14 Best FMCG Stocks To Buy Now

10. Sysco Corporation (NYSE:SYY)

Number of Hedge Fund Holders: 46

Sysco Corporation (NYSE:SYY), the largest wholesale food distributor in the United States, is a multinational corporation involved in the marketing and distribution of food products, smallwares, kitchen equipment, and tabletop items to a variety of establishments, including restaurants, healthcare facilities, and educational institutions.

In its latest earnings release, Sysco Corporation (NYSE:SYY) provided a strong outlook for the full fiscal year. The company reported a 2.7% year-over-year revenue growth to $19.4 billion, while its adjusted EPS increased by 6.7% to $0.96, slightly surpassing the consensus estimate of $0.95. However, revenue fell short of analysts’ expectations by $286 million.

Sysco Corporation (NYSE:SYY) currently offers a quarterly dividend of $0.51 per share, up from $0.50, yielding 2.87%. As a Dividend King, Sysco has achieved 54 consecutive years of dividend growth.

At the end of March 2024, 46 hedge funds tracked by Insider Monkey held stakes in Sysco Corporation (NYSE:SYY), an increase from the 39 in the previous quarter. These holdings were collectively valued at over $937.3 million.

Aristotle Capital’s Value Equity Strategy stated the following regarding Sysco Corporation (NYSE:SYY) in its first quarter 2024 investor letter:

“During the quarter, we sold our positions in Phillips 66 and Sysco Corporation (NYSE:SYY) and invested in two new positions: Lowe’s Companies and TotalEnergies.

We have owned Sysco, one of the largest food distribution companies in the world, since the fourth quarter of 2022. During our holding period, Sysco’s CEO Kevin Hourican has made progress transforming various aspects of the business, including implementing new technologies able to assist customers with their own changing menus and needs. Through leveraging its scale and purchasing power, we continue to view Sysco as well positioned to gain further share of the highly fragmented U.S. food distribution market, all while sustaining its more than 50-year streak of increasing dividends. Though the company meets each of our criteria for investment, we decided it was the best candidate for sale to fund the purchase of Lowe’s Companies, which we believe is a more optimal investment.”