufacturing efficiency, to improve cost leverage and recover margins [5] Brand and Innovation - Strong brand equity is crucial in a competitive market, with leading companies investing in health-forward product development to meet evolving consumer preferences [6] - Demand for high-protein, low-sugar, and functional nutrition products is driving innovation and portfolio modernization, which helps strengthen customer loyalty and enhance pricing power [6] Industry Performance - The Zacks Food-Miscellaneous industry ranks 185, placing it in the bottom 23% of over 250 Zacks industries, indicating weak near-term prospects [7][8] - The industry has underperformed the S&P 500, declining 17.5% over the past year compared to the S&P 500's growth of 16.7% [9] Valuation - The industry is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 14.65X, lower than the S&P 500's 23.74X and the sector's 16.49X [12] Company Highlights - **Lamb Weston**: This company has a Zacks Rank of 1 (Strong Buy) and is focusing on operational efficiency and customer engagement, with a 9.4% increase in EPS estimates to $3.14 [15][16] - **United Natural Foods**: Also a Zacks Rank 1 company, it is experiencing growth in its natural segment, with a 9% increase in the fourth quarter of fiscal 2025 and a rise in EPS estimates from $1.53 to $1.90 [19][20] - **The J.M. Smucker**: This Zacks Rank 2 company is leveraging its diverse brand portfolio and strong coffee unit, with a slight increase in EPS estimates to $9.13 [21][22]

Core Points - United Natural Foods, Inc. (UNFI) will release its financial results for the first quarter of fiscal 2026 on December 2, 2025 [1] - The conference call to discuss the results will take place at 8:30 a.m. ET on the same day [1][2] - UNFI is a leading grocery wholesaler in North America, serving over 30,000 locations with a wide variety of products [3] Financial Performance - For the fourth quarter of fiscal 2025, UNFI reported net sales of $7.7 billion, reflecting a growth of 1.6% compared to the same period in fiscal 2024 [6] - The company experienced a net loss of $87 million, translating to a loss per diluted share (EPS) of $1.43 [6] - Adjusted EBITDA for the fourth quarter was $116 million, with an adjusted EPS of $(0.11) [6]

Industry Overview - The natural foods industry is transitioning from a niche market to a mainstream powerhouse, driven by increased consumer awareness regarding personal health and environmental impact [2] - Consumers are prioritizing clean eating, ethical sourcing, and sustainability, leading to a preference for natural and organic products [2][3] - Government actions, including stricter food labeling regulations, are supporting this shift away from heavily processed foods [3] Market Growth and Trends - The global healthy foods market is projected to reach $2.26 trillion by 2035, indicating significant growth potential [5] - Companies are investing in plant-based alternatives, functional foods, and sustainable farming technologies to meet evolving consumer demands [5] - E-commerce is enhancing accessibility to natural foods, allowing consumers to easily shop for organic and gluten-free products [5] Key Companies Vital Farms, Inc. (VITL) - Vital Farms focuses on transparency and ethical farming practices, resonating with consumers who value sustainability and high-quality nutrition [7] - The company is scaling its supply chain to meet rising demand, working with over 500 family farms and managing more than 9 million hens [8] - Vital Farms aims for $1 billion in net revenues by 2027, supported by retail expansion and innovative marketing strategies [9] United Natural Foods, Inc. (UNFI) - UNFI is the leading distributor of natural, organic, and specialty foods, with a focus on creating long-term value in a $90 billion market [10] - The company’s Natural segment grew by 9% in fiscal 2025, outpacing broader market trends [11] - UNFI is enhancing its technological capabilities to support supplier success and improve product availability [12] Conagra Brands, Inc. (CAG) - Conagra is modernizing its portfolio to align with consumer demand for natural and high-quality foods, particularly in frozen and snack categories [13] - The company is introducing more natural, high-protein, and minimally processed meals, with recent product launches aimed at attracting health-conscious consumers [14] - Conagra's strategy includes blending convenience with quality ingredients to sustain growth in the natural and organic segments [15]

