We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Zacks Investment Ideas feature highlights: Salesforce and Splunk
Read MoreHide Full Article
For Immediate Release
Chicago, IL – March 1, 2023 – Today, Zacks Investment Ideas feature highlights Salesforce (CRM - Free Report) and Splunk .
2 Tech Stocks to Consider as Earnings Approach
Among the Zacks Computer and Technology sector, a few intriguing software companies will be reporting earnings this week.
Furthermore, currently in top-rated Zacks industries here are two of these highly-ranked tech stocks that investors may want to consider buying before their fourth-quarter earnings reports.
Salesforce
Reporting its Q4 earnings on Wednesday, March 1, Salesforce is standing out with CRM stock sporting a Zacks Rank #2 (Buy) and its Computer-Software Industry is currently in the top 35% of over 250 Zacks Industries.
To that note, earnings estimate revisions have nicely gone up for fiscal 2023 and FY24. Fiscal 2023 earnings estimates have increased by 4% over the last 60 days and FY24 EPS estimates have gone up 6% in the last 90 days.
Q4 Preview & Outlook
Salesforce Q4 earnings are expected at $1.36 per share, up a stellar 62% from EPS of $0.84 in Q4 2022. On the top line, fourth-quarter sales are expected to be $7.99 billion, a 9% increase from the prior year quarter.
Salesforce is now expected to round out Fiscal 2023 with EPS up 3% and FY24 earnings are expected to jump another 19% to $5.86 a share. Total sales are now forecasted to climb 17% in FY23 and rise another 10% in FY24 to $34.15 billion. More impressive, fiscal 2024 would represent an outstanding 157% growth from pre-pandemic levels with 2019 sales at $13.28 billion.
Performance & Valuation
Salesforce stock is up +23% year to date, despite still being down -23% over the last year to underperform the S&P 500’s -10% and the Nasdaq’s -16%. However, in the last decade since Salesforce went public, CRM is now up +257% to easily top the benchmark and roughly match the Nasdaq.
Last year’s drop may have certainly been a long-term buying opportunity looking at Salesforce’s historical valuation and forecasted bottom-line growth. Trading at $163 per share, CRM trades at 51.1X forward earnings but this is well below its decade-long high of 812.3X and 64% beneath the median of 144.1X with the rising EPS estimates offering further support.
Splunk
Another tech stock that looks intriguing going into its Q4 earnings report on March 1 is Splunk. The software solutions provider also sports a Zacks Rank #2 (Buy) and its Internet-Software Industry is currently in the top 33% of all Zacks Industries.
Earnings estimates revisions have significantly gone up for Splunk’s FY23 and FY24. Impressively, fiscal 2023 earnings estimates have gone up 79% throughout the quarter and FY24 EPS estimates have risen 46%.
This is a great sign that companies are continuing to rely on Splunk for real-time operations intelligence and to harness the value of their data. Splunk allows businesses to investigate, monitor, analyze, and act on machine data, and big data (irrespective of format or source) which assists with operational decision-making.
Q4 Preview & Outlook
The Zacks Consensus for Splunk’s’ Q4 earnings is $1.11 per share, which would be a 68% increase year over year. Sales for the quarter are expected to be $1.07 billion, up 19% YoY.
Rounding out its fiscal year 2023, Splunk earnings are now forecasted to climb to $1.80 a share compared to EPS of -$1.25 in 2022. Plus, fiscal 2024 earnings are expected to leap another 42% at $2.56 per share.
Sales are now projected to jump 30% in FY23 and rise another 15% in FY24 to $3.99 billion. Fiscal 2024 would be a 119% increase from pre-pandemic levels with 2019 sales at $1.80 billion.
Performance & Valuation
Splunk stock has rallied +19% YTD to largely outperform the broader indexes. Over the last year, SPLK’s -13% drop has trailed the S&P 500’s -11% but beat the Nasdaq’s -16%. Furthermore, Splunk is now up +163% over the last decade to trail the Nasdaq but top the benchmark.
Trading at $101 per share, Splunk stock trades at 39.8X forward earnings. While Splunk does not have a traditional P/E history to compare, its forward earnings are below the industry average of 41.6X.
Plus, Splunk’s PEG ratio is getting closer to the optimum level of less than 1 at 1.33 which is also beneath the industry average of 1.78 and shows the company’s growth rate is favorable in conjunction with its valuation. Splunk’s stock currently sports an “A” Style Scores grade for Growth.
Bottom Line
Rounding out their fiscal 2023, Salesforce and Splunk are two tech stocks that investors should consider buying as the rising earnings estimates revisions for fiscal 2024 indicates there could be more upside to their stellar year-to-date performances. In this regard, Both CRM and SPLK stock could soar even more if the companies can provide strong Q4 reports and guidance that reaffirms the rising earnings estimates.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Zacks Investment Ideas feature highlights: Salesforce and Splunk
For Immediate Release
Chicago, IL – March 1, 2023 – Today, Zacks Investment Ideas feature highlights Salesforce (CRM - Free Report) and Splunk .
