Taking the lead: US Foods Holding Corp. (USFD)

US Foods Holding Corp. (NYSE: USFD) stock fell -3.16% on Friday to $28.77 against a previous-day closing price of $29.71. With 1.02 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.42 million shares. During the session, the Food Distribution company that operates in wider Consumer Defensive sector, reached to the highest price of $29.88 whereas the lowest price it dropped to was $28.74. The 52-week range on USFD shows that it touched its highest point at $39.73 and its lowest point at $27.48 during that stretch. It currently has a 1-year price target of $42.80. Beta for the stock currently stands at 1.38.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of USFD was down-trending over the past week, with a drop of -4.23%, but this was down by -7.07% over a month. Three-month performance surged to 2.02% while six-month performance fell -22.18%. The stock lost -15.11% in the past year, while it has lost -17.40% so far this year. A look at the trailing 12-month EPS for USFD yields 0.70 with Next year EPS estimates of 2.73. For the next quarter, that number is 0.61. This implies an EPS growth rate of 146.60% for this year and 24.91% for next year. EPS is expected to grow by 28.55% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -12.20%.

Float and Shares Shorts:

At present, 224.00 million USFD shares are outstanding with a float of 215.97 million shares on hand for trading. On Jul 14, 2022, short shares totaled 4.23 million, which was 1.89% higher than short shares on Jun 14, 2022. In addition to Mr. Robert M. Dutkowsky as the firm’s Exec. Chairman, Mr. Andrew E. Iacobucci serves as its Interim Chief Exec. Officer.

Institutional Ownership:

Through their ownership of 102.21% of USFD’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 51.89% of USFD, in contrast to 44.31% held by mutual funds. Shares owned by individuals account for 18.91%. As the largest shareholder in USFD with 9.15% of the stake, The Vanguard Group, Inc. holds 20,553,198 shares worth 20,553,198. A second-largest stockholder of USFD, Sachem Head Capital Management LP, holds 18,932,877 shares, controlling over 8.43% of the firm’s shares. Fidelity Management & Research Co is the third largest shareholder in USFD, holding 18,520,700 shares or 8.25% stake. With a 2.95% stake in USFD, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 6,633,381 shares are owned by the mutual fund manager. The Vanguard Small Cap Index Fund, which owns about 2.52% of USFD stock, is the second-largest Mutual Fund holder. It holds 5,668,483 shares valued at 173.57 million. John Hancock III – Disciplined Va holds 2.24% of the stake in USFD, owning 5,029,031 shares worth 153.99 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for USFD since 17 analysts follow the stock currently. There are 10 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 3 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With USFD analysts setting a high price target of $50.00 and a low target of $36.00, the average target price over the next 12 months is $42.80. Based on these targets, USFD could surge 73.79% to reach the target high and rise by 25.13% to reach the target low. Reaching the average price target will result in a growth of 48.77% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. USFD will report FY 2022 earnings on 02/14/2023. Analysts have provided yearly estimates in a range of $2.27 being high and $2.05 being low. For USFD, this leads to a yearly average estimate of $2.19. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. US Foods Holding Corp. surprised analysts by -$0.01 when it reported $0.67 EPS against a consensus estimate of $0.68. The surprise factor in the prior quarter was $0.14. Based on analyst estimates, the high estimate for the next quarter is $0.67 and the low estimate is $0.55. The average estimate for the next quarter is thus $0.61.

Summary of Insider Activity:

Insiders traded USFD stock several times over the past three months with 0 Buys and 1 Sells. In these transactions, 0 shares were bought while 2,418 shares were sold. The number of buy transactions has increased to 45 while that of sell transactions has risen to 33 over the past year. The total number of shares bought during that period was 822,367 while 423,006 shares were sold.

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