5 Best Food Stocks to Buy Now

4. US Foods Holding Corp. (NYSE:USFD)

Number of Hedge Fund Shareholders: 39

US Foods Holding Corp. (NYSE:USFD) is one of the biggest foodservice distributors in the world, supplying fresh, frozen, dried, and non-food products to more than 250,000 customer locations. Its brands include Cross Valley Farms, Metro Deli, Molly’s Kitchen, Valu+Plus, and Roseli.

US Foods Holding Corp. (NYSE:USFD) grew sales and EBITDA by 15% and 11% respectively in Q2 and anticipates full year adjusted EBITDA of $1.25 billion at the mid-range of its guidance. The company is aiming to grow EBITDA to $1.7 billion by 2024. Margin expansion is also expected to improve next year as some of the company’s staffing headwinds ease.

Hedge funds bailed on US Foods Holding Corp. (NYSE:USFD) during the first half of 2018, but their ownership of the stock has remained relatively stable since. Scott Ferguson’s Sachem Head Capital is the most bullish hedge fund on USFD, owning 18.9 million shares and having 13F exposure to the stock of 17.5%.