For Immediate Release

Chicago, IL – April 8, 2026 – Zacks Equity Research shares Samsara (IOT Quick QuoteIOT - Free Report) as the Bull of the Day and RH (RH Quick QuoteRH - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Intel Corp. (INTC Quick QuoteINTC - Free Report) , Micron Technology, Inc. (MU Quick QuoteMU - Free Report) and Broadcom Inc. (AVGO Quick QuoteAVGO - Free Report) .

Here is a synopsis of all five stocks:

Bull of the Day:

Samsara, a Zacks Rank #1 (Strong Buy), operates a cloud-based IoT platform that connects vehicles, equipment, and facilities through sensors, helping businesses track, monitor, and optimize their physical operations in real time.

The stock has pulled back with the market after a solid earnings beat that helped the stock erase 2026 losses. After some consolidation, current levels are giving investors a nice opportunity to enter one of the most compelling long-term growth stories in the industrial technology space.

About the Company

Samsara serves a wide range of asset-intensive industries including logistics, construction, utilities, and field services. Its platform addresses critical operational needs across fleet tracking, driver safety, asset monitoring, regulatory compliance, and operations analytics.

What makes Samsara's model attractive is its high recurring revenue base and strong revenue visibility. Once embedded in a customer's operations, the platform becomes deeply mission-critical, driving low churn and expanding wallet share over time. The company now serves customers across multiple verticals with a growing suite of connected products, and multi-product adoption is accelerating.

IOT is valued at $19 billion and has a Forward PE of 47. The stock has Zacks Style Scores of "F" in Value, but "A" in Growth.

Q4 Earnings Beat

Samsara delivered a strong fourth-quarter beat, coming in 38% above EPS expectations. Revenue reached $444 million versus the $422 million consensus, representing continued momentum in a challenging macro environment for industrial spending.

Annual Recurring Revenue hit $1.89 billion, up 30% year-over-year, with $432 million in net new ARR added in the quarter. Notably, this marks three consecutive quarters of accelerating net new ARR growth.

Guidance was constructive across the board. For Q1, the company sees revenue of $454–456 million versus the $445 million consensus, implying 24% year-over-year growth. The bigger story was the full-year fiscal 2027 outlook: revenue guidance of $1.97 billion topped the $1.91 billion consensus, with EPS guided to $0.65–0.69 versus the $0.57 expected.

Management also outlined a path to 19% operating margins. This is a signal that this is no longer just a growth story, but an increasingly profitable and scalable one.

Estimates Head Higher

Analyst estimates have been moving steadily higher in the wake of earnings. For the current year, estimates have risen from $0.57 to $0.68 over the past 30 days. Next year's estimates have moved from $0.71 to $0.84 over the same period, an 18% increase.

On the analyst front, the institutional community remains broadly bullish. Wells Fargo, Piper Sandler, and Keybanc all reiterate Overweight ratings with price targets ranging from $39 to $46. Goldman Sachs reiterates a Buy and raised its target to $41 from $36.

The AI and Data Moat

One of the most underappreciated elements of the Samsara story is the scale of its data infrastructure. The platform now processes 25 trillion data points annually, which is a figure that creates a compounding competitive advantage as the company deploys AI across its product suite.

AI is becoming central to the platform narrative. Products like Safety Coach use this data to deliver real-time driver coaching and risk scoring, and management has outlined a roadmap toward broader automation agents built on top of this foundation. The more data the platform ingests, the smarter and more differentiated the AI layer becomes.

The Technical Take

The stock started trending upward early in 2023, moving from under $10 to $61 early in 2025. Since then the stock had dropped about 50% and started to consolidate around the $30-35 level.

The cloud related sell off took the stock down to three-year lows early this year, but it has rallied since reporting earnings.

The stock is sensitive to moving averages and trades well off those MA's. Let us look at those levels:

21-day: $32.20

50-day: $29.70

200-day: $35.50

The bulls will want to get price above that 200-day and the Fibonacci resistance level at $38. If that level is broken and price holds above $40 long term Fibonacci extension targets indicate price targets at $60.

In Summary

Samsara is executing at a high level across every dimension that matters for a long-term platform investment: accelerating ARR growth, expanding margins, improving profitability, and a widening AI-driven data moat.

The story is evolving from pure hypergrowth to profitable, scalable growth. With a Zacks Rank #1, rising estimates, and broad analyst support, IOT is a name that belongs on every growth investor's radar.

Bear of the Day:

RH is a Zacks Rank #5 (Strong Sell) and the Bear of the Day. Once a darling of the high-end home furnishings space, the company is navigating a difficult combination of earnings disappointment, a weakening near-term outlook, and mounting cost pressures.

About the Company

Formerly known as Restoration Hardware, RH operates as a retailer and lifestyle brand in the home furnishings market. The company sells furniture, lighting, textiles, bath ware, décor, outdoor and garden furnishings, and baby, child, and teen furnishings through galleries, interior design studios, outlets, guesthouses, and showrooms, as well as through hospitality, website, and trade channels.

RH operates through three segments: RH Segment, Waterworks, and Real Estate. Founded in 1980 and headquartered in Corte Madera, California, the company has built a premium brand with a loyal customer base. However, that brand is being tested right now by macro headwinds and self-inflicted execution challenges.

RH has a market cap of $2B, with a Zacks Style Score of "B" in Growth and Value.

