After opening Thursday at around $66.63, Sysco Corporation (NYSE:SYY) stock surged to as high as $66.64. It then made a downturn, dipping as low as $66.035. Although the stock bounced a bit into the close, it finished the day at $66.12, down -0.33 points or -0.5 percent on the day. The final volume for the day was 2.242 million, which was less than its average volume. The firm is left with a market cap of $34 billion and now has 514.17 million shares outstanding. Sysco Corporation (SYY) stock has lost -1.22 percent of market value in 21 trading days.
SYY stock has a trailing 3-year beta of 0.55, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $2.83 a share in the trailing twelve months. The stock’s value has surged 5.52 percent year to date (YTD) against a rise of 8.93 percent in 12 month’s time. The company’s shares still trade -12.98 percent away from its 1-year high of $75.98 and 13.76 percent up from 52-week low of $58.12. The average consensus rating on the company is 2.5, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.
Sysco Corporation (SYY) will probably climb 6.88 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $82-month high price target. This represents a whopping 24.02 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $72, which represents a return potential of 8.89 percent when compared to the closing price of the stock of $66.12 on Thursday, March 14. The lowest price target for the stock is $54 — slightly more than -18.33 percent from SYY’s current share price.
History has shown that shares in Sysco Corporation have gone down on 22 different earnings reaction days and are predicted to add 0.03 percent when the company reports upcoming earnings. Investors will get their next glimpse of SYY’s Q3 earnings on May 13. Analysts are forecasting revenue to climb 2.9 percent to $14.8B in the fiscal third quarter, while earnings are seen soaring by nearly 4.48 percent to $0.7 per share. It earned $0.75 per share, better than the $0.73, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $14.8B, in line with the $14.8B analysts expected. Earnings are estimated to increase by 23.7 percent this year, 10.55 percent next year and continue to increase by 9.79 percent annually for the next 5 years.
The stock is currently hovering around the first support level of $65.89. Below this, the next support is placed in the zone of $65.66. Till the time, the SYY stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 49.8 on daily chart, which may remain a cause for concern. If the price breaks below $65.66 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $66.5 mark may result into a pull-back move towards $66.87 level.
Shares of Sysco Corporation (SYY) are trading at a P/E ratio of 26.05 times earnings reported for the past 12 months. The industry SYY operates in has an average P/E of 37.02. Its P/E ratio went as low as 20.4X and as high as 33.35 over the 5-year span.Further, it is sporting a 0.57 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.01. 18.9 percent is the gross profit margin for Sysco Corporation and operating margin sits at 3.8 percent. Along with this, the net profit margin is 2.5 percent.