US Foods experienced a decline in its earnings at a rate of 20.3% per year on average, according to Simply Wall St., a financial website. The consumer retailing industry’s average annual earnings growth is 10.2. Therefore, US Foods earnings are much lower than the industry average.
US Foods has a debt-to-equity ratio of 97.1%, as reported by Simply Wall St. This implies that it has slightly less debt than equity, which is the difference between its total assets of $13.03 Billion and total liabilities of $8.43 Billion. US Foods debt is $4.47 Billion, while its equity is $4.60 Billion.
Moreover, US Foods Holding Corp. (USFD) stock market capitalization is $10.158 Billion and the total revenue is $34.057 Billion. Moreover, the stock’s basic EPS is $1.91 and the price-to-earnings ratio is 22.97.
Technical Analysis of USFD Stock Price in 1-D Timeframe
The price action shows that US Foods Holding ( NYSE: USFD) stock price took support at $82.14 and has been on an inclining trend for the last six months, increasing by 13.02% making higher highs and higher lows.
At the time of writing, USFD stock is trading at around $41.14 and facing resistance around $44.42 and declining from the lower trendline and a bearish pattern might be forming which is a raising wedge pattern.
Therefore, if the USFD price fails to sustain the current level and drops, it might hit the nearest support levels of $39.97 and $37.21.
However, if it maintains the current level, the USFD prices could continue to move upward and reach the first and second resistances of $41.65 and $44.42.
At the time of publishing, US Foods Holding Corp. (NYSE: USFD) is trading below the 20 and the 50-day EMA (exponential moving averages), which rejects the USFD price trend.
Hence, the USFD price is expected to move downwards showing a bearish overview over the daily time frame chart.
The current value of RSI is 33.39 points. The 14 SMA is below the median line at 42.46 points which indicates that US Foods stock is in bearish territory and the RSI line took rejection from 14 SMA and is headed towards an oversold zone highlighting bearishness.
The MACD line at 0.3989 and signal line at 0.1427 are below the zero line and both lines have crossed each other. A bearish crossover is observed in the MACD oscillator which signals bearishness for the US Foods stock price.
Summary
US Foods Holding Corp. (NYSE: USFD) indicates that the investors and traders of the stock price are bearish on the 1-D time frame. The price action reflects a bearish outlook at the time of publishing. The technical analysis tools of US Foods stock price also supports bearishness. The MACD, RSI, and EMA highlight negative signals and imply that a downtrend may continue in US Foods stock price.
Technical Levels
- Support levels: The nearest support levels for US Foods stock price are $39.97 and $37.21.
- Resistance levels: The nearest resistance levels for the US Foods stock price are $41.65 and $44.42.
Disclaimer
In this article, the views and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/08/12/us-foods-stock-price-prediction-will-usfd-price-descend-further/