Zacks Investment Research downgraded
Nash Finch Company
) to a Zacks Rank #5 (Strong Sell) on Mar 19. Weak fourth quarter
2012 results, particularly due to sluggish Military segment
performance, resulted in the downgrade.
Why the Downgrade?
The company's fourth quarter proved to be weak considering the
financial results disclosed on Feb 28, 2013. Nash Finch's
adjusted earnings of 49 cents per share declined 49.5% from 97
cents per share in the year-ago period. Nash Finch's total sales
also fell 1.1% to $1.14 billion due to softness in Military
export sales. Sales also missed the Zacks Consensus Estimate of
Nash Finch's comparable sales declined 4.1% from the
prior-year quarter. The dip in comparable sales was due to
regular sale or closing of retail stores.
In addition, the company has been experiencing disappointing
results from its Military segment due to lower margins. In
addition, it faces extensive pressure from supermarket company
), which provides advanced facilities to commissaries like
employing military business consultants to ensure efficient and
accurate delivery of products, which further pressurizes Nash
Also, the earnings estimate for Nash Finch has gone down in
the last 30 days following the disappointing results. For 2013,
the Zacks Consensus Estimate declined 7.1% to $2.24 per share
while that for 2014 plummeted 17.3% to $1.87.
Other Stocks to Consider
Not all stocks are performing as poorly as Nash Finch. Other
retail and wholesale stocks with favorable Zacks Rank include
Green Mountain Coffee Roasters, Inc.
) carrying a Zacks Rank #1 (Strong Buy) and
Natural Grocers By Vitamin Cotta
) carrying a Zacks Rank #2 (Buy)
GREEN MTN COFFE (GMCR): Free Stock Analysis
NASH FINCH CO (NAFC): Free Stock Analysis
NATURAL GROCERS (NGVC): Free Stock Analysis
SUPERVALU INC (SVU): Free Stock Analysis
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