Yahoo Finance Sysco (SYY) Outpaces Stock Market Gains: What You Should Know
Sysco (SYY) closed at $75.20 in the latest trading session, marking a +1.5% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.3%. Meanwhile, the Dow gained 0.98%, and the Nasdaq, a tech-heavy index, added 7.48%.
Prior to today's trading, shares of the food distributor had lost 5.87% over the past month. This has lagged the Consumer Staples sector's loss of 1.2% and the S&P 500's loss of 2.95% in that time.
Wall Street will be looking for positivity from Sysco as it approaches its next earnings report date. In that report, analysts expect Sysco to post earnings of $0.93 per share. This would mark year-over-year growth of 30.99%. Our most recent consensus estimate is calling for quarterly revenue of $18.58 billion, up 9.94% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.04 per share and revenue of $76.4 billion. These totals would mark changes of +24.31% and +11.31%, respectively, from last 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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. Within the past 30 days, our consensus EPS projection has moved 0.26% lower. Sysco is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, Sysco is holding a Forward P/E ratio of 18.36. This represents a premium compared to its industry's average Forward P/E of 18.06.
It is also worth noting that SYY currently has a PEG ratio of 1.44. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Food - Miscellaneous was holding an average PEG ratio of 2.63 at yesterday's closing price.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 146, which puts it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Sysco Corporation (SYY) : Free Stock Analysis Report
