Monthly Stock Report: Sysco Corporation (SYY)

Publication Date: September 22, 2024

Company Overview

Sysco Corporation (SYY), based in Houston, Texas, is a leading entity in the food distribution industry, focusing on the marketing and distribution of a diverse array of food products and related services to the foodservice sector. Founded in 1969, Sysco has established a wide-reaching presence across the United States, Canada, the United Kingdom, and France. The company caters to a varied clientele, which includes restaurants, hospitals, schools, and hotels, providing essential goods such as frozen foods, canned goods, fresh produce, dairy products, and kitchen supplies. Operating within the Consumer Defensive sector, specifically in Food Distribution, Sysco plays a vital role in supplying the necessary goods to numerous food venues, making it a staple in the industry.

Investment Potential and Market Performance

The food distribution sector, recognized for its resilient demand, poses a lucrative investment opportunity, thereby earning a “buy” recommendation for Sysco stock. This sector is typically less affected by economic downturns, providing stability during market fluctuations. Currently, Sysco is generating impressive revenue of $78.84 billion, indicative of its robust market presence and growth potential. With the stock priced at $75.19 and a target high price of $91.00, investors are presented with a possibility for significant capital appreciation. The current pricing relative to a target mean of $84.86 and a median target of $86.00 suggests a positive outlook from analysts, reinforcing the notion of portfolio enhancement through investment in Sysco.

Stock Analysis and Share Performance

Sysco’s stock has displayed notable fluctuations over the past year, reaching a high of $82.89 and dipping to a low of $62.24. Currently priced at $75.19, the stock is marginally below its fifty-day moving average of $75.75, suggesting steady performance amid a volatile market environment. The company’s total shares outstanding are 491,520,992, with approximately 2.51% of the float shares shorted, hinting at cautious optimism among investors. Additionally, while the absence of the EBITDA figure poses a slight data gap for complete profitability analysis, the recommendation score of 2.3 from 13 analysts indicates solid support for buying the stock. Sysco’s combination of a reliable revenue stream and stable pricing makes it an attractive option for investors looking to diversify within the consumer defensive sector.

Metric	Value
Market Cap	$37.0b
Total Debt	$12.9b
Total Cash	$696.0m
Shares Outstanding	491.5m
Float Shares	490.0m