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Samsara Inc. (IOT) Laps the Stock Market: Here's Why

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In the latest trading session, Samsara Inc. (IOT - Free Report) closed at $37.56, marking a +1.9% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 1.56%. Meanwhile, the Dow experienced a rise of 1.29%, and the technology-dominated Nasdaq saw an increase of 2.21%.

Shares of the company witnessed a loss of 3.66% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 1.06%, and the S&P 500's gain of 0.41%.

The upcoming earnings release of Samsara Inc. will be of great interest to investors. The company is expected to report EPS of $0.12, up 71.43% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $399.44 million, reflecting a 24.06% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.47 per share and revenue of $1.57 billion, which would represent changes of +80.77% and +25.97%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Samsara Inc. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Samsara Inc. presently features a Zacks Rank of #3 (Hold).

With respect to valuation, Samsara Inc. is currently being traded at a Forward P/E ratio of 78.67. This indicates a premium in contrast to its industry's Forward P/E of 28.54.

Meanwhile, IOT's PEG ratio is currently 1.8. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Internet - Software industry stood at 2.09 at the close of the market yesterday.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 77, placing it within the top 32% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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