US Foods (NYSE:USFD) Upgraded by Wall Street Zen to Strong-Buy Rating

Key Points

• US Foods has received an upgrade from a "buy" to a "strong-buy" rating by Wall Street Zen, indicating strong confidence in the stock's future performance.
• Analysts have raised their price targets for US Foods, with UBS Group increasing it from $84.00 to $96.00, reflecting positive sentiment across multiple firms.
• The company reported earnings of $1.19 per share, exceeding consensus estimates, alongside a net revenue of $10.08 billion for the last quarter, marking a year-over-year increase of 3.8%.

Wall Street Zen upgraded shares of US Foods (NYSE:USFD - Free Report) from a buy rating to a strong-buy rating in a research note issued to investors on Friday.

A number of other equities analysts also recently commented on the company. Citigroup initiated coverage on US Foods in a research note on Thursday, May 22nd. They issued a "buy" rating and a $95.00 target price for the company. Guggenheim boosted their price objective on US Foods from $80.00 to $88.00 and gave the stock a "buy" rating in a research report on Monday, August 11th. JPMorgan Chase & Co. boosted their price objective on US Foods from $82.00 to $85.00 and gave the stock a "neutral" rating in a research report on Wednesday, June 25th. UBS Group boosted their price objective on US Foods from $84.00 to $96.00 and gave the stock a "buy" rating in a research report on Monday, July 28th. Finally, Wells Fargo & Company reiterated an "overweight" rating and set a $87.00 price objective (up from $80.00) on shares of US Foods in a research report on Friday, August 8th. Two investment analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Buy" and a consensus target price of $81.27.

US Foods Stock Performance

USFD stock traded down $0.18 during midday trading on Friday, reaching $77.88. The company had a trading volume of 810,755 shares, compared to its average volume of 2,206,295. The company has a quick ratio of 0.73, a current ratio of 1.17 and a debt-to-equity ratio of 1.02. The stock has a 50 day moving average price of $79.96 and a 200 day moving average price of $73.40. US Foods has a fifty-two week low of $56.65 and a fifty-two week high of $85.11. The firm has a market capitalization of $17.54 billion, a PE ratio of 33.30, a P/E/G ratio of 1.10 and a beta of 1.39.

US Foods (NYSE:USFD - Get Free Report) last issued its earnings results on Thursday, August 7th. The company reported $1.19 EPS for the quarter, beating analysts' consensus estimates of $1.14 by $0.05. US Foods had a return on equity of 16.86% and a net margin of 1.43%.The company had revenue of $10.08 billion during the quarter, compared to the consensus estimate of $10.17 billion. During the same period in the previous year, the firm posted $0.93 earnings per share. US Foods's quarterly revenue was up 3.8% compared to the same quarter last year. US Foods has set its FY 2025 guidance at 3.764-3.874 EPS. Analysts anticipate that US Foods will post 3.59 earnings per share for the current year.

Insider Activity

In other US Foods news, EVP Dirk J. Locascio sold 7,500 shares of the firm's stock in a transaction dated Thursday, July 10th. The shares were sold at an average price of $80.00, for a total value of $600,000.00. Following the completion of the transaction, the executive vice president directly owned 115,077 shares in the company, valued at $9,206,160. This trade represents a 6.12% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Corporate insiders own 0.60% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Boston Partners increased its holdings in US Foods by 29.1% in the first quarter. Boston Partners now owns 16,457,351 shares of the company's stock worth $1,076,225,000 after buying an additional 3,713,345 shares during the last quarter. Wellington Management Group LLP increased its stake in shares of US Foods by 3.7% during the 1st quarter. Wellington Management Group LLP now owns 11,836,323 shares of the company's stock worth $774,806,000 after purchasing an additional 426,288 shares during the last quarter. Invesco Ltd. raised its holdings in shares of US Foods by 21.8% during the 1st quarter. Invesco Ltd. now owns 7,546,048 shares of the company's stock valued at $493,964,000 after purchasing an additional 1,350,034 shares in the last quarter. Massachusetts Financial Services Co. MA lifted its stake in shares of US Foods by 2.7% in the 2nd quarter. Massachusetts Financial Services Co. MA now owns 6,134,905 shares of the company's stock valued at $472,449,000 after purchasing an additional 161,749 shares during the last quarter. Finally, Geode Capital Management LLC boosted its holdings in US Foods by 1.3% in the second quarter. Geode Capital Management LLC now owns 3,986,397 shares of the company's stock worth $307,044,000 after purchasing an additional 52,361 shares in the last quarter. 98.76% of the stock is owned by hedge funds and other institutional investors.

US Foods Company Profile

US Foods Holding Corp., together with its subsidiaries, engages in marketing, sale, and distribution of fresh, frozen, and dry food and non-food products to foodservice customers in the United States. The company's customers include independently owned single and multi-unit restaurants, regional concepts, national restaurant chains, hospitals, nursing homes, hotels and motels, country clubs, government and military organizations, colleges and universities, and retail locations.