Q4 Earnings Miss

RH's fourth quarter was a clear miss. The company reported adjusted EPS of $1.53 against expectations of $2.21, a 31% shortfall. Revenue came in at $843 million versus the $872 million consensus. Management cited approximately $30 million in revenue headwinds from tariff-related resourcing that drove higher-than-expected backorder and special-order balances.

On the margin front there was a silver lining, with adjusted EBITDA margin of 17.7% improved modestly from 17.1% a year ago, and adjusted operating margin ticked up to 11.5% from 11.3%. But the headline miss and the forward guidance overshadowed any positive margin read-through.

For Q1, RH guided revenue growth of -2% to -4% against a consensus expectation of +8%, a dramatic swing in the wrong direction. Adjusted EBITDA margin guidance of 14–15% reflects approximately 420 basis points of drag from pre-opening and startup costs tied to international expansion.

For the full year, RH guided revenue growth of 4–8% versus the 9.6% consensus, with adjusted EBITDA margins of 14–16%. Again, weighed down by roughly 270 basis points of international expansion costs.

The message to investors is clear: the next several quarters will be a show-me period as the company absorbs heavy investment costs before the international buildout begins to contribute meaningfully.

Estimates and Price Targets Fall After Earnings

Ugly revisions to the down side across all time frames. Analysts slashed the current quarter from $0.88 to -$1.49. For the current year, numbers have been taken down from $10.22 to $7.66.

Analyst price target cuts have been swift and broad following the print.

Goldman Sachs reiterated a Sell rating, cutting its target to $88 from $101. Citigroup reiterated Neutral and cut to $150 from $183. Guggenheim cut to $200 from $275 while maintaining its Buy. Barclays cut to $202 from $283 but held its Overweight.

The wide dispersion in price targets reflects genuine uncertainty about how the international expansion plays out, but the direction of revisions is uniformly lower. And Goldman's Sell at $88 is a reminder that meaningful downside remains on the table.

Technical Take

Let's look at some moving averages:

21-day: $130

50-day: $166

200-day: $188

Those moving averages seem unachievable unless the earnings story turns. Looking to the downside the COVID low was in the $75 area, a spot the bears will no doubt be looking for.

In Summary

RH is dealing with a perfect storm of a big earnings miss, a Q1 guide that shocked to the downside, tariff-related disruptions, and a margin profile that will be under pressure for several quarters. Until the company can demonstrate that the international buildout is on track and domestic demand is stabilizing, the stock carries meaningful risk to the downside.

Additional content:

Broadcom Slips 9% — Why Smart Investors Should Buy the Dip Now

Unlike competitors such as Intel Corp. and Micron Technology, Inc., this year has been relatively muted for Broadcom Inc.. Despite sound fundamentals, its shares have shown continued weakness. But could this offer a good entry point for savvy investors? Let's see in detail –

Broadcom Stock: Short-Term Weakness, Long-Term Opportunity

Broadcom's shares have faced pressure this year, primarily due to concerns that its explosive artificial intelligence (AI)-driven growth may slow, prompting investors to take profits. Broadcom's shares have declined 9.2% year to date, while a death cross pattern emerged in the last trading session.

On Monday, the Broadcom stock finished at $314.43, while the 50-day moving average (DMA) was $324.06 below the 200-DMA, which was $326.94. It's a bearish technical pattern, highlighting that the Broadcom stock is losing momentum.

However, investors shouldn't freak out because a death cross often indicates a short-term bearish trend, while Broadcom remains fundamentally strong and well-positioned to recover in the long run. And why not? With a net profit margin of 36.6%, well above the Electronics - Semiconductors industry's 28.6%, Broadcom continues to demonstrate stronger profitability and solid growth potential.

Broadcom remains more efficient in generating profits than its peers. This is because Broadcom's return on equity (ROE) of 47.5% exceeds the industry's ROE of 34.3%.

Moreover, by the time this death cross pattern appeared, much of the downside may already have been priced in, potentially making the Broadcom stock an attractive "buy the dip" opportunity for investors.

Why Broadcom Is a Smart Buy Right Now

Broadcom's consolidated revenues hit a record $19.3 billion in the fiscal first quarter of 2026, up 29% year over year, according to investors.broadcom.com. This showed that despite being a large-cap company, Broadcom can scale revenues.

This growth was largely fueled by its explosive AI business, with AI revenues reaching $8.4 billion, up 106% year over year and surpassing expectations, driven by strong demand for AI networking and custom AI accelerators. This performance confirms Broadcom's position not just as a participant but as a dominant infrastructure player in the AI boom.

With AI demand ramping up, Broadcom further expects its fiscal second-quarter 2026 revenues to reach around $22 billion, with AI semiconductor revenues expected to hit $10.7 billion. At the same time, Broadcom expects an adjusted EBITDA margin of roughly 68% of projected revenues, indicating solid operational efficiency and strong pricing power. Notably, Broadcom's fiscal first-quarter adjusted EBITDA of $13.1 billion already represented 68% of revenues.

Additionally, in the fiscal first quarter, Broadcom produced $8.01 billion in free cash flow, equivalent to 41% of its revenues. This robust cash generation gives the company significant flexibility to reduce debt, reinvest in growth, reward shareholders through dividends, or repurchase shares.

Broadcom Stock to Buy Hand Over Fist

Despite short-term weakness, Broadcom's strong fundamentals, robust AI revenue growth, strong profitability, and solid cash flow position make it a compelling long-term investment. Moreover, the recent price decline offers investors the opportunity to buy the Broadcom stock at a discount.

Broadcom, rightfully, has a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 stocks here.

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