2025-01-06 11:25:00 ET
Summary
- Despite recent gains, I maintain a 'hold' rating for Performance Food Group due to its mixed financial results and relatively high valuation compared to peers.
- The company's recent acquisition of Cheney Brothers is expected to significantly boost revenue and EBITDA, but increased operating costs and interest expenses have impacted net income.
- Management's revenue and EBITDA forecasts for 2025 are promising, yet the stock remains slightly expensive relative to similar firms.
- My initial downgrade may have been premature, but without a sufficient margin of safety, an upgrade to 'buy' isn't justified.
For about 17 years now, I have been an active investor. In that time, I have come to conclude that there is no such thing as the perfect investment strategy. However, I would say that the closest to being perfect would be value investing. Even it, however, has its weak spots though. For instance, one thing that I find that I do all too often is downgrade stocks too soon. This is especially true when their share prices are rising nicely. A good example of this can actually be seen by looking at a food distributor by the name of Performance Food Group Company ( PFGC )....
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Performance Food Group Company: I'm Sticking To My Guns
