10 Worst Performing Stocks to Buy on the Dip

3) Symbotic Inc. (NASDAQ:SYM)

Average Upside Potential: 64.58%

% Fall on a YTD Basis: ~48%

Number of Hedge Fund Holdings: 29

Symbotic Inc. (NASDAQ:SYM) is an automation technology company, which is engaged in developing technologies to improve operating efficiencies in modern warehouses.

Symbotic Inc. (NASDAQ:SYM)’s stock saw a decline of ~48% on the YTD basis as a result of the industry-wide challenges it is exposed to. Moreover, the company continues to face margin pressures as a result of short-term revenue slowdowns because of construction delays and increased labor costs. Also, the company saw a reduction in cash balance because of funding GreenBox and other unrelated expenses. The investors believe that the longer construction schedules and higher implementation costs are some of the reasons for the increased expenses.

On the other hand, market experts opine that Symbotic Inc. (NASDAQ:SYM)’s stock is well-placed for a revival as a result of the plans to internalize some operations to improve margins. The company focuses on in-sourcing its Engineering Procurement Construction (EPC) process in a bid to slash costs and enhance its system integration control. Symbotic Inc. (NASDAQ:SYM) remains optimistic about reaccelerating revenue growth in Q1 2025.

The company has locked in steel prices and is expecting a positive future impact on margins. The market experts are significantly optimistic about Symbotic Inc. (NASDAQ:SYM)’s technology, which not only reduces labor and inventory costs but also supports an unlimited number of customer SKUs. This enhances efficiency and flexibility.

Analysts at Cantor Fitzgerald reaffirmed an “Overweight” rating on the shares of Symbotic Inc. (NASDAQ:SYM), setting a price target of $60.00 on 30^th July. As per Insider Monkey’s Q2 2024 data, the company was in the portfolios of 29 hedge funds.