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Barchart
Barchart
Aditya Sarawgi

Is Sysco Stock Underperforming the Dow?

Houston, Texas-based Sysco Corporation (SYY) engages in the marketing and distribution of various food and related products to the foodservice or food-away-from-home industry in the United States and internationally. With a market cap of $36.6 billion, the company operates through U.S. Foodservice Operations, International Foodservice Operations, SYGMA, and Other segments.

Companies worth $10 billion or more are typically referred to as "large-cap stocks." SYY fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the food distribution industry. The company benefits from having a widespread network of distribution facilities that offer canned, dry foods, beverage products, fresh meat, and seafood to restaurants, hospitals and nursing homes, hotels and more.

 

The company touched its 52-week high of $82.23 on Dec. 6 last year and has fallen 9.1% from that peak. In the past three months, SYY stock has grown marginally, underperforming the Dow Jones Industrial Average’s ($DOWI3.5% uptick during the same time frame.

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SYY stock has grown 4.2% over the past 52 weeks but has declined 2.3% on a YTD basis, underperforming Dow’s 10.6% gains over the past year and a marginal rise in 2025.

However, SYY stock has been trading above its 200-day moving average since early June and above its 50-day moving average since late May.

www.barchart.com

SYY stock declined marginally following the release of its disappointing Q3 earnings on Apr. 29. The company reported a modest 1.1% year-over-year increase in its sales to $19.6 billion, negatively impacted by California wildfires, adverse weather, and weakening consumer confidence. Moreover, the company’s adjusted EBITDA decreased marginally from its year-ago value to $960 million. And its adjusted operating income decreased 3.3% from the prior year’s quarter to $773 million. SYY’s adjusted EPS came in at $0.96 and failed to meet the consensus estimates by 6.8%.

In the food distribution arena, rival US Foods Holding Corp. (USFD) has surged 43.2% over the past year and 12.6% in 2025, significantly outperforming the SYY stock.

Among the 16 analysts covering the SYY stock, the consensus rating is a “Moderate Buy.” Its mean price target of $79.86 suggests a modest 6.9% upside potential from current price levels.

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