In the latest trading session, Samsara Inc. (IOT) 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.
