What Investors Need to Know
In the latest market close, Salesforce.com (CRM) reached $273.81, with a +1.27% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.87%. On the other hand, the Dow registered a gain of 0.67%, and the technology-centric Nasdaq increased by 1.11%.
The the stock of customer-management software developer has fallen by 12.15% in the past month, lagging the Computer and Technology sector’s loss of 5.98% and the S&P 500’s loss of 3.97%.
The investment community will be closely monitoring the performance of Salesforce.com in its forthcoming earnings report. The company’s upcoming EPS is projected at $2.38, signifying a 40.83% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $9.14 billion, up 10.82% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $9.71 per share and a revenue of $37.93 billion, demonstrating changes of +18.13% and +8.82%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Salesforce.com. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts’ positivity towards the company’s business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there’s been no change in the Zacks Consensus EPS estimate. As of now, Salesforce.com holds a Zacks Rank of #3 (Hold).
In terms of valuation, Salesforce.com is presently being traded at a Forward P/E ratio of 27.83. This valuation marks a discount compared to its industry’s average Forward P/E of 28.09.
We can additionally observe that CRM currently boasts a PEG ratio of 1.6. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. By the end of yesterday’s trading, the Computer – Software industry had an average PEG ratio of 2.21.
The Computer – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 86, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Salesforce Inc. (CRM) : Free Stock Analysis Report
