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Tickers in this Group:
Navigating the Turbulence: Food Distributors Face a Challenging Week
๐ฝ๏ธ Group Food Distributors lose -5.01% in one week! ๐ฝ๏ธ โ Buy/Sell Ratings: Strong Sell! โ ๐ฎ Stocks in the group have a Negative Outlook ๐ฎ
Introduction
In the world of investment, few sectors are as essential as food distribution. These companies serve as the crucial link between food manufacturers and food service operators, ensuring that restaurants, cafeterias, and more have access to a diverse array of food items. However, the past week has presented a challenging landscape for food distributors, with a notable -5.01% drop. In this blog, we explore the intricacies of the Food Distributors sector, highlighting market movements and key players.
Industry Description
Food distributors play a pivotal role in the food supply chain. They bridge the gap between manufacturers and food service operators, making a wide range of food products accessible to the latter. Major companies like Sysco Corporation, US Foods Holding Corp., and Herbalife Nutrition Ltd. dominate this industry. Traditionally, food service operators relied on local and specialty distributors for daily or weekly supplies. However, the rise of e-commerce is shifting customer expectations towards lower prices, faster delivery, and higher quality, compelling distribution networks to adapt swiftly.
Market Cap
Across the Food Distributors Industry, the average market capitalization stands at approximately 4.6B. Market caps for individual companies within the sector range from 21.5K to 34.7B, with SYY leading at 34.7B and LFER at the lower end with 21.5K.
High and Low Price Notable News
The past week has witnessed considerable price movement within the Food Distributors Industry. On average, weekly prices fell by -2.16%. Looking further back, the monthly average showed a -6.26% decline, while the quarterly average remained relatively stable at 0.02%. Notably, COLFF experienced a substantial price increase of 3.26%, while HFFG saw the most significant decline at -11.63%.
Volume
Weekly volume statistics reveal a stark -61.88% drop in trading activity within the Food Distributors Industry. Similarly, monthly and quarterly averages show volume decreases of -52.1% and -70.25% respectively.
Fundamental Analysis Ratings
Fundamental analysis ratings provide insights into the sector's health, with ratings ranging from 1 (best) to 100 (worst). The industry presents a mixed picture:
Key Players
Within the Food Distributors Industry, significant players include Sysco Corporation (SYY), US Foods Holding Corp. (USFD), Herbalife Nutrition Ltd. (LFER), and more. These companies play critical roles in maintaining the flow of food products to food service operators.
The recent -5.01% dip within the Food Distributors sector underscores the challenges these companies face. As consumer expectations evolve in an e-commerce-driven landscape, adaptation is key. While the sector currently faces a negative outlook, opportunities for transformation and growth remain. Investors should carefully consider the evolving dynamics within the Food Distributors Industry in their investment strategies.
Ticker Descriptions
Let's take a closer look at some of the significant tickers within the Food Distributors Industry:
$UNFI - United Natural Foods, Inc.
$PFGC - Performance Food Group Company
$USFD - US Foods Holding Corp.
These ticker descriptions offer a snapshot of the recent performance and potential future trends of specific companies within the Food Distributors Industry. Investors should consider these factors when making investment decisions in this challenging market.
DIT saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on December 17, 2024. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 56 instances where the indicator turned negative. In of the 56 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
The 10-day RSI Indicator for DIT moved out of overbought territory on December 09, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 24 similar instances where the indicator moved out of overbought territory. In of the 24 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on December 17, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on DIT as a result. In of 116 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DIT declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
DIT broke above its upper Bollinger Band on December 05, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 60 cases where DIT's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
DIT moved above its 50-day moving average on December 19, 2024 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for DIT crossed bullishly above the 50-day moving average on December 05, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DIT advanced for three days, in of 217 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 159 cases where DIT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.044) is normal, around the industry mean (18.067). P/E Ratio (10.549) is within average values for comparable stocks, (62.917). DIT's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.517). DIT has a moderately low Dividend Yield (0.004) as compared to the industry average of (0.040). P/S Ratio (0.040) is also within normal values, averaging (1.519).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 70, placing this stock slightly better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. DITโs price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a distributor of wholesale consumer products
Industry FoodDistributors