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Symbotic Stock Surges 134.5% YTD: Should You Buy Now or Wait?
Symbotic Symbotic (US:SYM) ZACKSยท2025-08-11 17:51

Core Viewpoint - Symbotic (SYM) has experienced a significant stock price increase of 134.5% year-to-date, outperforming its industry peers due to the artificial intelligence trend and strong technical indicators [1][6]. Group 1: Stock Performance - SYM shares have outperformed industry peers, with Coherent Corp. gaining 21.9% and MediaAlpha declining 6.8% in the same period [1]. - Technical indicators show that SYM is trading above its 50-day moving average, indicating strong upward momentum and price stability [3]. Group 2: Financial Metrics - Symbotic has a backlog of $22.4 billion, with expectations to recognize nearly 11% of its remaining performance obligations as revenues in the next 12 months and 56% in the following 13-60 months [8]. - Revenues increased by 26% year-over-year, with expectations for fourth-quarter revenues in the range of $590-$610 million and adjusted EBITDA between $45-$49 million [9]. Group 3: Operational Efficiency - Faster deployment times suggest improved installation processes, leading to decreased labor hours per project and fewer rework incidents [10]. Group 4: Valuation and Risks - SYM's current valuation is considered stretched, with a forward price-to-sales ratio of 12.09X, higher than its industry peers [11]. - The company's reliance on Walmart as its largest customer poses customer concentration risks, despite Walmart's investment in Symbotic [13].