With a market cap of approximately $39.7 billion, Texas-based Sysco Corporation (SYY) reigns as the global powerhouse in food service, seamlessly connecting the world’s kitchens to exceptional ingredients and solutions. From restaurants and healthcare centers to educational institutions and lodging establishments, Sysco delivers not just food products but the tools and equipment that fuel the food service and hospitality industries.

Companies worth $10 billion or more are generally described as “large-cap” stocks, and Sysco fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, stability, and influence in the consumer defensive sector. Backed by a team of over 72,000 dedicated colleagues, Sysco operates 334 distribution facilities across the globe, serving approximately 725,000 customer locations. Whether it’s nourishing a table or powering a kitchen, Sysco is the trusted partner in transforming how the world dines away from home.

Shares of this food service company have pulled back just 2.2% from its February highs of $82.89. Over the past three months, SYY stock is up roughly 3.4%, lagging behind the broader S&P 500 Index’s ($SPX) 10.6% gains during the same time frame. 

In the longer term, SYY stock is up roughly 9.8% over the past 52 weeks and 10.9% on a YTD basis, lagging behind SPX’s healthy 31.5% annual gain and 27% return on a YTD basis. 

Yet, SYY stock has been trading above both its 50-day and 200-day moving averages since November end, indicating a bullish price trend. 

After Sysco dropped its fiscal 2025 Q1 earnings results on Oct. 29, which revealed a mixed performance, the company's shares took a nosedive, plunging more than 1% in the subsequent trading session. While the company’s net sales of $20.5 billion increased 4.4% year over year and narrowly exceeded Wall Street projections, the company’s adjusted EPS of $1.09 fell short of the Street’s forecasted bottom-line figure of $1.13 per share.

To emphasize SYY’s underperformance, its rival US Foods Holding Corp. (USFD) has delivered notable returns of 55.8% over the past 52 weeks and 53.1% on a YTD basis. 

Given the stock’s relative underperformance, Wall Street remains cautiously optimistic on SYY. The stock has a consensus rating of “Moderate Buy” from the 16 analysts covering it, and the mean price target of $85.08 suggests a 5% premium to its current levels.