5 Best Food Stocks to Buy Now

Below we present the list of 5 Best Food Stocks to Buy Now. For our methodology and a more comprehensive list please see 10 Best Food Stocks to Buy Now.

5. Performance Food Group Company (NYSE:PFGC)

Number of Hedge Fund Shareholders: 37

Performance Food Group Company (NYSE:PFGC) sells a wide range of food products to restaurants, retailers, and other institutions. The company’s leading brands include Heritage Ovens baked goods, Village Garden salad dressings, Braveheart 100% Black Angus beef, and Ascend Beverages.

Performance Food Group had an outstanding fiscal 2021, growing revenue by 21% and earning $0.56 in adjusted EPS, $1.42 better than its 2020 performance. That trend continued in FY22, with sales growing to $50.9 billion. The company expects to grow its adjusted EBITDA by $200 million at the mid-range of its estimate in its fiscal 2023, to $1.2 billion.  BMO Capital analyst Kelly Bania raised her price target on PFGC to $70 from $61 following the latest quarterly results and is bullish on the company’s projected margin expansion during FY23.

Hedge fund ownership of Performance Food Group Company (NYSE:PFGC) jumped by 28% during the second quarter, with Brian Scudieri’s Kehr’s Ridge Capital and Anand Parekh’s Alyeska Investment Group among the funds building new stakes in PFGC during the quarter.

Another fund that’s bullish on Performance Food Group Company (NYSE:PFGC) is the ClearBridge Investments Select Strategy, which had this to say about the company in its Q4 2021 investor letter:

“Performance Food Group is another example of a quality franchise bought during a depressing period for the foodservice industry that has flexed its balance sheet to make acquisitions of weaker players and continues to consolidate its leading market share.”