Betting on a Low-Profile Food Service Giant

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world.

This week’s Alpha Algorithm flagged a stock that has flown far below most investors’ radar screens. Although you may not have ever heard of it, Sysco Corporation (SYY) boasts three times the market capitalization of higher-profile Whole Foods Markets (WFM), which is broadly in the same sector. Sysco’s stock has only recently broken away from the broader market and offers the prospect of solid gains in the months ahead.

Founded in 1969 and headquartered in Houston, Texas, Sysco Corporation (SYY) distributes a line of frozen foods, paper products, cookware and restaurant and kitchen equipment. It serves restaurants, hospitals, schools, colleges and other food service customers. Sysco operates 197 distribution facilities in the United States, Bahamas, Canada and Ireland.


Sysco Corporation (SYY) versus the S&P 500 Year to Date

Six Top Investment Strategies Betting on Sysco Corporation (SYY)

  1. Momentum Factor

The stock is one of the top 120 large- and mid-cap U.S. stocks exhibiting relatively higher price momentum, as measured by a specific factor which has historically driven a significant part of companies’ risk and return.

  1. Dividend Aristocrat

The stock is among those in the S&P 500 that have increased dividends for at least 25 consecutive years.

  1. High and Steady Dividend

The stock is one of 50 dividend-paying companies from the S&P 1,500 Composite Index that has increased dividends for at least 20 consecutive years.

  1. Insider and Analyst Sentiment

It is one of 100 top stocks out of 5,000 U.S stocks where corporate insiders (a director or senior officer of a company, or any person or entity that owns more than 10% of the company’s stock) is buying the stock and Wall Street analysts have recently increased earnings estimates.

  1. Large-Cap Growth

The stock is among the top 50 large-capitalization U.S. growth stocks generated through a rigorous 10-factor fundamental screening process.

  1. Float and Leverage Shrink

This stock is expected to outperform the benchmark Russell 3000 based on its decreasing number of outstanding shares, increasing free cash flow and shrinking leverage.


Buy Sysco Corporation (SYY) at market today. Place your initial stop at $48.50.

I am holding off on recommending options at this time.

Portfolio Update

Several of your positions are now oversold, and ripe for call option purchases.

At the same time, because August and September are seasonally among the toughest months of the year, I am going to hold off on recommending any new options at this time.


Nicholas Vardy

Nicholas A. Vardy

share on:

Like This Article?
Now Get Our FREE Special Report:
Alternative Investing: Investing in Timber

Stock Investor editor Paul Dykewicz reveals why investing in timber may be one of the best long-term portfolio strategies you'll find today.

Get Access to the Report, 100% FREE

share on:


Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Options Alert
  • Hi-Tech Trader

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • High Velocity Options
  • Intelligence Report
  • Bullseye Stock Trader
  • Eagle Eye Opener

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Stock of the Week
  • Technical Traders Alert
  • Rapid Profits Stock Trader

Used by financial advisors and individual investors all over the world, is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor