SYY Stock Analysis — Sysco Corporation
Sector: Consumer Staples
AI Verdict
Sysco trades at 15.1x next year's earnings with 33.2% EPS growth expected—cheap for the growth you're getting, and the scale-driven moat makes those expectations more credible than most in consumer staples.
Competitive Moat
Sysco dominates U.S. foodservice distribution with unmatched scale, logistics infrastructure, and long-term contracts with restaurants and institutions, creating high switching costs for customers. Its national reach and distribution network make it hard for smaller competitors to match its pricing or reliability.
Summary
Sysco's 15.1x forward P/E and 33.2% expected EPS growth put it in rare territory for a food distributor.
Where It Stands
Sysco has returned just 2.39% over the past year with an RSI of 38.5 (cooling), while its 20.1x trailing P/E sits right at the consumer staples sector median of 20x.
Key Metrics
- RSI: 38.5 — Near Oversold
- Trailing P/E: 20.1x
- Forward P/E: 15.1x
- PEG Ratio: 0.60
- Earnings Growth: +0.3%
- Revenue Growth: +0.0%
- Market Cap: $34.6B
- Dividend Yield: 0.03%
- 1-Year Return: 2.39%
- 52-Week High: $91.84
- 52-Week Low: $68.19
Analyst Consensus
13 Buy · 10 Hold · 0 Sell (23 analysts)
Bull Case
With forward EPS growth forecast at 33.2% and a forward P/E of 15.1x, you're getting high expected earnings growth for a below-average price in this sector.
Bear Case
If Sysco's P/E reverts from 20.1x to the sector median or below due to execution risk, shares could see further downside, especially with RSI still above oversold at 38.5.
Catalyst to Watch
Watch for quarterly earnings beats or misses, as any deviation from the 33.2% EPS growth expectation will likely reset valuation quickly.