Symbotic Inc. (SYM) Falls More Steeply Than Broader Market: What Investors Need to Know

In the latest close session, Symbotic Inc. (SYM) was down 4.8% at $50.80. The stock fell short of the S&P 500, which registered a loss of 1.74% for the day. Elsewhere, the Dow lost 1.01%, while the tech-heavy Nasdaq lost 2.38%.

Heading into today, shares of the company had lost 4.95% over the past month, lagging the Business Services sector's loss of 3.4% and outpacing the S&P 500's loss of 4.99%.

The investment community will be closely monitoring the performance of Symbotic Inc. in its forthcoming earnings report. The company's upcoming EPS is projected at $0.11, signifying a 375.00% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $660.6 million, up 20.19% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.48 per share and revenue of $2.76 billion, which would represent changes of -73.63% and +23.04%, respectively, from the prior year.

Any recent changes to analyst estimates for Symbotic Inc. should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Symbotic Inc. currently has a Zacks Rank of #3 (Hold).

With respect to valuation, Symbotic Inc. is currently being traded at a Forward P/E ratio of 111.17. This expresses a premium compared to the average Forward P/E of 16.8 of its industry.

Also, we should mention that SYM has a PEG ratio of 3.71. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Technology Services stocks are, on average, holding a PEG ratio of 1.32 based on yesterday's closing prices.

The Technology Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 185, positioning it in the bottom 25% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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