Here's Why Performance Food Group Company (PFGC) Rose in Q3

ClearBridge Investments, an investment management company, released its “ClearBridge Mid Cap Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In an environment of shifting monetary policy, stabilizing earnings, and improved sentiment, midcaps experienced growth in the third quarter. The Federal Reserve’s decision to cut rates helped small and mid-cap stocks in the quarter. Value stocks outperformed their growth counterparts with the Russell Midcap Value Index returning 6.2% compared to the Russell Midcap Growth’s 2.8% return. In this environment, the strategy outperformed its Russell Midcap Index during the third quarter. Stock selection in the consumer staples and healthcare sectors drove outperformance of the strategy. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, ClearBridge Mid Cap Strategy highlighted stocks such as Performance Food Group Company (NYSE:PFGC). Performance Food Group Company (NYSE:PFGC) is a food and food-related products distributor that operates through Foodservice, Convenience, and Specialty segments. The one-month return of Performance Food Group Company (NYSE:PFGC) was -4.03%, and its shares gained 12.62% of their value over the last 52 weeks. On November 12, 2025, Performance Food Group Company (NYSE:PFGC) stock closed at $96.57 per share, with a market capitalization of $15.143 billion.

ClearBridge Mid Cap Strategy stated the following regarding Performance Food Group Company (NYSE:PFGC) in its third quarter 2025 investor letter:

"Consumer staples — the only negative sector of the Russell Midcap Index — proved a clear standout for the Strategy, led by Performance Food Group Company (NYSE:PFGC), a top U.S. foodservice distributor that supplies a broad range of fresh, frozen, dry and non-food products. The stock benefited from constructive activist engagement and news that the company entered an agreement with US Foods to explore the merits of a strategic combination. The company’s strong execution and steady earnings underscore its leadership in U.S. food distribution."

Performance Food Group Company (NYSE:PFGC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 47 hedge fund portfolios held Performance Food Group Company (NYSE:PFGC) at the end of the second quarter, up from 44 in the previous quarter. In the first quarter of fiscal 2026, Performance Food Group Company's (NYSE:PFGC) revenue increased 10.8% year-over-year. While we acknowledge the potential of Performance Food Group Company (NYSE:PFGC) 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.

In another article, we covered Performance Food Group Company (NYSE:PFGC) and shared the list of most profitable consumer defensive stocks to buy. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.