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Salesforce.com (CRM) Outpaces Stock Market Gains: What You Should Know
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Salesforce.com (CRM - Free Report) closed at $197.08 in the latest trading session, marking a +1.25% move from the prior day. This move outpaced the S&P 500's daily gain of 0.33%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 1.92%.
Prior to today's trading, shares of the customer-management software developer had gained 5.3% over the past month. This has lagged the Computer and Technology sector's gain of 7.45% and the S&P 500's gain of 5.67% in that time.
Salesforce.com will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.61, up 64.29% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.17 billion, up 10.24% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.11 per share and revenue of $34.62 billion, which would represent changes of +35.69% and +10.43%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Salesforce.com. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Salesforce.com is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that Salesforce.com has a Forward P/E ratio of 27.38 right now. For comparison, its industry has an average Forward P/E of 27.22, which means Salesforce.com is trading at a premium to the group.
It is also worth noting that CRM currently has a PEG ratio of 1.63. 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. CRM's industry had an average PEG ratio of 2.16 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 73, which puts it in the top 29% 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) Outpaces Stock Market Gains: What You Should Know
Salesforce.com (CRM - Free Report) closed at $197.08 in the latest trading session, marking a +1.25% move from the prior day. This move outpaced the S&P 500's daily gain of 0.33%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 1.92%.
Prior to today's trading, shares of the customer-management software developer had gained 5.3% over the past month. This has lagged the Computer and Technology sector's gain of 7.45% and the S&P 500's gain of 5.67% in that time.
Salesforce.com will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.61, up 64.29% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.17 billion, up 10.24% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.11 per share and revenue of $34.62 billion, which would represent changes of +35.69% and +10.43%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Salesforce.com. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Salesforce.com is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that Salesforce.com has a Forward P/E ratio of 27.38 right now. For comparison, its industry has an average Forward P/E of 27.22, which means Salesforce.com is trading at a premium to the group.
It is also worth noting that CRM currently has a PEG ratio of 1.63. 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. CRM's industry had an average PEG ratio of 2.16 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 73, which puts it in the top 29% 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.