Jim Cramer’s 12 Stock Calls and the Impact of Bond Market

6. Sysco Corporation (NYSE:SYY)

Sysco Corporation (NYSE:SYY) is among Jim Cramer’s stock calls as he discussed the impact of the bond market. Cramer highlighted the possible impact of the company’s Jetro deal, as he stated:

Last week, Sysco Corporation, SYY kind, made a big move and Wall Street doesn’t seem to like it. The food distribution kingpin announced that it’s acquiring Jetro Restaurant Depot, for $29 billion in cash and stock. Sysco plunged from $81 to $69 on the news. And while it’s rebounded to $73 today, it’s still down. I think this is nuts, and I say that as someone with experience both as an innkeeper and a restaurateur. If you’re a restaurant, you go to Sysco to keep yourself supplied long term. Jetro, meanwhile, is where you go when you’re in a jam or if you own a small scale restaurant or an inn.

It’s got 166 locations across 35 states. You combine both these assets into one company and you’ve got the entire restaurant industry over a barrel. It’s perfect. According to management, this deal should increase their revenue by 20% and their free cash flow by 55%. Sysco says it will result in mid to high single digit increases just in the first year and a low to mid-teens increase in year two. Plus, even before we learned about the merger, Sysco was doing incredibly well. That’s why I think this stock’s such a steal after the sell-off.

Sysco Corporation (NYSE:SYY) distributes food products, including meats, produce, and frozen meals, to restaurants, healthcare facilities, and schools. The company also supplies other items, such as kitchen equipment, tableware, and cleaning supplies.

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