Performance Food Group stock shot up nearly 5% Friday amid reports that US Foods is interested in buying its rival.
The combination would create a food delivery behemoth, combining the Nos. 1 and 2 in the industry, with roughly $100 billion combined annual sales. Performance Food stock continued ascending Monday.
Also on Monday, the Relative Strength (RS) Rating for Performance Food stock rose into a higher percentile, with a rise from 79 to 85. The 85 RS Rating shows that Performance Foods stock outperformed 85% of all stocks, regardless of industry, over the last 52 weeks.
The RS Rating upgrade is a major step up. Market research reveals that the stocks that go on to make the biggest gains typically have an 80 or better RS Rating as they launch their biggest price moves.
Among its other key ratings Performance Foods
Performance Foods last quarter reported a 1% dip in EPS to 79 cents per share on a 10% rise in revenue to $15.3 billion. The prior three periods the Richmond, Va.-based company recorded EPS gains of 27%, 1% and 9%.
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Performance Food Group is now considered extended and out of buy range after clearing a 92.44 buy point in a second-stage consolidation. See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks-tight or pullback to the 50-day or 10-week moving average.
Earnings growth dropped last quarter from 9% to -1%, but revenue rose from 9% to 10%. Keep an eye out for the company's next round of numbers on or around Aug. 13.
Performance Foods earns the No. 2 rank among its peers in the Wholesale-Food industry group. US Foods is the No. 1-ranked stock within the group.
IBD's unique Relative Strength Rating measures market leadership by showing how a stock's price action over the last 52 weeks measures up against that of other stocks on the major indexes.
This article was created automatically with Stats Perform's Wordsmith software using data and article templates supplied by Investor's Business Daily. An IBD journalist may have edited the article.
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