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Sysco (SYY) Gains But Lags Market: What You Should Know

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Sysco (SYY - Free Report) closed the most recent trading day at $77.23, moving +0.38% from the previous trading session. This move lagged the S&P 500's daily gain of 1.44%. Elsewhere, the Dow gained 1.26%, while the tech-heavy Nasdaq added 5.21%.

Prior to today's trading, shares of the food distributor had gained 1.84% over the past month. This has lagged the Consumer Staples sector's gain of 2.41% and the S&P 500's gain of 2.28% in that time.

Wall Street will be looking for positivity from Sysco as it approaches its next earnings report date. On that day, Sysco is projected to report earnings of $0.92 per share, which would represent year-over-year growth of 29.58%. Meanwhile, our latest consensus estimate is calling for revenue of $18.7 billion, up 10.63% from the prior-year quarter.

SYY's full-year Zacks Consensus Estimates are calling for earnings of $4.04 per share and revenue of $76.52 billion. These results would represent year-over-year changes of +24.31% and +11.48%, respectively.

Investors might also notice recent changes to analyst estimates for Sysco. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

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 0.06% lower within the past month. Sysco is currently sporting a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Sysco has a Forward P/E ratio of 19.03 right now. This represents a premium compared to its industry's average Forward P/E of 18.29.

Investors should also note that SYY has a PEG ratio of 1.49 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. SYY's industry had an average PEG ratio of 2.72 as of yesterday's close.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 148, putting it in the bottom 42% 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.

To follow SYY in the coming trading sessions, be sure to utilize Zacks.com.


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