Home Substantial portion While Symbotic (NASDAQ:SYM) shareholders are in the 1-year black, those who bought a week ago aren’t so lucky

While Symbotic (NASDAQ:SYM) shareholders are in the 1-year black, those who bought a week ago aren’t so lucky

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Symbotic Inc. (NASDAQ:SYM) shareholders might be rather worried as the stock price has fallen 33% in the past month. But with the hindsight of last year, the feedback has been rather encouraging! During this period, we have seen the stock easily outperform the market return, gaining 27%.

Given that long-term performance has been good but there has been a recent pullback of 15%, let’s see if the fundamentals match the stock price.

However, if you’re not interested in researching what drove SYM’s performance, we have a free list of interesting investment ideas to potentially inspire your next investment!

Symbotic is currently unprofitable, so most analysts would look to revenue growth to get a sense of how fast the underlying business is growing. When a business is not making a profit, you generally expect to see good revenue growth. Indeed, rapid revenue growth can be easily extrapolated to predict profits, often of considerable size.

Last year, Symbotic saw its revenue increase by 108%. That’s skyrocketing growth, even compared to other loss-making stocks. While the 27% year-over-year share price gain is pretty tasty, you could argue that it doesn’t fully reflect the strong revenue growth. So, frankly, now might be a good time to investigate Symbotic in detail. Human beings have a hard time conceptualizing (and valuing) exponential growth. Is that what we see here?

The graph below illustrates the evolution of income and income over time (reveal the exact values ​​by clicking on the image).

NasdaqGM: SYM Earnings and Revenue Growth August 28, 2022

Symbotic is well known to investors and many smart analysts have tried to predict future profit levels. We therefore recommend that you consult this free report showing consensus forecast

A different perspective

Symbolic shareholders should be satisfied with the total gain of 27% over the last twelve months. A substantial portion of this gain has come in the past three months, with the stock rising 24% over that time. Demand for shares from multiple parties drives the price up; word may be spreading about its virtues as a business. While it is worth considering the various impacts that market conditions can have on the stock price, there are other, even more important factors. For example, we have identified 3 warning signs for Symbotic (2 are concerning) that you should be aware of.

Sure, you might find a fantastic investment by looking elsewhere. So take a look at this free list of companies that we believe will increase their profits.

Please note that the market returns quoted in this article reflect the average market-weighted returns of stocks currently trading on US exchanges.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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