Sysco Corporation (SYY), headquartered in Houston, Texas, markets and distributes various food and related products to the food service or food-away-from-home industry. Valued at $38.1 billion by market cap, the company also distributes personal care guest amenities, housekeeping supplies, room accessories, and textiles to the lodging industry.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and Sysco fits well into that category, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the food distribution industry.
With an expansive network spanning 340 distribution facilities, it ensures efficient and reliable service to a wide range of customers. The company's emphasis on private brand development, overseen by a skilled quality assurance team, differentiates Sysco by delivering exceptional products that meet rigorous quality criteria.
Despite its notable strength, SYY slipped 7.7% from its 52-week high of $82.89, achieved on Feb. 2. Over the past three months, SYY stock has gained 7.7%, outperforming the Invesco Food & Beverage ETF’s (PBJ) 5.2% gains during the same time frame.
In the longer term, shares of SYY rose 4.6% on a YTD basis and climbed 9.5% over the past 52 weeks, outperforming PBJ’s YTD gains of 3.9% and solid 9% returns over the last year.
To confirm the bullish trend, SYY has been trading above its 50-day and 200-day moving averages since the end of July, with slight fluctuations recently.
Sysco’s success can be credited to its comprehensive range of offerings, including a wide variety of products, innovative technology solutions, and tailored business services for customers. Additionally, its focus on specialty and trending food products catering to the needs of food enthusiasts keeps the company competitive in the market.
On Jul. 30, SYY shares closed up more than 4% after reporting its Q4 earnings results. Its adjusted EPS of $1.39 beat Wall Street expectations of $1.38. The company’s revenue was $20.6 billion, beating Wall Street forecasts of $20.5 billion.
Sysco’s top rival, The Andersons, Inc. (ANDE), has had a rough ride. ANDE's shares plummeted 16.8% in 2024 alone and 2.3% over the past 52 weeks.
Wall Street analysts are highly bullish on SYY’s prospects. The stock has a consensus “Strong Buy” rating from the 15 analysts covering it, and the mean price target of $85.25 suggests a potential upside of 11.4% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
