Business

Analysts were expecting Nash Finch Co. (NAFC) [Chart - News - Analysis] to report earnings of $1.04 for last quarter, but NAFC beat expectations with actual earnings of $1.17---13 cents above the consensus estimate.

If you compare last quarter's earnings to the $1. 0 the company made per share during the same quarter a year ago, you can see that NAFC’s earnings are up this year.

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Also, if you compare NAFC's 15.00% projected earnings-per-share (EPS) growth rate for the next five years with the projected EPS growth rate of 10.42% for the Food Wholesale industry as a whole during that same time frame, you can see that analysts expect NAFC to outperform the industry in the future---which is a good sign for the stock.

Drilling down a little deeper into the Food Wholesale industry, you can see how analysts believe NAFC will stack up against some of the other stocks in the industry, like United Natural Foods, Inc. (UNFI) [Chart - News - Analysis] and Sysco Corp. (SYY) [Chart - News - Analysis], in the future. Analysts believe UNFI's earnings are going to grow at a rate of 17.17% while SYY's earnings are going to grow at a rate of 9.75%.

Earnings season can be a volatile time in the stock market. Check out these videos and articles to be better prepared to take advantage of the large price moves that tend to accompany earnings announcements.

- Earnings Season is Here - Find Out How to Trade It

- Using Options to Trade Earnings

- Understanding Stock Analyst Research and Recommendations

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Competition in the Food Wholesale industry is starting to heat up, and a few stocks, like Sysco Corp. (SYY), are emerging from the pack.

Here's something to watch. Sysco Corp., Nash Finch Co. (NAFC) and United Natural Foods, Inc. (UNFI) are each affected by the same general fundamental forces that affect all of the companies in the Food Wholesale industry. However, if you dig down into the short interest for each stock and calculate their short-interest ratios, you will see that stock traders have more confidence in Sysco Corp. than they do in the other two.

Short-interest ratios tell you how long---on average---it will take short traders to cover their short positions on a particular stock. Take these three stocks for instance.

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Sysco Corp. has a current short ratio of 4.37. That means it would take approximately 4.37 days for traders to cover their short positions.

Nash Finch Co. has a current short ratio of 6.88. That means it would take approximately 6.88 days for traders to cover their short positions.

United Natural Foods, Inc. has a current short ratio of 9.74. That means it would take approximately 9.74 days for traders to cover their short positions.

Typically, the higher the short ratio, the more bearish traders are on a stock. So out of these three stocks in the Food Wholesale industry, Sysco Corp. seems to be in the best shape in the minds of traders and United Natural Foods, Inc. is in the worst shape.

Of course, stocks with too much short interest are always in danger of becoming the target of a short squeeze so make sure to watch for those stocks with high levels of short interest to suddenly take off on any signs of good fundamental or economic news.

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