Sysco (SYY): Evaluating Valuation After West Coast Teamsters Authorize Strike Action

Sysco (SYY) is facing increased labor pressures as more than 400 Teamsters in San Francisco have unanimously authorized a strike if contract negotiations stall, reflecting similar moves in Portland last week.

See our latest analysis for Sysco.

Despite the labor uncertainty making headlines, Sysco's share price has shown resilience, recently closing at $79.91. The stock’s total shareholder return over the past year is a solid 9.9%, and its five-year total return sits at an impressive 49.5%. While short-term price action has been a bit mixed, the longer-term performance suggests that investor confidence remains intact, even with new risks surfacing.

If this kind of industry shake-up has you wondering what else might be stirring, it’s the perfect opportunity to discover fast growing stocks with high insider ownership

With labor unrest and strike risks looming just as Sysco posts steady returns, investors may wonder whether these headwinds are already reflected in the share price or if there is still untapped upside. Could this be a buying opportunity, or is the market already pricing in future growth?

Most Popular Narrative: 6.6% Undervalued

According to the most widely followed narrative, Sysco's fair value sits notably above its last close of $79.91, signaling room for upside if expectations hold true. This narrative draws its conclusion using a discount rate of 7.4% and blends consensus financial forecasts with market dynamics.

"Sysco is focused on improving its sales consultant workforce, with new hires becoming more productive and a strategic shift in compensation model, which is expected to enhance revenue and earnings starting in fiscal 2026. The company is expanding its fulfillment capacity with new facilities in Florida and internationally in Sweden and Ireland, boosting its storage and distribution ability to capture profitable revenue growth in key markets."

Read the complete narrative.

What if doubling down on a new workforce model and global expansion actually unlocks hidden growth? The answer is buried in a bold blend of market share and margin forecasts. Want to know which levers really tip the scales for Sysco’s fair value? See for yourself.

Result: Fair Value of $85.6 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent sales consultant turnover and weak consumer confidence remain real hurdles that could hinder Sysco’s future revenue growth and earnings momentum.

Find out about the key risks to this Sysco narrative.

Build Your Own Sysco Narrative

If the consensus view isn't convincing, or you prefer to chart your own course, it only takes a few minutes to build your own perspective, your way. Do it your way

A great starting point for your Sysco research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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