2024-03-14 11:53:52 ET
Summary
- Sysco Corporation has lagged behind the overall market but is expected to see upside with improving volume trends and recovered margins since COVID-19.
- The company offers a reliable dividend with a yield of 2.6% and a payout ratio of 47%.
- Sysco's recent financial results led to a 7.5% jump in stock price, and the author's valuation suggests a potential 25% increase from the current price.
Investment Thesis
Sysco Corporation ( SYY ) is a Food Service business that has lagged the overall market over the past year. But I believe most of the upside is in front of the company with improving volume trends and margins that have recovered since COVID-19. The company also sports a reliable dividend yield of 2.6% with a payout ratio of 47%. SYY posted results on the 30th January and the price jumped 7.5%, where it has stayed trading at around $80. My valuation has SYY up 19% from today's price....
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For further details see:
Sysco Corporation: Robust Volume Growth