While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these ...

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a great growth stock is not easy at all.In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Sty ...

US Foods (USFD) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Since a changing e ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and ...

Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher."Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves a ...

Investors in US Foods Holding Corp.(USFD) need to pay close attention to the stock based on moves in the options market lately. That is because the Dec 20, 2024 $22.50 Put had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could ...

Financial Data and Key Metrics - Adjusted EBITDA grew by 13% YoY, with a 27 basis point expansion in adjusted EBITDA margin to 4.7% [8][22] - Adjusted diluted EPS increased by 21.4% to $0.85, driven by strong free cash flow deployment towards share repurchases [24] - Net sales increased by 6.8% to $9.7 billion, driven by a 3.8% growth in total case volume and a 3% impact from food cost inflation and mix [22] - Free cash flow for the first nine months of the year was $658 million, supported by disciplined working capital management [26] Business Line Performance - Independent restaurant case volume grew by 4.1%, marking the 14th consecutive quarter of market share gains [8][22] - Healthcare volume growth remained strong at 5.7%, while hospitality growth accelerated to 3% [22] - Pronto, the small truck delivery service, is now live in 40 markets and is expected to deliver nearly $700 million in annualized sales this year [16] Market Performance - The Southeast region experienced a nearly 100-basis point headwind to independent volume growth due to hurricane impacts [10] - Excluding the Southeast, organic independent volume growth was modestly higher than the second quarter growth rate [10] - Monthly foot traffic was down approximately 3.5% for the third quarter but improved sequentially throughout the quarter [10] Strategic Initiatives and Competitive Positioning - The company is focused on four strategic pillars: culture, service, growth, and profit [12][14][16][18] - Descartes Routing technology is now live in 15 markets, with plans to expand to 11 more by year-end, improving distribution productivity [14] - The company is actively exploring strategic alternatives for its CHEF'STORE business and has begun discussions with potential buyers [19] Management Commentary on Operating Environment and Outlook - Management highlighted the challenging macro environment and hurricane impacts but expressed confidence in the company's ability to control controllable factors [8] - The company updated its 2024 guidance, expecting net sales of $37.7 billion to $38 billion, adjusted EBITDA of $1.72 billion to $1.74 billion, and adjusted diluted EPS of $3.05 to $3.15 [29] - Management remains confident in achieving the 2025-2027 long-range plan, which includes a 5% sales growth CAGR, 10% adjusted EBITDA growth CAGR, and 20% adjusted diluted EPS growth CAGR [33] Other Important Information - The company repurchased $580 million worth of shares in Q3 and an additional $160 million in Q4, with $238 million remaining under its $1 billion share repurchase program [9][27] - The company issued $500 million in senior notes due 2033 at 5.75% to address debt maturities and capture $9 million in annualized interest savings [28] Q&A Session Summary Question: Private Label Penetration and Independent Restaurant Trends - Private label penetration is at 52%, with strong adoption across customer types, particularly independent restaurants [35] - Independent restaurant case growth accelerated by over 100 basis points after hurricane impacts subsided, with similar improvements in chain and healthcare volumes [36] Question: Guidance and P&L Performance - The company is guiding to the high end of its full-year EBITDA range, driven by strong execution across the P&L, including gross profit expansion and operating expense productivity [38][39] Question: Salesforce Growth and Productivity - Salesforce growth is running in the mid-single digits, with strong new account generation and some green shoots in penetration trends [42] - Warehouse productivity improved by 3.5%, with further gains expected as the company continues to roll out UMass technology [44][45] Question: COGS Initiatives and Vendor Collaboration - The company expects to deliver $230 million in COGS savings from 2022-2024, with strong vendor collaboration supporting future savings [49][50] Question: Healthcare and Hospitality Pipeline - The healthcare and hospitality pipelines remain strong, with $100 million in annualized sales onboarded during the quarter [51][52] Question: Descartes Rollout and Hospitality Demand - The Descartes rollout is progressing well, with half of the company's miles expected to be on the system by year-end [54] - Hospitality demand was impacted by hurricanes but showed improvement as the quarter progressed [55] Question: Case Growth and Share Repurchase Cadence - Total case growth for 2024 is now expected to be 4%-4.5%, with hurricane impacts and softer foot traffic contributing to the adjustment [57][58] - Share repurchases are expected to be front-end loaded, with the company toggling between M&A and buybacks based on opportunities [63][64] Question: Pronto Business and Productivity Gains - Pronto is expected to contribute $700 million in annualized sales, with 20% of that being incremental [78] - Productivity gains are expected to continue within the 3%-5% range, driven by supply chain and administrative efficiencies [71] Question: Salesforce Compensation and Indirect Cost Savings - Salesforce compensation changes have been well-received, with increased variable pay driving desired performance outcomes [73][74] - The company is on track to achieve $60 million in indirect cost savings by 2027 [75] Question: Local Case Volume Assumptions - The company remains confident in its ability to achieve 5%-8% case growth, even if market growth is in the 1%-2% range [85][86]

Third Quarter Fiscal Year 2024 Results November 7, 2024 Disclaimer Page Cautionary Statements Regarding Forward-Looking Information Statements in this presentation which are not historical in nature are "forward-looking statements" within the meaning of the federal securities laws. These statements often include words such as "believe," "expect," "project," "anticipate," "intend," "plan," "outlook," "estimate," "target," "seek," "will," "may," "would," "should," "could," "forecast," "mission," "strive," "mo ...

US Foods (USFD) came out with quarterly earnings of $0.85 per share, beating the Zacks Consensus Estimate of $0.82 per share. This compares to earnings of $0.70 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.66%. A quarter ago, it was expected that this company would post earnings of $0.94 per share when it actually produced earnings of $0.93, delivering a surprise of -1.06%.Over the last four quarters, the company has surp ...

Exhibit 99.1 INVESTOR CONTACT: MEDIA CONTACT: Mike Neese Sara Matheu (847) 232-5894 (773) 580-3775 Michael.Neese@usfoods.com Sara.Matheu@usfoods.com US Foods Reports Third Quarter Fiscal Year 2024 Earnings Grew Net Sales 6.8% to $9.7 Billion and Gross Profit 8.1% to $1.7 Billion Increased Net Income 55.8% to $148 Million Grew Adjusted EBITDA 13.2% to $455 Million and Expanded Adjusted EBITDA Margin 27 Basis Points Repurchased $580 Million of Shares ROSEMONT, Ill. (BUSINESS WIRE) November 7, 2024 – US Foods ...