Sysco Corporation

SYY
Real-time BATS EXCHANGE - 02/20 01:03:08 pm
76.8USD
+0.85%

Sysco Corporation : Close to a support level

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Patrick Rejaunier
Equity Analyst

Strategy published on : 02/12/2020 | 09:10

long trade on a pullback
On stand-by

Entry price : 75$
Target : 80.55$
Stop-loss : 73.85$
Cancellation Level : 79$
Potential : 7.4%

The Sysco Corporation share is coming back to a technical support zone comprising the lower bound of the trading range. This provides a good timing to go long on the stock.
Investors should buy the stock at current prices near $ 75 in order to target the $ 80.55.

Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.

● The company has solid fundamentals for a short-term investment strategy.


Strengths

● The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at USD 75.05 USD in weekly data.

● Graphically speaking, the timing seems perfect for purchasing the stock close to the USD 72.25 support.

● Considering the small differences between the analysts' various estimates, the group's business visibility is good.

● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.75 for the 2020 fiscal year.

● The stock is in a well-established, long-term rising trend above the technical support level at 75.05 USD


Weaknesses

● The company does not generate enough profits, which is an alarming weak point.

● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.

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