Performance Food (PFGC) Shares Soar 3.04% on Strong Sales Growth

Performance Food (PFGC) shares surged 3.04% today, marking the second consecutive day of gains, with a total increase of 5.38% over the past two days. The stock price reached its highest level since February 2025, with an intraday gain of 4.67%.

The strategy of buying PFGC shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 7.56% annualized return and a 37.65% overall return. However, it underperformed the market by 1.44 percentage points and had a maximum drawdown of -10.22%, indicating it was not a robust strategy during market downturns.

Performance Food Group (PFGC) recently reported its third-quarter and first nine months fiscal 2025 results, which have significantly influenced its stock price. The company saw a total case volume increase of 10.0% and strong sales growth in the Foodservice segment. However, the Specialty segment experienced a slight decline. Despite these mixed results, PFGC's net sales for the first nine months increased by 7.6%, with gross profit improving by 12.1%.

The company announced third-quarter revenue of $15.3 billion, up 11% from the previous year. However, net income decreased by 17% due to higher expenses, resulting in a lower profit margin. Earnings per share (EPS) missed analyst estimates by 27%, leading to a downward revision of fiscal year 2025 guidance. Despite these challenges, the company's strong sales growth in the Foodservice segment has been a positive factor for investors.

Analysts have also weighed in on PFGC's performance. Jeffrey Bernstein from Barclays raised the price target for PFGC to $100.00, while Truist Securities adjusted their price target to $101.00 from $104.00. These adjustments reflect the analysts' confidence in the company's long-term prospects despite the recent challenges. Overall, PFGC's shares have seen a recent uptick, rising 2.8% from a week ago, indicating investor optimism in the company's future performance.