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Salesforce.com (CRM) Stock Sinks As Market Gains: What You Should Know
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Salesforce.com (CRM - Free Report) closed the most recent trading day at $144.90, moving -1.72% from the previous trading session. This move lagged the S&P 500's daily gain of 1.29%. At the same time, the Dow added 0.8%, and the tech-heavy Nasdaq gained 10.96%.
Prior to today's trading, shares of the customer-management software developer had gained 8.72% over the past month. This has outpaced the Computer and Technology sector's loss of 2% and the S&P 500's loss of 0.23% in that time.
Salesforce.com will be looking to display strength as it nears its next earnings release. In that report, analysts expect Salesforce.com to post earnings of $1.36 per share. This would mark year-over-year growth of 61.9%. Our most recent consensus estimate is calling for quarterly revenue of $7.99 billion, up 9% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.93 per share and revenue of $30.92 billion. These totals would mark changes of +3.14% and +16.73%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Salesforce.com. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.11% higher. Salesforce.com is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that Salesforce.com has a Forward P/E ratio of 29.92 right now. This valuation marks a premium compared to its industry's average Forward P/E of 26.31.
Also, we should mention that CRM has a PEG ratio of 1.79. 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. Computer - Software stocks are, on average, holding a PEG ratio of 2.07 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 61, which puts it in the top 25% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Salesforce.com (CRM) Stock Sinks As Market Gains: What You Should Know
Salesforce.com (CRM - Free Report) closed the most recent trading day at $144.90, moving -1.72% from the previous trading session. This move lagged the S&P 500's daily gain of 1.29%. At the same time, the Dow added 0.8%, and the tech-heavy Nasdaq gained 10.96%.
Prior to today's trading, shares of the customer-management software developer had gained 8.72% over the past month. This has outpaced the Computer and Technology sector's loss of 2% and the S&P 500's loss of 0.23% in that time.
Salesforce.com will be looking to display strength as it nears its next earnings release. In that report, analysts expect Salesforce.com to post earnings of $1.36 per share. This would mark year-over-year growth of 61.9%. Our most recent consensus estimate is calling for quarterly revenue of $7.99 billion, up 9% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.93 per share and revenue of $30.92 billion. These totals would mark changes of +3.14% and +16.73%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Salesforce.com. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.11% higher. Salesforce.com is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that Salesforce.com has a Forward P/E ratio of 29.92 right now. This valuation marks a premium compared to its industry's average Forward P/E of 26.31.
Also, we should mention that CRM has a PEG ratio of 1.79. 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. Computer - Software stocks are, on average, holding a PEG ratio of 2.07 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 61, which puts it in the top 25% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.