5-Star Stocks Poised to Pop: SYSCO

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Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, food distributor SYSCO (NYSE: SYY) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at SYSCO's business and see what CAPS investors are saying about the stock right now.

SYSCO facts

Headquarters (founded)

Houston, Texas (1969)

Market Cap

$14.19 billion

Industry

Food distribution

TTM Revenue

$37.5 billion

Management

CEO Bill DeLaney, III (since June 2009)
COO Kenneth Spitler (since July 2007)

Return on Equity (average, last three years)

32%

Dividend Yield

4%

Competitors

United Natural Foods (Nasdaq: UNFI)
Nash Finch (Nasdaq: NAFC)

CAPS members bullish on SYY also bullish on:

Procter & Gamble (NYSE: PG)
General Electric (NYSE: GE)

CAPS members bearish on SYY also bearish on:

Starbucks (Nasdaq: SBUX)
Home Depot (NYSE: HD)

Sources: Capital IQ (a division of Standard & Poor's), and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, 849 of the 879 members who have rated SYSCO -- 97% -- believe the stock will outperform the S&P 500 going forward. These bulls include Forbajato and All-Star Value1000, who is ranked in the top 20% of our community.

In late June, Forbajato listed several of the stock's tasty traits:

I love companies that make basic products or services that huge numbers of people use everyday. Sysco sells food and products to the restaurant industry, number one in its space, boring business, good dividend.

In an earlier pitch, Value1000 elaborates on SYSCO's appetizing advantages:

The distribution business is all about size and scale. Sysco is the undisputed top dog in the industry. The company is investing in things that make it more efficient (i.e. better software, new warehouses, and trucks). This move will allow the company to defend margins. … Even in a protracted downturn this company should be better insulated that its rivals since restaurants only compose 60% of the company's revenues. The rest of the sales come from customers with more reliable demand picture. This environment should allow the company to make some tuck-in acquisitions.

What do you think about SYSCO, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. SYSCO, Starbucks, and Home Depot are Motley Fool Inside Value selections. SYSCO is also an Income Investor pick, as is Procter & Gamble. The Fool owns shares of Procter & Gamble and Starbucks. The Fool's disclosure policy always gets a perfect score.

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