In the latest close session, Samsara Inc. (IOT) was down 5% at $30.58. The stock's performance was behind the S&P 500's daily gain of 0.41%. On the other hand, the Dow registered a loss of 0.83%, and the technology-centric Nasdaq increased by 0.91%.
The stock of company has fallen by 11.27% in the past month, lagging the Computer and Technology sector's gain of 0.49% and the S&P 500's gain of 0.38%.
Market participants will be closely following the financial results of Samsara Inc. in its upcoming release. It is anticipated that the company will report an EPS of $0.13, marking a 18.18% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $422.09 million, indicating a 21.89% growth compared to the corresponding quarter of the prior year.
IOT's full-year Zacks Consensus Estimates are calling for earnings of $0.51 per share and revenue of $1.6 billion. These results would represent year-over-year changes of +96.15% and +27.83%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Samsara Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Samsara Inc. is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note Samsara Inc.'s current valuation metrics, including its Forward P/E ratio of 63.29. This signifies a premium in comparison to the average Forward P/E of 24.04 for its industry.
Also, we should mention that IOT has a PEG ratio of 1.43. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.42.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 78, putting it in the top 32% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Samsara Inc. (IOT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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