Aided by a strong bullish backdrop for the broader market, Symbotic (SYM -1.37%) stock posted double-digit gains Thursday. The robotics and automation specialist's share price rose 13.5% in a day of trading that saw the S&P 500 index's level increase 0.8% and the Nasdaq Composite's level rise 1%.
Symbotic stock has been on a huge rally recently, and its stock is now up 102% year to date. The stock has surged as warehouse automation and robotics plays have gained momentum, but there may be good reason for the hype in this case.
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Symbotic stock rises on bullish macroeconomic indicators
The S&P 500 and Nasdaq Composite each rose to record new levels in Thursday's trading, and Symbotic stock surged in conjunction with the broader bullish momentum. The U.S. Bureau of Labor Statistics' jobs report showed that 147,000 non-farm jobs were added in June, which came in significantly better than 110,000 additions that had been forecasted. At the same time, there was nothing in the jobs report that raised inflationary fears or caused investors to worry that the Federal Reserve might be less likely to cut interest rates in the near future.
What's next for Symbotic?
With the company's last quarterly report, sales increased roughly 40% year over year to hit $550 million. While sales are expected to decline on a sequential quarterly basis to between $520 million and $540 million, the midpoint of that guidance range still suggests annual growth of roughly 12%.
Symbotic's sales growth trajectory might look somewhat uneven in the near term, but the company's long-term expansion outlook appears very promising. In addition to scoring continued wins through its partnership with Walmart, the company should also have the opportunity to substantially increase its business with other customers.
