This article is for education purposes only, and not to be taken as advice to buy/sell. Please do your own due diligence before committing to any trade/investment.
The war in the Middle East continues. No one is backing down, as the countries involved continue to trade barbs and their military campaigns.
Global stock markets are shaken as the war enters its 3rd week, with no end in sight. It isn’t a good feeling.
But, is it all doom and gloom? After scanning the US stock market, I’ve found 1 stock that’s rising as the conflict drags on. It’s little wonder, given that this stock is defensive in nature, as it supplies fresh, frozen, and dry food and non-food products.
Are you ready for a deep dive into this stock and discover whether it’s ripe for a position trade?
Brief History of US Foods
Source: usfoods.com
US Foods was founded in 2007, born from an acquisition and rebranding exercise. The company sells food products (such as beef, poultry, seafood, fruits and vegetables, and eggs) and its related essentials (such as cookware and disposable cutlery).
Through strategic mergers and acquisitions, the company went through a period of modernization and grew its footprint.
Today, US Foods serves approximately 250,000 customers, including independent restaurants, hospitals, and hotels.
Shall we have a look at its financials?
Business Model and Financials
Source: tradingview.com
Let’s look at 2 key metrics from the image above – total revenue (in blue) and net income (in yellow).
Did you notice that the total revenue of US Foods rose every year from 2019 onwards except in 2020 (due to COVID-19)?
Overall, its total revenue has grown from $25.9b to $39.42b. That’s a remarkable 52% increase!
Has its net income grown alongside?
Its net income was more inconsistent, growing and shrinking quite dramatically especially during COVID-19. Its net income dipped slightly in 2024 but recovered impressively in 2025.
Are these strong enough reasons to buy its shares for a position trade?
Let’s analyze its share price before forming a conclusion whether it’s ripe to buy its shares for a position trade.
Technical Analysis on US Foods (NYSE: USFD)
Here’s the chart of US Foods’ shares.
Can you tell that its shares were in a downtrend (from Aug to late Nov 25) before turning into a super strong uptrend?
There’s no need to add a moving average or trendline. You can tell that this is an uptrend by comparing the number of blue (outline and solid) candles against those in red (outline and solid).
The share price is in an uptrend when there are more blue candles.
What would you want to do when a stock is in an uptrend?
You’ll want to look out for buying opportunities. And that’s what I’ll be doing here.
Without the need to plot support and resistance, I can tell whether the time to buy the shares of US Foods is ripe for a position trade.
How?
By looking at the 2 main proprietary indicators – the arrow and Trend Impulse Factor indicator.
Do you see a green arrow under the latest candle of US Foods’ shares? This tells me that this is a fresh bullish move.
But is this bullish move likely to be sustained?
Enter the Trend Impulse Factor indicator.
When the bar of the Trend Impulse Factor indicator is dark green in color, it suggests that this bullish move is likely to be sustained. Now, let’s have a look at the color of the Trend Impulse Factor indicator’s bar.
Hmm, it hasn’t turned dark green yet. Hence, it’s still early to buy its shares for a position trade. Nonetheless, I’ll keep US Foods on my watchlist because I think the time to buy its shares for a position trade could be near.
Conclusion
Source: pexels.com
It’s natural to panic and feel uneasy in times of great volatility and uncertainty. Before the war, President Donald Trump’s Liberation Day tariffs shook the world. Yet, we survived. There’s hope.
While others focus on oil-related stocks, I’m turning my focus to this defensive stock, US Foods, because it’s in a strong uptrend, proving its resilience.
Thanks to the TradersGPS (TGPS) system, I’m able to screen the US stock market and find this stock in under a minute.
Additionally, both the arrow and Trend Impulse Factor indicators have been tested and proven. They form the TradersGPS (TGPS) system to help you decipher if a stock is ripe for a position trade. You won’t have to feel in the dark and make wild guesses.
The TGPS system tells me that the time to buy its shares for a position trade isn’t here yet, but it’s worth to be kept for a lookout.
Will you be considering this defensive stock?
What are your thoughts?
Share your thoughts with me below!
