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Salesforce.com (CRM) Stock Moves -0.03%: What You Should Know

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Salesforce.com (CRM - Free Report) closed at $260.15 in the latest trading session, marking a -0.03% move from the prior day. This change traded in line with S&P 500. Elsewhere, the Dow lost 0.24%, while the tech-heavy Nasdaq added 0.04%.

Prior to today's trading, shares of the customer-management software developer had 0% over the past month. This has lagged the Computer and Technology sector's gain of 6.07% and the S&P 500's gain of 3.1% in that time.

Wall Street will be looking for positivity from CRM as it approaches its next earnings report date. This is expected to be December 1, 2020. In that report, analysts expect CRM to post earnings of $0.74 per share. This would mark a year-over-year decline of 1.33%. Our most recent consensus estimate is calling for quarterly revenue of $5.25 billion, up 16.25% from the year-ago period.

CRM's full-year Zacks Consensus Estimates are calling for earnings of $3.74 per share and revenue of $20.77 billion. These results would represent year-over-year changes of +25.08% and +21.48%, respectively.

It is also important to note the recent changes to analyst estimates for CRM. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. CRM is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note CRM's current valuation metrics, including its Forward P/E ratio of 69.52. For comparison, its industry has an average Forward P/E of 33.41, which means CRM is trading at a premium to the group.

Also, we should mention that CRM has a PEG ratio of 4.44. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Software industry currently had an average PEG ratio of 2.48 as of yesterday's close.

The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 119, putting it in the top 47% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


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