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Why the Market Dipped But Symbotic Inc. (SYM) Gained Today

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The latest trading session saw Symbotic Inc. (SYM - Free Report) ending at $21.65, denoting a +0.7% adjustment from its last day's close. The stock outpaced the S&P 500's daily loss of 0.22%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq lost 0.33%.

The company's stock has dropped by 19.66% in the past month, falling short of the Business Services sector's loss of 10.46% and the S&P 500's loss of 7.48%.

The upcoming earnings release of Symbotic Inc. will be of great interest to investors. The company is forecasted to report an EPS of $0.04, showcasing an 81.82% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $517.91 million, indicating a 22.06% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.25 per share and revenue of $2.27 billion. These totals would mark changes of +412.5% and +21.89%, respectively, from last year.

Investors should also pay attention to any latest changes in analyst estimates for Symbotic Inc. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Right now, Symbotic Inc. possesses a Zacks Rank of #3 (Hold).

With respect to valuation, Symbotic Inc. is currently being traded at a Forward P/E ratio of 87.75. This expresses a premium compared to the average Forward P/E of 21.86 of its industry.

We can additionally observe that SYM currently boasts a PEG ratio of 2.93. 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. As the market closed yesterday, the Technology Services industry was having an average PEG ratio of 1.48.

The Technology Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 68, finds itself in the top 28% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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