Sysco Corporation (SYY): Today's Featured Wholesale Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Sysco Corporation ( SYY) pushed the Wholesale industry higher today making it today's featured wholesale winner. The industry as a whole closed the day down 0.3%. By the end of trading, Sysco Corporation rose 64 cents (1.9%) to $34.42 on heavy volume. Throughout the day, 6.7 million shares of Sysco Corporation exchanged hands as compared to its average daily volume of 3.5 million shares. The stock ranged in a price between $33.82-$34.52 after having opened the day at $33.82 as compared to the previous trading day's close of $33.78. Other companies within the Wholesale industry that increased today were: Hudson Technology ( HDSN), up 7%, AmerisourceBergen ( ABC), up 3.6%, Chindex International ( CHDX), up 2.7%, and Shengkai Innovations ( VALV), up 2.3%.
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Sysco Corporation, through its subsidiaries, engages in the marketing and distribution of a range of food and related products primarily to the foodservice or food-away-from-home industry. Sysco Corporation has a market cap of $19.84 billion and is part of the services sector. The company has a P/E ratio of 18.6, above the S&P 500 P/E ratio of 17.7. Shares are up 6.7% year to date as of the close of trading on Monday. Currently there is one analyst that rates Sysco Corporation a buy, two analysts rate it a sell, and seven rate it a hold.

TheStreet Ratings rates Sysco Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

On the negative front, Cardinal Health ( CAH), down 8.2%, Rada Electronics Industries ( RADA), down 7.3%, China Auto Logistics ( CALI), down 5.1%, and China Metro-Rural Holdings ( CNR), down 4.8%, were all laggards within the wholesale industry with McKesson ( MCK) being today's wholesale industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the wholesale industry could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the wholesale industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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