Sysco (SYY) Gains As Market Dips: What You Should Know
Sysco (SYY) closed at $74.98 in the latest trading session, marking a +0.43% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.7%. Elsewhere, the Dow lost 0.87%, while the tech-heavy Nasdaq added 2.77%.
Prior to today's trading, shares of the food distributor had lost 4.01% over the past month. This has lagged the Consumer Staples sector's loss of 1.52% and was narrower than the S&P 500's loss of 5.06% in that time.
Sysco will be looking to display strength as it nears its next earnings release. In that report, analysts expect Sysco to post earnings of $0.93 per share. This would mark year-over-year growth of 30.99%. Meanwhile, our latest consensus estimate is calling for revenue of $18.58 billion, up 9.94% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.04 per share and revenue of $76.4 billion, which would represent changes of +24.31% and +11.31%, respectively, from the prior year.
Any recent changes to analyst estimates for Sysco should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.26% lower. Sysco is currently sporting a Zacks Rank of #4 (Sell).
Digging into valuation, Sysco currently has a Forward P/E ratio of 18.5. This represents a premium compared to its industry's average Forward P/E of 18.09.
It is also worth noting that SYY currently has a PEG ratio of 1.45. 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. Food - Miscellaneous stocks are, on average, holding a PEG ratio of 2.62 based on yesterday's closing prices.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Sysco Corporation (SYY) : Free Stock Analysis Report
