139.93 -2.2 (-1.58%) Sell

The party never started for UNF investors as it significantly underperforms

13 min read

UNIFIRST CORP significantly underperformed today. It returned -1.58% to close at 139.93. During the last week it returned -0.47% and saw a maximum drawdown of -1.73% before bouncing back.

[Themes containing UNF]

UNF is currently in a down trend. Over the last three months 2 bearish signals have generated a profit of +12.94% for investors.


UNF has been underperforming the SP500 index in recent time, after having outperformed till 12 Jul, 2018. Over the last 2 years 11 months and 10 days, UNF outperformed the SP500 index on 54% days.

During the last three months UNF was mostly loss making and delivered on average -0.39% per day. It's best return during this period (of +3.32%) was on Wednesday, 28 Nov, 2018. While it's worst loss in the same period (of -6.92%) was on Wednesday, 17 Oct, 2018. There was initially a bullish trend during this period which started on 13 Nov, 2018 and went on till 16 Nov, 2018. The bullish trend returned +2.92% to investors. This was followed by a bearish trend that started on 4 Dec, 2018 and ended on 11 Dec, 2018. This bearish trend lost -10.62% of investor capital.

On monthly basis, UNF delivered losses in more months over the last year, than profits. UNF delivered profits less regularly than SP500 index. UNF was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -12.25% compared to -7.28% returned by SP500 index in Oct 2018. UNF had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both UNF and SP500 index significantly outperform during months when quarterly/annual results are announced.

"I'm involved in the stock market, which is fun and, sometimes, very painful.

UNF is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in UNF's volatility from 27 Sep, 2018 to 7 Dec, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that UNF has significant positive skewness in it's return distribution. This indicates that investors can expect UNF to recover from drawdowns quickly. Which makes UNF a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

SP500 index has more chance of extreme outcomes than UNF. Therefore, SP500 must receive a lower allocation than UNF in your portfolio. SP500 index usually has shorter drawdown period than UNF.

On a general note (since you are interested in UNF), three instruments that deserve special mention are AMRH, APRN and AYTU. They have all outperformed the market and must be closely watched for investment opportunities.

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