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Our Buy List is very nearly done with this earnings season. Today, Sysco (NYSE:SYY) reported earnings for its fiscal third quarter of 42 cents a share. This was two cents better than Wall Street’s estimates. This was the fourth straight quarter that Sysco has topped expectations. The stock opened higher but has since pulled back and is now down slightly.

Bill DeLaney, Sysco’s CEO said: “The underlying business environment appears to be improving, as evidenced by both the case volume growth and easing of deflation that we realized as the quarter progressed.”

This is a key point. Sysco has been sharply impacted by lower prices. They’ve responded by cutting overheard (meaning jobs and pay), but this past quarter is the first one since September 2008 that showed growing year-over-year sales. This is how good companies manage their way through recessions. Sysco is a good example of a company that has met its challenges but it hasn’t yet been rewarded by investors.

For this fiscal year (ending in June), Sysco should make about $1.95 per share, and probably about $2.10 per share next year. Sysco currently pays a nice dividend which yields 3.2%. Given Sysco’s current price, the stock is a decent buy.

Source: Sysco Turns the Corner