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Sysco (SYY) Outpaces Stock Market Gains: What You Should Know

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Sysco (SYY - Free Report) closed the most recent trading day at $85.76, moving +0.73% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.48%. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq added 0.43%.

Prior to today's trading, shares of the food distributor had gained 2.73% over the past month. This has outpaced the Consumer Staples sector's loss of 1.18% and the S&P 500's loss of 8.48% 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 May 10, 2022. The company is expected to report EPS of $0.54, up 145.45% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $16.06 billion, up 35.86% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.17 per share and revenue of $66.91 billion, which would represent changes of +120.14% and +30.44%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Sysco. These revisions help to show the ever-changing nature of near-term business trends. 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. Within the past 30 days, our consensus EPS projection has moved 4.41% higher. Sysco is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, Sysco is holding a Forward P/E ratio of 26.86. This represents a premium compared to its industry's average Forward P/E of 18.13.

Also, we should mention that SYY has a PEG ratio of 2.44. 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 2.44 at yesterday's closing price.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 217, putting it in the bottom 15% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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