SYY Should I Buy
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Sysco Corp (SYY) is not a strong buy for a beginner investor seeking long-term growth at this moment. While the stock has shown recent bullish momentum and positive analyst sentiment, the overbought RSI and lack of significant growth in financial performance suggest waiting for a better entry point. The investor's impatience and unwillingness to wait for optimal entry points make this a hold recommendation for now.
The stock is currently in a bullish trend with MACD positively expanding and moving averages indicating upward momentum (SMA_5 > SMA_20 > SMA_200). However, the RSI_6 is at 89.944, signaling an overbought condition. Key resistance levels are at R1: 90.029 and R2: 92.243, with support at S1: 82.863 and S2: 80.649.
Hedge funds are significantly increasing their buying activity, up 167.61% over the last quarter.
Analysts have raised price targets across the board, with multiple firms maintaining Buy or Overweight ratings.
Management's optimistic commentary and raised FY26 EPS guidance indicate confidence in the company's growth trajectory.
RSI indicates the stock is overbought, suggesting limited short-term upside.
Financial performance shows mixed results, with revenue growth of 3.03% YoY but a decline in net income (-4.19% YoY) and EPS (-1.22% YoY).
No recent congress trading data or significant insider activity to support a strong buy.
In Q2 2026, Sysco reported revenue growth of 3.03% YoY to $20.76 billion. However, net income dropped by 4.19% YoY to $389 million, and EPS declined by 1.22% YoY to 0.81. Gross margin improved slightly to 18.26%, up 0.83% YoY.
Analysts are generally positive on SYY, with multiple firms raising price targets recently. Guggenheim, UBS, Jefferies, and Barclays have Buy ratings, with price targets ranging from $87 to $102. However, some firms like Citi and Morgan Stanley maintain Neutral or Equal Weight ratings due to valuation concerns.
