StockCall Study on Sysco and United Natural Foods: Food Distribution Companies Growing

Feb 22, 2013, 08:00 ET from

LONDON, February 22, 2013 /PRNewswire/ --

Food retail and distribution segment is growing and major companies are able to provide good returns to their investors. Companies like Sysco Corporation (NYSE: SYY) are seeing their financials improve and consequently, their stock prices are also soaring. The company is also garnering hedge fund interest. On the other hand, United Natural Foods Inc. (NASDAQ: UNFI) is riding a positive wave. The company distributes organic and specialty food products and deals with biggest names in the segment. Its overall growth is impressive and the company is expected to keep up the momentum. StockCall free coverage on Sysco and United Natural Foods is available upon registration at

United Natural Foods Inc. to Announce Q2 Results

United Natural Foods Inc. is scheduled to report its second quarter results on February 26th. The company is expected to announce positive results. It is growing at a good pace as the company exit Small-Cap Index and was included in Mid-Cap 400 Index. The company is uniquely placed as most of its peers tend to be regional in presence, whereas United Natural Foods Inc. is operational countrywide. It collaborates with major food store chains like The Fresh Market and Whole Foods. Register now and get access to the free analysis on United Natural Foods Inc. at  

While the company holds a leadership position in its segment it also faces challenges from the emerging trend of direct distribution. This is not likely to be the immediate threat to United Natural Foods Inc. Additionally, its nearest rival KeHE Distributors is significantly smaller in size. The company has a solid track record of growing its revenue by 16 percent in the past 10 years. Its same-store sales growth is also equally impressive. The stock is up 18.5 percent in the past 52 weeks and is likely to maintain the momentum. United Natural Foods Inc. is also likely to benefit from the growing trend of healthy and natural living and the increasing demand for organic food products.

Sysco Corporation Hits New 52-Week High

Sysco Corporation is currently in a bullish phase and has been hitting new 52-week highs. However, its stock price appreciation is not the only way Sysco Corporation is increasing its stockholders' value. The company also recently announced its dividend at 28 cents per share. The dividend is payable on April 26th and with this dividend, the company now has dividend yield of 3.43 percent. Coupled with price growth of 11 percent in the past 52 weeks, the stock is an attractive investment option. Download the free technical research on Sysco Corp. by signing up at

Sysco Corporation is one the biggest players in foodservice marketing and distribution segment. It has a good track record and is firmly set on its growth trajectory. However, due to increasing competition, it may see its margins erode. The company's fundamentals are strong and its stock forms one of the biggest holdings of Yacktman Asset Management. The investment firm invested about 5 percent of its total assets in the company. Institutional holding and hedge fund buying is a good omen for any stock. Investor Israel Engalnder is also optimistic about the future performance of the stock.

Sysco Corporation is also aggressively growing through acquisitions as it already spent $200 million for this purpose so far in this year. Overall, the stock has good growth potential.

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