Why Sysco (SYY) Stock Is Gaining Today

NEW YORK (TheStreet) -- Sysco (SYY) shares are up 3.4% to $37.50 on Monday after the company reported a 6.4% rise in fourth quarter earnings to 50 cents per diluted share, in line with analysts expectations.

Revenue for the quarter also rose, up 5.9% to $12.29 billion, ahead of analysts $12.14 billion estimates.

The food distributor reported that earnings for the quarter were hurt by meat, dairy and seafood inflation costs, while its acquisitions during the quarter helped improve sales by 0.6%.

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TheStreet Ratings team rates SYSCO CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate SYSCO CORP (SYY) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

SYY Chart SYY data by YCharts

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