USFD Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
US Foods Holding Corp (USFD) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company's strong financial performance, consistent growth in adjusted EBITDA and EPS, positive analyst sentiment, and strategic acquisitions make it a solid choice for long-term investment despite neutral technical indicators and insider selling activity.
The MACD histogram is negative (-0.812) but contracting, indicating a potential reversal. RSI is neutral at 50.56, and moving averages are converging, showing no clear trend. Key support is at 88.007, and resistance is at 95.547. Overall, the technical indicators suggest a neutral trend.
Strong financial performance in Q4 2025, with revenue up 3.26% YoY, net income up 178.79% YoY, and EPS up 192.86% YoY.
Positive analyst sentiment with multiple price target upgrades (e.g., UBS raised to $117, Citi to $118).
Hedge funds are significantly increasing their positions, with buying up 842.15% last quarter.
Strategic acquisitions like Shetakis to enhance market position.
Long-term growth projections: 5% CAGR in net sales, 10% in adjusted EBITDA, and 20% in adjusted EPS from 2025 to 2027.
Insiders are selling, with a 107.74% increase in selling activity over the last month.
Neutral technical indicators with no clear bullish signal.
Valuation concerns raised by Piper Sandler, which downgraded the stock to Neutral due to limited upside potential.
In Q4 2025, US Foods reported revenue of $9.8 billion, up 3.26% YoY, net income of $184 million, up 178.79% YoY, and EPS of $0.82, up 192.86% YoY. Adjusted EBITDA grew by 11%, and free cash flow increased to $960 million in 2025 from $833 million in 2024.
Analysts are overwhelmingly positive on USFD, with multiple upgrades and raised price targets. UBS has the highest target at $117, while Piper Sandler downgraded the stock to Neutral, citing valuation concerns. The consensus remains bullish with strong buy and outperform ratings from major firms.
