Sysco Hauls In a Buffet of Growth and Profits

NEW YORK (TheStreet) -- When "it's too loved and well-respected" is the worst thing you can say when debating whether to buy a company's stock, I take this as a clear sign that you've found a winner. And it's not often that I will say this; but under this scenario -- I believe near-term valuation fears should be overlooked.

So, while Sysco Foods (SYY) might have left the bargain bin on Monday following its 10% gain, investors that are still waiting on the sideline are fooling themselves thinking that this stock will ever get cheap -- not at the rate at which management is literally gobbling up the competition.

With Sysco having now hauled in more than a dozen deals this year alone that will yield a combined $1 billion in annual revenue, Monday's $3.5 billion deal for U.S. Foods continues what has been a key component of Sysco's long-term growth strategy and management's aggressive expansion plans. But Sysco's value has transcended its checkbook -- albeit, that, too has been impressive.

Equally impressive has been not only management's attention to detail, but also various business improvement initiatives they've come up with, like the company's recent enterprise resource planning application that has been deployed throughout the entire company. Although you wouldn't often associate a food distributor with cutting-edge software applications, management has spared no cost when looking for ways to squeeze extra profits out of better efficiency methods.

[Read: The Deal: Clayton Dubilier, KKR Sell U.S. Foods for $8.2B]

With that in mind, as a value investor that appreciates efficiency details and its impact on cash flow, it's fairly easy to see why this stock seldom gets cheap, especially in an industry that is already known for its thin margins. To that end, with U.S. Foods now coming on board in a transaction that will be immediately accretive to earnings, Sysco remains an attractive stock, given the $600 million it expects to save annually on a long-term basis.

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