This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Blue-Chip Stock Buys to Beat the S&P


Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

When you drive by a truck that says Sysco (SYY - Get Report) on the side, pay attention -- it may have your dinner in it. Sysco is the standard bearer in the food service distribution business, supplying everything from ingredients to par-cooked entrees to menu analysis services to 400,000 restaurants, hotels and institutional dining facilities.

Short sellers have lost their appetite for this stock, pushing its short interest ratio to 9.7, a level that indicates it would take two full weeks of buying at current volume levels for shorts to exit their positions.

Sysco is another example of the network effect in action. The firm's focus on cost across its supply chain means that it can move products to its customers far cheaper than peers can, an advantage that boosts profitability and gives Sysco more pricing power. It also means that there are some pretty huge advantages in shoving more stuff on those trucks. Because the routes already exist, cross-selling more products and services to SYY's existing customer Rolodex offers an easy way to earn growth.

To be sure, there are some risks in Sysco. The rising cost of soft commodities and trends toward locally sourced products at many restaurants are a couple of the headwinds that short sellers are latching onto. But Sysco's financial performance has been rising steadily over the past few years, and a dividend hike looks likely in the next quarter. Those factors increase the possibility of a short squeeze in the near-term.
3 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
SIAL $139.76 -0.04%
GPC $95.96 0.00%
LH $124.49 0.00%
SYY $48.87 0.00%
UAL $44.99 0.00%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs