- US Foods (USFD) hit a new 52-week high of $84.44 on July 17.
- The stock has a 100% technical “Buy” signal via Barchart and consistent price appreciation.
- USFD shares are up nearly 58% over the past year.
- Analyst sentiment is mostly bullish, but some advisory services are cautious, citing potential overvaluation.
Today’s Featured Stock:
Valued at $19.4 billion, US Foods (USFD) is a foodservice distributor. The company serves independent and multi-unit restaurants, healthcare and hospitality entities, and government and educational institutions.
What I’m Watching:
I found today’s Chart of the Day by using Barchart’s powerful screening functions. I sorted for stocks with the highest technical buy signals, superior current momentum in both strength and direction, and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. USFD checks those boxes. Since the Trend Seeker signaled a buy on May 5, the stock has gained 22.4%.
USFD Price vs. Daily Moving Averages:
Barchart Technical Indicators for US Foods:
Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.
US Foods shares hit a new all-time high on July 17, touching $84.44 in intraday trading.
- USFD has a 100% technical “Buy” signal.
- The stock recently traded at $83.77, above its 50-day moving average of $77.28.
- US Foods has a Weighted Alpha of +60.91.
- The stock has gained nearly 58% over the past year.
- USFD has its Trend Seeker “Buy” signal intact.
- US Foods is trading above its 20, 50 and 100-day moving averages.
- The stock made 16 new highs and gained 11.1% in the last month.
- Relative Strength Index is at 74.14%.
- The technical support level is $82.88.
Don’t Forget the Fundamentals:
- $19.4 billion market cap.
- Trailing price-earnings ratio of 27.38x.
- Revenue is projected to grow 5% this year and another 6.08% next year.
- Earnings are estimated to increase 19.86% this year and increase an additional 19.68% next year.
Analyst and Investor Sentiment on US Foods:
I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it’s hard to make money swimming against the tide.
It looks like Wall Street analysts are bullish, but some major advisory sites aren’t.
- The Wall Street analysts tracked by Barchart issued 13 “Strong Buy,” one “Moderate Buy,” and one “Hold” opinion on the stock.
- Value Line gives the company its highest rating based on the fact it’s continuing to take market share from its competitors.
- CFRA’s MarketScope rates the stock a “Sell” on its projections of slowing growth in the restaurant industry.
- Morningstar thinks the stock is 15% overvalued.
- 7,950 investors monitor the stock on Seeking Alpha, which rates the stock a “Buy.”
The Bottom Line:
US Foods currently has momentum and is hitting new highs.
I caution that USFD is volatile and speculative — use strict risk management and stop-loss strategies.
Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.
Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
