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Sysco's Industry Leading Scale Drives Continued Profit Growth

Dec. 02, 2021 1:08 PM ETSysco Corporation (SYY)6 Comments
David Trainer profile picture
David Trainer


  • Sysco’s 3Q21 earnings reveal the firm’s “moat” is getting larger and could lead to years of profit growth.
  • Sysco’s scale allows it to mitigate supply chain disruptions in serving its customers. Management notes it is able “to deliver higher fill rates for customers than the industry average."
  • Assuming a return to pre-COVID margins and meeting consensus revenue estimates, the stock is worth $103/share today – 36% above the current price.
  • Looking for more investing ideas like this one? Get them exclusively at Value Investing 2.0 . Learn More »

Sysco delivery semi truck is delivering products to customers

Michael Vi/iStock Editorial via Getty Images

Sysco Corp. (NYSE:SYY) joined our list of Long Ideas in December 2017, and we included it in our "See Through the Dip" thesis in April 2020. The stock outperformed the market

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This article was written by

David Trainer profile picture
We aim to help investor make more intelligent capital allocation decisions. Our research is driven by proven-superior fundamental data, models and equity/credit ratings.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of SYY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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Comments (6)

$Magnet profile picture
Fortunate to have owned SYY for many years ; people have to eat and they want to eat out.
Not to mention SYY is a Dividend Aristocrat.

Retired dividend-growth investor (long SYY)
siestadreamer profile picture
Thanks for your article, @David Trainer. I bought SYY as a covid recovery play, so my palms sweat every time a new variant hits the news.
One of the best companies out there! One of my best investments I made and only wish I had more cash to invest when I purchased it originally. If you can buy this company on big corrections, do so.
A very good company, which I've held for decades,-- safe and solid but not spectacular. It can have a place in a diversified portfolio. In the 1990s I was teased for holding Sysco instead of Cisco as that name rose spectacularly,-- until CSCO collapsed when the dot-com bubble burst.
cachinga profile picture
Eating, not going out of style.
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