New Lifetime High Reached: Sysco (SYY)

Trade-Ideas LLC identified Sysco (SYY) as a new lifetime high candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Sysco

(

SYY

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Sysco as such a stock due to the following factors:

  • SYY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $250.8 million.
  • SYY has traded 43,451 shares today.
  • SYY is trading at a new lifetime high.

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More details on SYY:

Sysco Corporation, through its subsidiaries, markets and distributes a range of food and related products primarily to the foodservice or food-away-from-home industry. The stock currently has a dividend yield of 2.5%. SYY has a PE ratio of 36. Currently there are 3 analysts that rate Sysco a buy, 1 analyst rates it a sell, and 6 rate it a hold.

The average volume for Sysco has been 3.7 million shares per day over the past 30 days. Sysco has a market cap of $28.3 billion and is part of the services sector and wholesale industry. The stock has a beta of 0.44 and a short float of 2.8% with 3.10 days to cover. Shares are up 23.8% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Sysco as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, increase in net income, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • SYY's revenue growth has slightly outpaced the industry average of 0.9%. Since the same quarter one year prior, revenues slightly increased by 2.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Food & Staples Retailing industry and the overall market, SYSCO CORP's return on equity exceeds that of both the industry average and the S&P 500.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food & Staples Retailing industry. The net income increased by 22.7% when compared to the same quarter one year prior, going from $176.96 million to $217.14 million.
  • Net operating cash flow has increased to $520.10 million or 27.45% when compared to the same quarter last year. Despite an increase in cash flow, SYSCO CORP's average is still marginally south of the industry average growth rate of 33.77%.
  • Powered by its strong earnings growth of 26.66% and other important driving factors, this stock has surged by 40.55% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.

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