SYM vs. COHR: Which Technology Services Stock Has an Edge?

Core Insights - Symbotic (SYM) and Coherent Corp. (COHR) are prominent players in the Zacks Technology Services industry, with SYM focusing on AI-enabled robotics for supply chain operations and COHR on advanced optical and semiconductor technologies [1][2] Group 1: Symbotic (SYM) - SYM has a significant backlog of $22.4 billion, positioning it for substantial revenue generation in the near future [5] - The company reported a 26% year-over-year revenue increase, with expectations of revenues between $590 million and $610 million for the fourth quarter of fiscal 2025 [6] - SYM's partnership with Walmart is crucial, contributing significantly to its revenues, but poses customer concentration risks [8] - Despite revenue growth, SYM has a history of negative earnings surprises, with an average negative surprise of 78.3% over the last four quarters [7] Group 2: Coherent Corp. (COHR) - COHR experienced a 23% revenue increase in fiscal 2025, driven by AI datacenter demand and telecom recovery [9] - The company is advancing its product offerings, including new 1.6T transceivers, which are expected to contribute positively to revenues in fiscal 2026 [10] - COHR has consistently outperformed earnings estimates, with an average beat of 13% over the past four quarters [11] - COHR's valuation is more attractive compared to SYM, trading at a forward price-to-sales multiple of 2.1 versus SYM's 10.33 [14] Group 3: Market Performance and Valuation - Over the past month, SYM shares have declined over 5%, while COHR shares have seen a more significant decline [12] - Concerns regarding COHR's market share in datacom offerings have contributed to its stock performance [12] - COHR's attractive valuation and strong product portfolio make it a more appealing investment compared to SYM [16]