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

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 lower today making it today's featured Wholesale laggard. The industry as a whole closed the day up 1.9%. By the end of trading, Sysco Corporation fell $0.36 (-1.0%) to $34.66 on average volume. Throughout the day, 4,916,502 shares of Sysco Corporation exchanged hands as compared to its average daily volume of 3,790,900 shares. The stock ranged in price between $34.64-$35.20 after having opened the day at $34.85 as compared to the previous trading day's close of $35.02. Other companies within the Wholesale industry that declined today were: Hudson Technology ( HDSN), down 4.7%, InfoSonics Corporation ( IFON), down 1.9%, Bluelinx Holdings ( BXC), down 1.8% and China Auto Logistics ( CALI), down 1.7%.
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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 $20.3 billion and is part of the services sector. The company has a P/E ratio of 19.0, above the S&P 500 P/E ratio of 17.7. Shares are up 10.6% year to date as of the close of trading on Thursday. Currently there are no analysts that rate Sysco Corporation a buy, 2 analysts rate it a sell, and 7 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, solid stock price performance 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 positive front, Armco Metals Holdings ( CNAM), down 17.8%, Olympic Steel ( ZEUS), down 13.0%, Chefs Warehouse Holdings ( CHEF), down 11.0% and Lawson Products ( LAWS), down 10.2% , were all gainers within the wholesale industry with Rockwell Automation ( ROK) being today's featured wholesale industry leader.

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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