Sysco (SYY) is Among the Highest Rated Value Stocks: Is It Worth Purchasing?

Maximize Your Investing Potential with Zacks Premium

Whether you're new to investing or have years of experience, making the most of the stock market and investing with assurance are universal ambitions. Zacks Premium offers a variety of resources to help you achieve these goals.

This service provides daily updates on Zacks Rank and Industry Rank, unrestricted access to the Zacks #1 Rank List, comprehensive Equity Research reports, and specialized stock screening tools. These features are designed to empower you to make smarter, more confident investment decisions.

Subscribers also benefit from the Zacks Style Scores, which add another layer of insight.

Understanding Zacks Style Scores

Created to complement the Zacks Rank, the Zacks Style Scores are additional metrics that evaluate stocks using three popular investment strategies. These scores assist investors in identifying stocks with the highest probability of outperforming the market in the coming month.

Stocks are rated from A to F based on their value, growth, and momentum attributes. Higher scores indicate a greater likelihood of strong performance—A is superior to B, B is better than C, and so forth.

The Style Scores are divided into four distinct categories:

Value Score

Value investors seek out undervalued stocks before their true worth is recognized by the broader market. The Value Score utilizes ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow, among others, to pinpoint stocks that are both appealing and currently trading at a discount.

Growth Score

Growth investors prioritize a company's financial health and future prospects. The Growth Score analyzes both projected and historical earnings, sales, and cash flow to highlight stocks with the potential for sustained, long-term growth.

Momentum Score

Momentum investors focus on capitalizing on price trends, whether upward or downward. The Momentum Score considers factors like weekly price changes and monthly shifts in earnings estimates to help identify optimal moments to invest in high-momentum stocks.

VGM Score

If you prefer a blended approach, the VGM Score combines all three Style Scores into one comprehensive metric. This score evaluates stocks based on their weighted value, growth, and momentum characteristics, helping you find companies with the most attractive overall profiles.

Integrating Style Scores with Zacks Rank

The Zacks Rank is a proprietary system that uses changes in earnings estimates to simplify building a successful portfolio.

Stocks rated #1 (Strong Buy) have achieved an average annual return of +23.86% since 1988, more than twice the performance of the S&P 500 over the same period. However, with over 200 companies holding a Strong Buy rating and another 600 with a #2 (Buy) rating on any given day, choosing the right stocks can be daunting.

This is where Style Scores become invaluable.

To maximize your chances of success, focus on stocks with a Zacks Rank of #1 or #2 and Style Scores of A or B. If you’re interested in a stock with a #3 (Hold) rating, ensure it also has high Style Scores to enhance its upside potential.

Since Style Scores are designed to work alongside the Zacks Rank, any shift in a company’s earnings outlook should influence your investment choices.

For example, stocks rated #4 (Sell) or #5 (Strong Sell), even with high Style Scores, are likely to face declining earnings and falling share prices.

Therefore, owning more stocks with a #1 or #2 Rank and top Style Scores increases your likelihood of achieving strong returns.

Featured Stock: Sysco (SYY)

Sysco Corporation, based in Houston, Texas, operates through its subsidiaries to supply a wide range of food and related products primarily to the foodservice industry. The company serves around 425,000 clients, including restaurants, healthcare and educational institutions, hotels, and other foodservice providers.

Currently, SYY holds a #3 (Hold) rating on the Zacks Rank and a VGM Score of B.

Its Value Style Score is also B, reflecting favorable valuation metrics such as a forward P/E ratio of 18.36, making it appealing to value-focused investors.

In the past 60 days, four analysts have raised their earnings estimates for fiscal 2026, and the Zacks Consensus Estimate has increased by $0.03 to $4.59 per share. SYY has also delivered an average earnings surprise of +0.7%.

With strong Zacks Rank and impressive Value and VGM Scores, Sysco deserves consideration from investors.

Top Analyst’s "Best Pick to Double"

Among thousands of stocks, five Zacks experts have each selected their top choice expected to surge by 100% or more in the coming months. From these, Director of Research Sheraz Mian has singled out one stock with the greatest potential for explosive growth.

This company targets millennial and Gen Z consumers, generating nearly $1 billion in revenue last quarter. A recent dip in its share price presents a timely opportunity to invest. While not every elite pick succeeds, this stock could outperform previous Zacks selections like Nano-X Imaging, which soared +129.6% in just over nine months.