With a market cap of $37.9 billion, Sysco Corporation (SYY) is a global leader in selling, marketing, and distributing food and related products to businesses that prepare meals away from home, including restaurants, healthcare and educational institutions, and hospitality establishments. With 333 distribution centers across 10 countries and a workforce of 75,000 colleagues, Sysco serves approximately 670,000 customer locations and generated over $84 billion in sales in fiscal year 2026.
Shares of the Houston, Texas-based company have underperformed the broader market over the past 52 weeks. SYY stock has risen 1.1% over this time frame, while the broader S&P 500 Index ($SPX) has gained 10.8%. Moreover, shares of the company are up 3.5% on a YTD basis, compared to SPX’s 10.9% rise.
More Top Stocks Daily: Go behind Wall Street’s hottest headlines with Barchart’s Active Investor newsletter.
Shares of the food distributor have lagged behind the State Street Consumer Staples Select Sector SPDR ETF’s (XLP) 17.8% return over the past 52 weeks.
www.barchart.com Sysco shares fell 9.3% on Nov. 3 after the company reported weaker-than-expected fiscal Q1 2027 net sales of $21.74 billion. Restaurant traffic and order volumes softened in August, as an approximately six-week cyclosporiasis outbreak further weakened already sluggish restaurant demand. The company had halted sales and distribution of Taylor Farms iceberg lettuce from Mexico in July following the U.S. outbreak.
Investor concerns were compounded by rising fuel costs, elevated freight expenses and higher food input costs, prompting Sysco to lower its annual sales growth outlook to the bottom end of its previous 6% - 7% range, although adjusted EPS of $1.19 were in line with estimates.
For the fiscal year ending in June 2027, analysts expect Sysco’s adjusted EPS to grow 9.8% year-over-year to $5.06. The company’s earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing on another occasion.
Among the 15 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings, seven “Holds,” and one “Strong Sell.”
www.barchart.com This configuration has remained unchanged over the past three months.
On Nov. 4, Bank of America Securities analyst Sara Senatore maintained a “Buy” rating on Sysco and maintained a price target of $102.
The mean price target of $91.17 represents a 19.6% premium to SYY’s current price levels. The Street-high price target of $102 suggests a 33.8% potential upside.
On the date of publication, Sohini Mondal did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
Dear Costco Stock Fans, Mark Your Calendars for December 4 NVDA Stock Alert: Why Baird Just Slashed Its Nvidia Price Target from $500 to $200 As Data Center Concerns Hit CRWV Stock After the Midterms, CoreWeave Is Going Straight to Texas’s Governor-Elect Despite Valuation Concerns, This Lesser-Known Stock Is Hot at 10-Year Highs