Industry Overview - Health and fitness companies are experiencing consistent demand due to increasing global awareness of health issues and the significance of physical fitness, driven by rising lifestyle-related diseases and a focus on preventive healthcare [1][10] - The industry's growth is supported by diverse revenue streams, including subscriptions, product sales, and services, making it appealing to long-term investors [2] Company Highlights Doximity Inc. (DOCS) - Doximity is a cloud-based digital platform for medical professionals in the U.S., covering over 80% of U.S. doctors and 60% of advanced practitioners, with a 95% subscription-based revenue model [7] - The company is expanding in a total addressable market of $18.55 billion and has integrated generative AI, enhancing product stickiness and physician utility [8] - Doximity's AI tools have seen a 5x usage growth year-over-year, supporting physicians in managing clinical documentation [9] - Expected revenue and earnings growth rates are 11.2% and 7%, respectively, for the current year [11] Planet Fitness Inc. (PLNT) - Planet Fitness is a leading franchisor and operator of fitness centers in the U.S., benefiting from higher royalties, new club openings, and member acquisitions [12] - The company ended Q2 with approximately 20.8 million members and over 2,762 clubs, achieving an 8.2% year-over-year increase in same-club sales [13] - Expected revenue and earnings growth rates are 10.2% and 13.1%, respectively, for the current year [14] United Natural Foods Inc. (UNFI) - United Natural Foods has shown strong growth supported by wholesale momentum and demand for natural and organic products, with strategic initiatives driving efficiency and cost savings [15][16] - The company has an expected revenue growth rate of 2.5% and earnings growth rate of over 100% for the current year [17] Peloton Interactive Inc. (PTON) - Peloton is evolving from a connected fitness brand to a broader wellness platform, leveraging commercial partnerships to drive growth [18] - The company has seen momentum in its Peloton for Business segment, with partnerships enhancing brand visibility [19] - Expected revenue and earnings growth rates are -1.1% and over 100%, respectively, for the current year [21] Performance Food Group Co. (PFGC) - Performance Food Group markets and distributes a wide range of food products, serving various sectors including restaurants and healthcare facilities [23][24] - The company has an expected revenue growth rate of 6.4% and earnings growth rate of 11.2% for the current year [25]

Group 1: Company Overview - Service Corp. (SCI) is a member of the Consumer Staples group, which includes 184 companies and is currently ranked 16 in the Zacks Sector Rank [2] - Service Corp. has a Zacks Rank of 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] Group 2: Performance Metrics - Over the past three months, the Zacks Consensus Estimate for SCI's full-year earnings has increased by 1.9%, reflecting improved analyst sentiment [4] - Year-to-date, Service Corp. has returned 2.3%, outperforming the average gain of 1.2% for the Consumer Staples group [4] - In the Funeral Services industry, which includes 3 stocks, Service Corp. is performing better than the industry average return of 1.3% year-to-date [6] Group 3: Comparison with Peers - Another outperforming stock in the Consumer Staples sector is United Natural Foods (UNFI), which has returned 44.8% year-to-date and has a Zacks Rank of 1 (Strong Buy) [5] - The Food - Miscellaneous industry, to which United Natural Foods belongs, is currently ranked 196 and has declined by 9.3% year-to-date [6] Group 4: Investment Outlook - Both Service Corp. and United Natural Foods are expected to continue their solid performance, making them noteworthy for investors interested in Consumer Staples stocks [7]

Core Insights - Economic challenges are impacting both businesses and consumers, leading to store closures and job losses [1][2] - The average net profit margin for food retailers is extremely low at 1.7%, making it difficult for supermarkets to remain profitable [3] - United Natural Food, Inc. (UNFI) is closing four Shoppers Food supermarkets in Maryland as part of a strategy to address financial difficulties [4][5] Business Challenges - Many supermarket retailers and convenience store chains have faced declining sales, higher operational costs, and increased tariffs, resulting in closures and bankruptcies [2][3] - Traditional supermarkets are struggling to compete with digital rivals, further exacerbating their financial challenges [3] UNFI's Actions - UNFI is closing a total of eight Shoppers stores this fall to reorganize its business and improve financial stability [4] - The company plans to support employees affected by the closures by facilitating transfers to other locations [6][8] - The recent closures in Maryland follow previous closures of four additional Shoppers stores in the state [9]

Core Viewpoint - United Natural Foods (UNFI) has experienced a bearish trend recently, losing 6.2% over the past week, but the formation of a hammer chart pattern suggests a potential trend reversal as buying interest may be increasing [1][2]. Technical Analysis - The hammer chart pattern indicates a potential bottom in the stock price, suggesting that selling pressure may be exhausting [2][5]. - A hammer pattern forms when there is a small candle body with a long lower wick, signaling that bears may be losing control over the price [4][5]. - This pattern can occur across various timeframes and is utilized by both short-term and long-term investors [5]. Fundamental Analysis - There has been a recent upward trend in earnings estimate revisions for UNFI, which is a bullish indicator and correlates strongly with near-term stock price movements [7]. - The consensus EPS estimate for the current year has increased by 23% over the last 30 days, indicating that analysts expect better earnings than previously predicted [8]. - UNFI holds a Zacks Rank of 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks, which typically outperform the market [9][10].