Important note
This AI stock analysis for Sysco is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!
Sysco - AI Stock Analysis
Analysis generated October 7, 2024
Sysco Corporation is a leading global distributor of food and related products, serving a wide range of customers including restaurants, healthcare facilities, educational institutions, and more. With a robust supply chain and comprehensive product offerings, Sysco has established itself as a crucial player in the foodservice distribution industry.
Fundamental Analysis
Sysco's revenue for the last quarter was $20.6 billion, which represents a 6.07% increase compared to the previous quarter. This quarter-over-quarter growth is a positive sign of the company’s ability to increase sales. Additionally, the revenue is up 4.20% over the same quarter last year, indicating sustained year-over-year growth.
However, while net income for the last quarter was $612 million, representing a significant increase of 44.03% compared to the quarter before, it’s down 16.64% from the same quarter last year. This discrepancy can be a cause for concern as it reflects potential challenges in managing costs or changes in market conditions.
Further, the EBITDA for the last quarter was $1.31 billion, a rise of 28.24% quarter-over-quarter, which is constructive. Yet, it showed a slight decrease of 1.08% compared to the same quarter last year. Despite the small decline, the growth in EBITDA from the previous quarter suggests that the company is improving its operational efficiency.
Sysco’s current Price-to-Earnings (P/E) ratio stands at 19.39. This is a moderate value, placing Sysco within a normal range and neither significantly undervalued nor overvalued by market standards. This suggests that the market perceives Sysco as a stable investment with a reasonable expectation of future earnings.
Technical Analysis
Sysco's stock is currently priced at $75.41, indicating a 3.38% decrease from a month ago, which may signal some short-term bearish momentum. However, the stock has increased by 23.10% from a year ago, showing an overall positive long-term trend.
The stock's short-term trend appears bearish, with the current 10-day Simple Moving Average (SMA10) at 76.32, which is lower than the previous SMA10 of 76.49. This suggests a potential downward momentum in the near term. Additionally, the Relative Strength Index (RSI) is at 70.4, indicating that the stock is potentially overbought. The high RSI is typically a bearish signal and can suggest the stock may face some downward pressure.
Alternative Data Analysis
Sysco has 680 open positions according to popular job boards, a significant 61% decrease over the last couple of months. This could indicate cost-cutting measures, which may not be favorable for a company striving for growth.
The company's website has attracted an estimated 1.7 million visitors recently, but this figure is down 13% over the past few months. This decline in web traffic may signal a reduction in customer acquisition, a troubling sign for future revenue growth.
On social media, Sysco maintains a stable presence with 68,000 followers on Instagram and 16,000 followers on Twitter, with no significant changes in these numbers recently. This stability in social engagement suggests a steady, though not expanding, customer relationship.
Lastly, the AltIndex AI score for Sysco is 44, which translates to a hold signal. This AI-driven score takes into account various fundamental, technical, and alternative data factors to predict the stock's performance.
Conclusion and Recommendation
Sysco Corporation shows a mixed bag of signals when analyzing its stock. On the fundamental front, it demonstrates solid quarter-over-quarter growth in revenue and profitability, though year-over-year net income and EBITDA present some concerns. The current P/E ratio suggests the stock is fairly valued.
Technically, the stock is experiencing short-term bearish signals despite a positive long-term trend. The high RSI indicates potential overbought conditions, suggesting caution in the near term.
From an alternative data perspective, the decrease in job openings and website traffic could signal internal and external challenges, despite stable social media engagement.
Considering all available data, the recommendation for Sysco's stock is a “hold.” While the company shows positive signs of quarter-over-quarter growth and a modest P/E ratio, there are enough red flags in terms of declining net income year-over-year, potential downward price movement, and concerning alternative data trends to warrant caution.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
