Jim Cramer on Sysco: "The Business Is Clearly Doing Better Than People Thought"

Sysco Corporation (NYSE:SYY) is one of the stocks Jim Cramer shed light on recently. Cramer called the stock “cheap,” as he said:

Next, how about this rally in Sysco, and that’s the SYY kind, the food distributor, not the networking giant. Sysco shot up almost 11% on Tuesday in response to the company’s earnings report that morning. It was a modest top and bottom line beat, but even a small beat was impressive here because Wall Street has been pretty down on the restaurant industry, which… Sysco’s core customer base. Plus, management explained that “January is out of the gate strong.” And they now expect their earnings for fiscal 2026, that’s the 12 month period ending in June, will come in at the high end of their previous forecast. Very interesting to have a January strong. That’s typically not the pattern of the industry.

CEO Kevin Hourican said Sysco was “now solidly in positive volume growth territory,” and he expects “continued positive momentum for the second half of the year,” meaning the first six months of calendar 2026. I gotta tell you, this was a name that had fallen off my radar… because of the worries about the consumer and the status of the restaurant industry. But Sysco’s cheap, trading 18 times this year’s earnings estimates, with a decent 2.6% yield, and the business is clearly doing better than people thought.

Sysco Corporation (NYSE:SYY) distributes food products, including meats, produce, and frozen meals, to restaurants, healthcare facilities, and schools. The company also supplies other items, such as kitchen equipment, tableware, and cleaning supplies.

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