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Barchart
Barchart
Kritika Sarmah

Sysco Stock: Is SYY Outperforming the Consumer Staples Sector?

Sysco Corporation (SYY), headquartered in Houston, Texas, is a prominent player in the global foodservice distribution industry. The company provides a wide range of food products, kitchen supplies, and cleaning solutions to restaurants, hospitals, schools, and other institutions involved in meal preparation. 

With a market capitalization of $39.19 billion, Sysco is considered a “large cap” stock. Through an extensive distribution network, Sysco ensures the timely and efficient delivery of goods to its diverse customer base. The company’s strong logistics capabilities and focus on customer service have helped it maintain a leading position in the market. 

 

As a consumer defensive giant, Sysco is not prone to significant swings in its stock price. It recently reached a 52-week high of $83.17 on Sept. 5, and is only down 3.6% from that high. Over the past three months, the stock has gained 6.2%, outperforming the Consumer Staples Select Sector SPDR Fund’s (XLP2.3% drop during the same time frame.

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Over the past 52 weeks, Sysco’s shares have gained 2.2%, and they are up by 4.9% year-to-date. In contrast, the XLP has dipped 4.4% over the past year and surged 1.7% in 2025.

Highlighting a sustained uptrend, Sysco’s stock has been trading above its 50-day and 200-day moving averages since June. 

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On July 29, Sysco reported solid fourth-quarter results for fiscal 2025 (the quarter that ended June 28). The company’s topline grew 2.8% year-over-year to $21.14 billion. This was higher than the $21 billion in sales that Wall Street analysts had expected. Its adjusted net earnings increased by 6.5% from the prior year’s period to $1.48 per share. This figure was higher than the $1.40 per share earnings that were expected. 

For fiscal 2026, Sysco expects approximately 3% to 5% sales growth, reaching a range of $84 billion to $85 billion. Its adjusted EPS growth is expected to be approximately 1% to 3%, reaching a range of $4.50 to $4.60. Shares initially fell 2.5% following the earnings release but rebounded 2.2% in the subsequent trading session.

While the stock is outperforming its sector ETF, there are stocks in the industry that are outperforming Sysco. We see that one of its top rivals, US Foods Holding Corp. (USFD), has gained 35.4% over the past 52 weeks and 15.4% YTD. 

Wall Street analysts are fairly bullish on Sysco’s stock. The stock has a consensus rating of “Moderate Buy” from the 17 analysts covering it. The mean price target of $85.78 shows a 7% upside compared to current levels. Moreover, the Street-high price target of $93 indicates a 16% upside. 

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