Does Sysco Corporation (SYY) Have an Attractive Valuation?
Aristotle Capital Management, LLC, an investment management company, released its “Value Equity Strategy” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund returned 10.57% gross of fees, underperforming the Russell 1000 Value Index, which returned 12.42%. The underperformance of the fund relative to the benchmark in the quarter was attributed to the stock selection while the sector allocation had a positive impact. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Aristotle Value Equity Strategy highlighted stocks like Sysco Corporation (NYSE:SYY) in its Q4 2022 investor letter. Headquartered in Houston, Texas, Sysco Corporation (NYSE:SYY) markets and distributes various food and related products to restaurants, healthcare and educational facilities, and lodging establishments. On March 24, 2023, Sysco Corporation (NYSE:SYY) stock closed at $74.64 per share. One-month return of Sysco Corporation (NYSE:SYY) was -1.40%, and its shares lost 7.78% of their value over the last 52 weeks. Sysco Corporation (NYSE:SYY) has a market capitalization of $37.888 billion.
Aristotle Value Equity Strategy made the following comment about Sysco Corporation (NYSE:SYY) in its Q4 2022 investor letter:
"Founded in 1969 and headquartered in Texas, Sysco Corporation (NYSE:SYY) is one of the largest food distribution companies in the world. The company generates more than $68 billion in annual sales and serves approximately 700,000 customers around the world (~90% of sales are generated in North America).
Sysco provides its customers a single partner from which to conveniently source all the ingredients kitchens need to build complete menus. This includes fresh and frozen meats, seafoods, fruits, vegetables, dairy, bakery items and even disposable dishware products. In addition, the company’s more than 6,000 sales consultants work closely with individual chefs, providing product advice and helping construct menus. Sysco’s clients are predominately restaurants (63% of revenue), but also include health care facilities (8%), education and government entities (8%), and travel and leisure establishments (7%), as well as other locations (14%) ..." (Click here to view the full text)
Sysco Corporation (NYSE:SYY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held Sysco Corporation (NYSE:SYY) at the end of the fourth quarter which was 40 in the previous quarter.
We discussed Sysco Corporation (NYSE:SYY) in another article and shared the list of most valuable food companies in the world. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.
Disclosure: None. This article is originally published at Insider Monkey.