Sysco (SYY) Gains But Lags Market: What You Should Know
In the latest trading session, Sysco (SYY) closed at $82.52, marking a +1.24% move from the previous day. This move lagged the S&P 500's daily gain of 1.63%. Elsewhere, the Dow gained 1.07%, while the tech-heavy Nasdaq added 0.3%.
Prior to today's trading, shares of the food distributor had gained 10.72% over the past month. This has outpaced the Consumer Staples sector's loss of 0.29% and the S&P 500's gain of 2.94% in that time.
Wall Street will be looking for positivity from Sysco as it approaches its next earnings report date. This is expected to be November 1, 2022. On that day, Sysco is projected to report earnings of $0.99 per share, which would represent year-over-year growth of 19.28%. Meanwhile, our latest consensus estimate is calling for revenue of $18.63 billion, up 13.23% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.20 per share and revenue of $75.53 billion, which would represent changes of +29.23% and +10.05%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Sysco. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.14% lower within the past month. Sysco is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Sysco has a Forward P/E ratio of 19.42 right now. Its industry sports an average Forward P/E of 18.13, so we one might conclude that Sysco is trading at a premium comparatively.
Meanwhile, SYY's PEG ratio is currently 1.77. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Food - Miscellaneous was holding an average PEG ratio of 2.49 at yesterday's closing price.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 139, putting it in the bottom 45% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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