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Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)50% (Hyper Growth)
EST. PRICE IN 2031
$105.29
Based on 5.9% avg growth
INTRINSIC VALUE TODAY
$65.38
Trading above historical range
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 16.0x Exit PE.
Valuation Analysis: SYY is currently trading at $77.49, which is considered oversold relative to its 30-day fair value range of $78.23 to $82.40. The stock's valuation (Forward PE: 15.7) is in line with its historical norms (16.0). Remarkably, the market is currently pricing in an annual earnings decline of 0.7% over the next few years. This pessimistic expectation contrasts with the company's recent 5.3% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, SYY is in a strong uptrend. The price is currently testing key support at $77.00. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: SYY scores 71/100 on our bottoming-setup gauge — the chart has corrected and is stabilizing (RSI reset, momentum turning up), historically a favorable entry zone. Wall Street analysts see significant upside, with an average price target of $90.83 (+17.2%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Quick Decision Summary
Current Position
OVERSOLD
Historical Trading Range
$78.23 -
$82.40
Company Quality Score
68/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
88.1%
Protect Your Profits
Holding SYY? Use our AI-powered strategies to protect your downside while keeping your long-term position.
Sysco is the largest US foodservice distributor with 17% share of the highly fragmented $370 billion domestic market. It distributes roughly 500,000 food and nonfood products to restaurants (60% of fiscal 2025 revenue), education and government buildings (8%), healthcare facilities (8%), travel and leisure (7%), and other locations (17%) where individuals consume away-from-home meals. In fiscal 2025, 70% of the firm's revenue was derived from its US foodservice operations, while its international (18%), quick-service logistics (10%), and other (2%) segments contributed the rest.