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Sysco (SYY) Gains As Market Dips: What You Should Know
Sysco (SYY - Free Report) closed the most recent trading day at $79.66, moving +0.31% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.13%. At the same time, the Dow lost 0.56%, and the tech-heavy Nasdaq gained 0.16%.
Coming into today, shares of the food distributor had lost 7.2% in the past month. In that same time, the Consumer Staples sector lost 5.19%, while the S&P 500 lost 7.59%.
Sysco will be looking to display strength as it nears its next earnings release. In that report, analysts expect Sysco to post earnings of $0.99 per share. This would mark year-over-year growth of 19.28%. Our most recent consensus estimate is calling for quarterly revenue of $18.61 billion, up 13.06% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.20 per share and revenue of $75.6 billion, which would represent changes of +29.23% and +10.15%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Sysco. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.08% lower. Sysco is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Sysco currently has a Forward P/E ratio of 18.89. Its industry sports an average Forward P/E of 18.63, so we one might conclude that Sysco is trading at a premium comparatively.
Meanwhile, SYY's PEG ratio is currently 2.1. 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 industry currently had an average PEG ratio of 2.63 as of yesterday's close.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 149, which puts it in the bottom 41% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.