2 Tech Stocks to Consider as Earnings Approach
Among the Zacks Computer and Technology sector, a few intriguing software companies will be reporting earnings this week.
Furthermore, currently in top-rated Zacks industries here are two of these highly-ranked tech stocks that investors may want to consider buying before their fourth-quarter earnings reports.
Salesforce
Reporting its Q4 earnings on Wednesday, March 1, Salesforce is standing out with CRM stock sporting a Zacks Rank #2 (Buy) and its Computer-Software Industry is currently in the top 35% of over 250 Zacks Industries.
To that note, earnings estimate revisions have nicely gone up for fiscal 2023 and FY24. Fiscal 2023 earnings estimates have increased by 4% over the last 60 days and FY24 EPS estimates have gone up 6% in the last 90 days.
Q4 Preview & Outlook
Salesforce Q4 earnings are expected at $1.36 per share, up a stellar 62% from EPS of $0.84 in Q4 2022. On the top line, fourth-quarter sales are expected to be $7.99 billion, a 9% increase from the prior year quarter.
Salesforce is now expected to round out Fiscal 2023 with EPS up 3% and FY24 earnings are expected to jump another 19% to $5.86 a share. Total sales are now forecasted to climb 17% in FY23 and rise another 10% in FY24 to $34.15 billion. More impressive, fiscal 2024 would represent an outstanding 157% growth from pre-pandemic levels with 2019 sales at $13.28 billion.
Performance & Valuation
Salesforce stock is up +23% year to date, despite still being down -23% over the last year to underperform the S&P 500’s -10% and the Nasdaq’s -16%. However, in the last decade since Salesforce went public, CRM is now up +257% to easily top the benchmark and roughly match the Nasdaq.
Last year’s drop may have certainly been a long-term buying opportunity looking at Salesforce’s historical valuation and forecasted bottom-line growth. Trading at $163 per share, CRM trades at 51.1X forward earnings but this is well below its decade-long high of 812.3X and 64% beneath the median of 144.1X with the rising EPS estimates offering further support.
Splunk
Another tech stock that looks intriguing going into its Q4 earnings report on March 1 is Splunk. The software solutions provider also sports a Zacks Rank #2 (Buy) and its Internet-Software Industry is currently in the top 33% of all Zacks Industries.
Earnings estimates revisions have significantly gone up for Splunk’s FY23 and FY24. Impressively, fiscal 2023 earnings estimates have gone up 79% throughout the quarter and FY24 EPS estimates have risen 46%.
This is a great sign that companies are continuing to rely on Splunk for real-time operations intelligence and to harness the value of their data. Splunk allows businesses to investigate, monitor, analyze, and act on machine data, and big data (irrespective of format or source) which assists with operational decision-making.
Q4 Preview & Outlook
The Zacks Consensus for Splunk’s’ Q4 earnings is $1.11 per share, which would be a 68% increase year over year. Sales for the quarter are expected to be $1.07 billion, up 19% YoY.
Rounding out its fiscal year 2023, Splunk earnings are now forecasted to climb to $1.80 a share compared to EPS of -$1.25 in 2022. Plus, fiscal 2024 earnings are expected to leap another 42% at $2.56 per share.
Sales are now projected to jump 30% in FY23 and rise another 15% in FY24 to $3.99 billion. Fiscal 2024 would be a 119% increase from pre-pandemic levels with 2019 sales at $1.80 billion.
Performance & Valuation
Splunk stock has rallied +19% YTD to largely outperform the broader indexes. Over the last year, SPLK’s -13% drop has trailed the S&P 500’s -11% but beat the Nasdaq’s -16%. Furthermore, Splunk is now up +163% over the last decade to trail the Nasdaq but top the benchmark.
Trading at $101 per share, Splunk stock trades at 39.8X forward earnings. While Splunk does not have a traditional P/E history to compare, its forward earnings are below the industry average of 41.6X.
Plus, Splunk’s PEG ratio is getting closer to the optimum level of less than 1 at 1.33 which is also beneath the industry average of 1.78 and shows the company’s growth rate is favorable in conjunction with its valuation. Splunk’s stock currently sports an “A” Style Scores grade for Growth.
Bottom Line
Rounding out their fiscal 2023, Salesforce and Splunk are two tech stocks that investors should consider buying as the rising earnings estimates revisions for fiscal 2024 indicates there could be more upside to their stellar year-to-date performances. In this regard, Both CRM and SPLK stock could soar even more if the companies can provide strong Q4 reports and guidance that reaffirms the rising earnings estimates.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.