2007-06-27 07:37:42 · 3 answers · asked by L-A-N-C-E 1 in Business & Finance ➔ Investing
A high quality core stock. Don't expect a lot of growth or price action here. Personally, for me the PE is too high compared to the earnings growth rate. A PE of 14 to 15 would be more appropriate, but the high PE comes from the consistancy of earnings. However, it certainly would be a stock worth holding in a balanced portfolio for those who are proponents of asset allocation and do not like a lot of price volitility.
2007-06-27 08:31:28 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Sysco is near the top of my list. They sell food to institutions. Selling to institutions is a very safe growth industry. They have a large moat of entry protecting against new competitors. They are expanding from being a regional enterprise to a national leader.
The down side is transportation costs. They have shipping costs on both the supplier and customer side. If the price of diesel fuel rises they get pinched.
2007-06-27 19:22:31 · answer #2 · answered by Menehune 7 · 0⤊ 0⤋
it is overvalued, so sell
2007-06-27 16:38:22 · answer #3 · answered by jf 3 · 0⤊ 0⤋