You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Sysco (SYY) Outpaces Stock Market Gains: What You Should Know
Sysco (SYY - Free Report) closed at $79.25 in the latest trading session, marking a +1.82% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.19%. At the same time, the Dow added 0.76%, and the tech-heavy Nasdaq gained 0.29%.
Heading into today, shares of the food distributor had lost 0.33% over the past month, outpacing the Consumer Staples sector's loss of 0.76% and lagging the S&P 500's gain of 4.06% in that time.
Sysco will be looking to display strength as it nears its next earnings release, which is expected to be January 31, 2023. In that report, analysts expect Sysco to post earnings of $0.83 per share. This would mark year-over-year growth of 45.61%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.73 billion, up 14.78% from the year-ago period.
SYY's full-year Zacks Consensus Estimates are calling for earnings of $4.14 per share and revenue of $76.5 billion. These results would represent year-over-year changes of +27.38% and +11.45%, respectively.
It is also important to note the 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. The Zacks Consensus EPS estimate has moved 0.18% lower within the past month. Sysco is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, Sysco is currently trading at a Forward P/E ratio of 18.78. Its industry sports an average Forward P/E of 18.51, so we one might conclude that Sysco is trading at a premium comparatively.
Investors should also note that SYY has a PEG ratio of 2.09 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 2.81 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 79, which puts it in the top 32% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.