Stock of the Day

November 25, 2019

Sysco (SYY)

$73.22
+$2.00 (+2.8%)
Market Cap: $34.84B

About Sysco

Sysco Corporation, through its subsidiaries, engages in the marketing and distribution of various food and related products to the foodservice or food-away-from-home industry in the United States, Canada, the United Kingdom, France, and internationally. It operates through U.S. Foodservice Operations, International Foodservice Operations, SYGMA, and Other segments. The company distributes frozen food, such as meat, seafood, fully prepared entrées, fruits, vegetables, and desserts; canned and dry food products; fresh meat and seafood products; dairy products; beverages; imported specialties; and fresh produce products. It also supplies various non-food items, including paper products comprising disposable napkins, plates, and cups; tableware consisting of glassware and silverware; cookware, such as pots, pans, and utensils; restaurant and kitchen equipment and supplies; and cleaning supplies. The company serves restaurants, hospitals and nursing facilities, schools and colleges, hotels and motels, industrial caterers, and other foodservice venues. Sysco Corporation was incorporated in 1969 and is headquartered in Houston, Texas.

Sysco Bull Case

Here are some ways that investors could benefit from investing in Sysco Co.:

  • Sysco Co. recently reported earnings per share (EPS) of $0.93, meeting the consensus estimate, which indicates strong financial performance and stability.
  • The company has a high return on equity of 106.30%, suggesting effective management and profitability relative to shareholder equity.
  • Sysco Co. has received multiple upgrades from analysts, with a consensus rating of "Moderate Buy" and a price target of $84.38, indicating positive market sentiment.
  • As of the latest trading session, Sysco Co. shares are priced at $70.68, which may present a buying opportunity for investors looking for value.
  • Insider ownership is relatively low at 0.54%, which can indicate that the stock is not overly influenced by insider trading, potentially providing a more stable investment environment.

Sysco Bear Case

Investors should be bearish about investing in Sysco Co. for these reasons:

  • Insiders have sold a significant number of shares recently, totaling 76,370 shares worth approximately $5.97 million, which may signal a lack of confidence in the stock's future performance.
  • The stock has a high debt-to-equity ratio of 5.66, indicating that the company is heavily financed by debt, which can pose risks during economic downturns.
  • Sysco Co. has experienced a decrease in stock price targets from various analysts, with some lowering their expectations, which could reflect concerns about future growth.
  • The company has a relatively low net margin of 2.40%, suggesting that it retains a small portion of revenue as profit, which may limit its ability to reinvest in growth opportunities.
  • Recent trading volumes have been higher than average, which could indicate increased volatility and uncertainty in the stock's performance.

Recent News