The Price Is Right For Sysco Corporation (NYSE:SYY)
There wouldn’t be many who think Sysco Corporation’s (NYSE:SYY) price-to-earnings (or “P/E”) ratio of 20.2x is worth a mention when the median P/E in the United States is similar at about 19x. Although, it’s not wise to simply ignore the P/E without explanation as investors may be disregarding a distinct opportunity or a costly mistake.
With earnings growth that’s superior to most other companies of late, Sysco has been doing relatively well. One possibility is that the P/E is moderate because investors think this strong earnings performance might be about to tail off. If not, then existing shareholders have reason to be feeling optimistic about the future direction of the share price.
