IPO Stock Of The Week Stages Powerful Breakout

IPO Stock Of The Week Samsara (IOT) is one of IBD’s best stocks to buy and watch after a strong breakout. IOT stock is on IBD’s IPO Leaders screen.

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Samsara provides sensors and cloud-based software to manage vehicle fleets and industrial operations. Further, its “Internet of Things” platform provides global positioning tracking for trucks, and monitors routes and vehicle performance.

In-cab, dual-facing cameras provide real-time video streaming. Also, artificial intelligence software at cloud data centers detects high-risk behavior, such as distracted driving and lane departure.

More recently, Samsara has targeted another market — monitoring industrial equipment and government operations with its Internet of Things platform. Samsara IoT data sensors and video cameras monitor activity at construction sites and factory floors.

Results Beat Expectations

On Nov. 30, Samsara reported third-quarter earnings and revenue that topped Wall Street targets while the company’s sales outlook came in above expectations.

For the quarter ended Oct. 31, San Francisco-based Samsara reported profit of 4 cents per share on an adjusted basis vs. a 2-cent loss a year earlier. Meanwhile, revenue rose 40% to $237.5 million, the company said. Analysts expected Samsara to record a 1-cent profit on sales of $224.7 million.

IOT stock boasts a solid 95 IBD Composite Rating out of a best-possible 99. Its recent gains make it a top IPO stock to buy and watch.

IOT Stock Breaks Out

Shares are breaking out past a 32.41 buy point in a cup base, according to IBD MarketSmith chart analysis. Shares are in their 5% buy area that tops out at 34.03.

Since bottoming on Nov. 1, IOT stock has rallied as much as 68% to this week’s highs. That shows big institutional demand.

Meanwhile, the relative strength line shot to new highs on the Dec. 1 breakout day. That confirms IOT stock as a market leader.

With the stock market in an uptrend, investors should be looking for the best stocks to buy and watch.

Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the stock market.

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