Zacks Research Downgrades US Foods (NYSE:USFD) to Strong Sell

US Foods (NYSE:USFD) was downgraded by analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report issued on Wednesday,Zacks.com reports.

Several other equities research analysts have also recently weighed in on the company. JPMorgan Chase & Co. reduced their price objective on US Foods from $98.00 to $90.00 and set a “neutral” rating for the company in a research report on Thursday, May 14th. Citigroup lowered their target price on shares of US Foods from $115.00 to $111.00 and set a “buy” rating on the stock in a research note on Friday, May 8th. Piper Sandler lowered their target price on shares of US Foods from $103.00 to $88.00 and set a “neutral” rating on the stock in a report on Monday, June 1st. Wall Street Zen cut US Foods from a “buy” rating to a “hold” rating in a report on Saturday, May 9th. Finally, BTIG Research cut their price target on US Foods from $110.00 to $105.00 and set a “buy” rating on the stock in a research note on Monday, May 11th. Ten investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, US Foods presently has a consensus rating of “Moderate Buy” and a consensus price target of $105.50.

US Foods Price Performance

NYSE USFD opened at $104.04 on Wednesday. The business’s fifty day moving average is $88.97 and its two-hundred day moving average is $87.85. The company has a debt-to-equity ratio of 1.16, a quick ratio of 0.70 and a current ratio of 1.14. The stock has a market capitalization of $22.91 billion, a P/E ratio of 35.03, a P/E/G ratio of 1.30 and a beta of 0.79. US Foods has a 1 year low of $69.88 and a 1 year high of $104.43.

US Foods (NYSE:USFD) last issued its earnings results on Thursday, May 7th. The company reported $0.78 EPS for the quarter, missing the consensus estimate of $0.82 by ($0.04). US Foods had a return on equity of 19.37% and a net margin of 1.71%.The business had revenue of $9.61 billion during the quarter, compared to analyst estimates of $9.66 billion. During the same period last year, the business earned $0.68 EPS. The business’s quarterly revenue was up 2.8% on a year-over-year basis. US Foods has set its FY 2026 guidance at 4.696-4.935 EPS. On average, research analysts forecast that US Foods will post 4.34 earnings per share for the current fiscal year.

Institutional Investors Weigh In On US Foods

Large investors have recently added to or reduced their stakes in the business. Price T Rowe Associates Inc. MD increased its stake in shares of US Foods by 412.9% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 4,165,611 shares of the company’s stock valued at $313,755,000 after purchasing an additional 3,353,396 shares during the last quarter. Bank of Montreal Can increased its holdings in US Foods by 8,056.1% in the fourth quarter. Bank of Montreal Can now owns 2,866,721 shares of the company’s stock worth $215,921,000 after purchasing an additional 2,831,573 shares in the last quarter. Norges Bank acquired a new position in US Foods in the fourth quarter valued at approximately $192,849,000. Wellington Management Group LLP boosted its stake in US Foods by 14.2% during the third quarter. Wellington Management Group LLP now owns 12,875,970 shares of the company’s stock worth $986,557,000 after acquiring an additional 1,599,033 shares in the last quarter. Finally, Sumitomo Mitsui Trust Group Inc. increased its position in US Foods by 9,713.4% in the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,243,456 shares of the company’s stock valued at $114,659,000 after buying an additional 1,230,785 shares in the last quarter. Institutional investors own 98.76% of the company’s stock.

US Foods Company Profile

US Foods (NYSE: USFD) is a leading foodservice distributor in the United States that supplies a wide range of products and services to professional food operators. The company provides fresh, frozen and dry food items as well as non-food restaurant supplies and kitchen equipment. Its customer base includes independent restaurants, multi-unit chains, healthcare and senior living facilities, hospitality businesses, government and educational institutions, and other foodservice operators.

Beyond commodity and branded food products, US Foods offers value-added solutions designed to help customers run their businesses.