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Salesforce.com (CRM) Gains As Market Dips: What You Should Know
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Salesforce.com (CRM - Free Report) closed at $183.79 in the latest trading session, marking a +0.44% move from the prior day. This change outpaced the S&P 500's 0.67% loss on the day. Meanwhile, the Dow lost 1.23%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Heading into today, shares of the customer-management software developer had gained 8.79% over the past month, lagging the Computer and Technology sector's gain of 9.67% and outpacing the S&P 500's gain of 7.79% in that time.
Investors will be hoping for strength from Salesforce.com as it approaches its next earnings release. The company is expected to report EPS of $1.02, down 31.08% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.7 billion, up 21.47% from the prior-year quarter.
CRM's full-year Zacks Consensus Estimates are calling for earnings of $4.75 per share and revenue of $31.73 billion. These results would represent year-over-year changes of -0.63% and +19.78%, respectively.
Investors might also notice recent changes to analyst estimates for Salesforce.com. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.15% lower. Salesforce.com is currently a Zacks Rank #3 (Hold).
In terms of valuation, Salesforce.com is currently trading at a Forward P/E ratio of 38.51. For comparison, its industry has an average Forward P/E of 27.42, which means Salesforce.com is trading at a premium to the group.
We can also see that CRM currently has a PEG ratio of 2.3. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computer - Software was holding an average PEG ratio of 2.18 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Salesforce.com (CRM) Gains As Market Dips: What You Should Know
Salesforce.com (CRM - Free Report) closed at $183.79 in the latest trading session, marking a +0.44% move from the prior day. This change outpaced the S&P 500's 0.67% loss on the day. Meanwhile, the Dow lost 1.23%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Heading into today, shares of the customer-management software developer had gained 8.79% over the past month, lagging the Computer and Technology sector's gain of 9.67% and outpacing the S&P 500's gain of 7.79% in that time.
Investors will be hoping for strength from Salesforce.com as it approaches its next earnings release. The company is expected to report EPS of $1.02, down 31.08% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.7 billion, up 21.47% from the prior-year quarter.
CRM's full-year Zacks Consensus Estimates are calling for earnings of $4.75 per share and revenue of $31.73 billion. These results would represent year-over-year changes of -0.63% and +19.78%, respectively.
Investors might also notice recent changes to analyst estimates for Salesforce.com. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.15% lower. Salesforce.com is currently a Zacks Rank #3 (Hold).
In terms of valuation, Salesforce.com is currently trading at a Forward P/E ratio of 38.51. For comparison, its industry has an average Forward P/E of 27.42, which means Salesforce.com is trading at a premium to the group.
We can also see that CRM currently has a PEG ratio of 2.3. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computer - Software was holding an average PEG ratio of 2.18 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.