The investment case for US Foods is being reinforced by substantial institutional backing and a favorable consensus among market analysts. The foodservice distributor has demonstrated resilience, supported by robust quarterly performance and a refined full-year outlook amidst a complex operating landscape.
Operational Performance Sets Foundation
Recent financial results provided tangible evidence of the company’s stability. For the third quarter of 2025, US Foods delivered figures that exceeded market expectations.
- Earnings per share (EPS) came in at $1.07, surpassing the consensus estimate by $0.02.
- Revenue climbed 4.8% year-over-year to $10.19 billion, also edging past forecasts.
Management subsequently fine-tuned its guidance for 2025. The projected revenue growth range is now 4% to 5%, narrowed from the prior 4% to 6%.
Analyst Sentiment: Predominantly Bullish
The analyst community maintains a largely optimistic stance on the stock. The consensus rating, derived from 13 research firms, is a “Buy.” This comprises two “Strong Buy” recommendations, ten “Buy” ratings, and a single “Hold.”
The average 12-month price target stands at $82.00, suggesting an approximate upside potential of 7.3% from the recent price of $76.39. While the overall view is positive, individual analysts have made recent adjustments:
Should investors sell immediately? Or is it worth buying US Foods?
- Barclays reaffirmed its “Overweight” rating but reduced its price target from $95.00 to $90.00.
- Conversely, Piper Sandler increased its target from $77.00 to $85.00, maintaining an “Overweight” recommendation.
- Sanford C. Bernstein reiterated its “Outperform” assessment.
Major Investment Firms Amplify Holdings
A clear vote of confidence has come from professional money managers who have been actively increasing their stakes. This trend indicates a strategic belief in the firm’s long-term trajectory.
- Artisan Partners Limited Partnership boosted its holdings by 12.4% in Q2, with its position now valued at $247 million.
- Thrivent Financial for Lutherans added 28,113 shares to its portfolio.
- Other entities, including Newbridge Financial Services and Lecap Asset Management, either established new positions or expanded existing ones.
Collectively, institutional investors control about 98.76% of the company’s outstanding shares. This exceptionally high level of ownership underscores widespread professional endorsement of its business model.
Valuation Metrics and Market Context
With a market capitalization near $17 billion, the stock trades at a P/E ratio of 31.83. Its PEG ratio of 1.02 points to a valuation that appears balanced relative to anticipated earnings growth. The stock’s beta of 1.03 indicates its price movements are closely aligned with the broader market.
Investor attention also noted a significant insider transaction on November 11: Director Steven Guberman sold 58,632 shares at an average price of $72.00, reducing his direct holdings by roughly one-third. Such moves are often monitored as potential signals of internal valuation perspectives.
Market participants are likely to await the release of fourth-quarter 2025 results for clearer evidence of the company’s progress toward its updated annual objectives.
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