Sysco Corporation (NYSE:SYY) shares earlier hit an all-time high of $80.99, and were last seen up 0.9% at $80.58, as the food distributor prepares to report earnings before the open on Monday, Nov. 4. SYY stock has added 28.6% year-to-date, and recent earnings history points to more upside for the security. That is, the stock has closed higher the day after earnings in three straight quarters.
Options traders have been targeting long puts before the event, maybe a sign of shareholders trying to hedge and protect paper profits, given the security's long-term success. Either way, Sysco has a 10-day put/call volume ratio of 1.19 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks in the 79th annual percentile. If these bearish positions begin to unwind, it would help SYY on the charts.
But these traders aren't the only bears around the stock. Short interest has continued to rise, up another 14.7% in the last two reporting periods, and now accounts for almost four days' worth of buying power, based on the average daily trading volume. This suggests there's room for a short squeeze to help Sysco, too.
If all that wasn't enough, analysts remain overwhelmingly bearish on the shares. In fact, just two of the seven covering brokerage firms recommend buying the stock, and the average 12-month price target of $77.73 is now below current trading levels. This sets up SYY for post-earnings bull notes, in the form of upgrades and/or price-target hikes.