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Been looking at US Foods lately and there's actually something interesting happening here from a momentum perspective. The stock has been putting in some solid work - up 10.63% just last week while its industry peers basically flatlined. That's the kind of relative strength that catches my eye.
What really stands out is the bigger picture. Over the past quarter, USFD climbed 22.75%, and if you zoom out to the yearly chart it's up 34.87%. Compare that to the S&P 500 moving just 4.27% and 13.49% respectively, and you start to see why this stock is on the radar for momentum traders. Monthly performance tells a similar story - 15.22% versus the industry's 3.42%.
The volume picture looks healthy too. Trading around 3.4 million shares on the 20-day average, which means there's real participation behind these moves. That's important because price spikes without volume are basically noise.
What's catching analysts' attention is the earnings trajectory. In the past two months, four earnings estimates moved higher with none going lower for the full year. The consensus estimate got bumped from $4.61 to $4.81 in that 60-day window. Looking ahead to next fiscal year, we're seeing four upward revisions and zero downgrades. That kind of positive estimate revision is usually a solid tailwind for momentum plays.
So if you're thinking about momentum stocks in the food sector, US Foods is definitely worth watching. The combination of outperforming price action, positive earnings revisions, and solid volume makes this one of those names that could continue higher in the near term. Definitely keeping this on my watchlist.