Sysco, acting through its subsidiaries and divisions, is a distributor of food and related products to the foodservice or food-away-from-home industry. Co. has three segments: U.S Foodservice Operations, which includes U.S. Broadline operations, which distribute a line of food products, including custom-cut meat, seafood, specialty produce, specialty imports and a variety of non-food products; International Foodservice Operations, which includes operations in the Americas and Europe, which distribute a line of food products and a variety of non-food products; and SYGMA, which is Co.'s United States customized distribution operations serving quick-service chain restaurant customer locations.
When researching a stock like Sysco, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from SYY Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for SYY stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the SYY 200 day moving average ("SYY 200 DMA"), while one of the most popular "shorter look-backs" is the SYY 50 day moving average ("SYY 50 DMA"). A chart showing both of these popular moving averages is shown on this page for Sysco. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the SYY 200 DMA and the SYY 50 DMA, we get a moving average convergence divergence indicator ("SYY MACD"). The SYY MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart). |