Sysco Corp. (SYY) is up more than 6% today and trading at a new 52-week high after reporting fiscal second-quarter earnings today. EPS of $0.89, vs. $0.80 last year, was $0.01 better than expectations. Revenues rose 3.7%, while lower food costs and the higher sales volume expanded margins and drove an 11.6% increase in operating margins.

The quarter was not spectacular versus expectations, but it was still the typical solid Sysco results. So, investors seem to realize the company still has solid growth prospects that are not priced in the shares yet. At 18X this fiscal year’s EPS estimate of $4.35, SYY still trades at a discount to the S&P 500, which is trading at 21X this year’s EPS estimate. SYY remains a buy below $80. My $92 target is about 19.2X June 2025 estimates of $4.80 a share.