By MATTHEW GALGANI

For the second straight month, US Foods (USFD) did something artificial intelligence giant Nvidia (NVDA) also achieved. Both stocks made the latest list of new buys by the best mutual funds. And both are trading at or near their all-time highs.

After freshening up its stock chart by resetting its base count earlier this year, US Foods delivered a breakout on Thursday. Now the food services giant is preparing to unveil a host of food-service solutions at the Food Fanatics 2025 show in Las Vegas next month.

US Foods Serves Up Big Demand

Headquartered in Rosemont, Ill., US Foods partners with roughly 250,000 restaurants and food service operators. The company offers a comprehensive suite of e-commerce, technology and business solutions.

US Foods expects the two-day Food Fanatics 2025 show to bring together more than 5,000 food service operators, culinary professionals, vendors and industry experts. Themed "Every Second Counts," the company says the event will offer the "most all-encompassing" food services solutions in its history.

In the latest report on new buys by top funds, which comes out on Friday, these leading money managers scooped up over $252 million worth of the stock. That follows capital inflows of more than $275 million in the prior month's report.

Other signs of demand for the stock include a B+ Accumulation/Distribution Rating and a stellar 2.2 up/down volume ratio. For the latter metric, any number above 1.0 points to demand. US Foods more than doubles that. The stock has also seen five quarters of rising fund ownership.

Delivering Solid And Steady Growth

While US Foods does not generate the same kind of explosive numbers as high-flying growth stocks like Nvidia, its solid and steady track record of growth appeals to leading money managers.

Over the last eight quarters, sales growth has ranged from 2% to 8%. In the first quarter, the company posted a 4% rise in revenue to $9.4 billion. Analysts expect the company to surpass $10 billion in sales when it reports its second-quarter results in early August.

Bottom-line growth has ranged from 8% to 31% over the last eight quarters. In the first quarter, the company delivered 26% earnings growth to 68 cents per share. For the full year, Wall Street expects 21% earnings growth to $3.82 per share, followed by a 19% gain to $4.55 in 2026.

US Foods Joins Nvidia Near Record Highs

On Wednesday, Nvidia became the first company to reach a $4 trillion market valuation as shares blasted to a record high. While the market capitalization of US Foods stands at a "mere" $18.5 billion, its stock also trades right around its all-time high.

Boosted by the robust institutional demand noted earlier, US Foods continues to climb steadily above its rising 50-day moving average. Showing further technical strength, it also stands solidly above its 21-day exponential moving average.

On Wednesday, the stock rose 1.5% to enter buy range just past a 79.64 buy point in an early stage flat base. US Foods added to that gain on Thursday.

So as Nvidia stock grabs the lion's share of Wall Street's attention, hungry investors should also keep an eye on US Foods.

Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.

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Source: IBD