15 Stocks with Buy Ratings that Hedge Funds Love

9. U.S. Foods Holding Corp. (NYSE:USFD)

No. of Hedge Funds: 67

Value of the hedge funds: $2.07 billion

Headquartered in Illinois, U.S. Foods Holding Corp. (NYSE:USFD) is a national food service distributor providing fresh meats, dairy, produce, pantry staples, and non-food supplies. Their customer base is comprised of restaurants, healthcare providers, and schools. The company operates over 70 distribution centers and a chain of Chef’Store outlets. U.S. Foods Holding differentiates itself from its competitors by providing tailored culinary solutions and tech-enabled ordering platforms.

U.S. Foods Holding Corp. (NYSE:USFD) has garnered a notable hedge fund interest at the end of Q4 2024, with 67 funds investing $2.07 billion. The company has surpassed its long-range plan targets by achieving revenue of $1.74 billion in 2024. The Q4 earnings results further indicated a 15th consecutive quarter of share gains with independent restaurants. Additionally, as part of its strategic initiatives, the company saved $230 million in the cost of goods and acquired IWC for $220 million. For 2025, the company expects a growth in its sales between 4% and 6% and a diluted EPS growth of 17% to 23%, thus gaining a positive outlook in the industry.

U.S. Foods Holding Corp. (NYSE:USFD) is backed by a consistent 2.96% EPS growth over five years. The steady performance alongside strong institutional backing has made it one of the stocks with a Strong Buy rating from analysts.