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Is Sysco (SYY) Stock Undervalued Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Sysco (SYY - Free Report) . SYY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Investors will also notice that SYY has a PEG ratio of 1.76. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SYY's PEG compares to its industry's average PEG of 2.12. Over the past 52 weeks, SYY's PEG has been as high as 2.22 and as low as 1.62, with a median of 1.81.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SYY has a P/S ratio of 0.57. This compares to its industry's average P/S of 1.07.

These are just a handful of the figures considered in Sysco's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SYY is an impressive value stock right now.


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