Here’s What You Need to Know
The most recent trading session ended with Salesforce.com (CRM) standing at $277.52, reflecting a +0.31% shift from the previouse trading day’s closing. The stock outperformed the S&P 500, which registered a daily loss of 0.02%. Elsewhere, the Dow saw a downswing of 0.21%, while the tech-heavy Nasdaq appreciated by 0.29%.
Shares of the customer-management software developer witnessed a loss of 6% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 1.39% and the S&P 500’s gain of 1.29%.
Analysts and investors alike will be keeping a close eye on the performance of Salesforce.com in its upcoming earnings disclosure. The company’s earnings report is set to go public on May 29, 2024. On that day, Salesforce.com is projected to report earnings of $2.38 per share, which would represent year-over-year growth of 40.83%. At the same time, our most recent consensus estimate is projecting a revenue of $9.14 billion, reflecting a 10.82% rise from the equivalent quarter last year.
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.
Any recent changes to analyst estimates for Salesforce.com should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering 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 #2 (Buy).
Looking at valuation, Salesforce.com is presently trading at a Forward P/E ratio of 28.48. This represents a discount compared to its industry’s average Forward P/E of 28.97.
Investors should also note that CRM has a PEG ratio of 1.63 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. As the market closed yesterday, the Computer – Software industry was having an average PEG ratio of 2.4.
The Computer – Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 89, finds itself in the top 36% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Salesforce Inc. (CRM) : Free Stock Analysis Report
