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US Foods Holding Corp. (NYSE:USFD) is one of the best defensive stocks to buy amid geopolitical tensions. On June 1, Piper Sandler reiterated a Neutral rating on US Foods Holding Corp. (NYSE:USFD) and lowered the price target to $88 from $103.

The price target cut comes amid concerns that the retailer will feel the brunt of weak traffic in the chain-restaurant industry. Consequently, the research firm has reduced its organic case growth estimate while also increasing its discount rate assumption to 8.75% from 8.25% to align with distribution peers.

Amid the concerns, US Foods accelerated its year-over-year independent restaurant case growth in the first quarter as it also gained share with its target customer types. The company also posted a 15% adjusted diluted earnings per share growth of $0.78 amid a deteriorating macro environment. Net sales in the quarter were also up by 2.8% to $9.6 billion.

For the full year, US Foods is projecting net sales growth of 4% to 6%, with adjusted EBITDA growth of 9% to 13%. Earnings per share are also expected to grow by between 18% and 24%.

US Foods Holding Corp. (NYSE:USFD) is a massive food service distributor that supplies food and kitchen essentials to approximately 250,000 locations, including independent restaurants, healthcare facilities, hotels, and educational institutions.

While we acknowledge the potential of USFD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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