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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 $208.25 in the latest trading session, marking a +1.16% move from the prior day. This move outpaced the S&P 500's daily gain of 0.03%. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq added 0.12%.
Prior to today's trading, shares of the customer-management software developer had lost 9.42% over the past month. This has lagged the Computer and Technology sector's gain of 0.11% and the S&P 500's gain of 1.66% in that time.
Salesforce.com will be looking to display strength as it nears its next earnings release, which is expected to be August 30, 2023. On that day, Salesforce.com is projected to report earnings of $1.90 per share, which would represent year-over-year growth of 59.66%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.52 billion, up 10.41% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.44 per share and revenue of $34.64 billion. These totals would mark changes of +41.98% and +10.5%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Salesforce.com. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. The Zacks Consensus EPS estimate has moved 0.11% higher within the past month. Salesforce.com is currently a Zacks Rank #2 (Buy).
Digging into valuation, Salesforce.com currently has a Forward P/E ratio of 27.67. Its industry sports an average Forward P/E of 28.31, so we one might conclude that Salesforce.com is trading at a discount comparatively.
It is also worth noting that CRM currently has a PEG ratio of 1.44. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Computer - Software stocks are, on average, holding a PEG ratio of 2.39 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 81, which puts it in the top 33% 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 $208.25 in the latest trading session, marking a +1.16% move from the prior day. This move outpaced the S&P 500's daily gain of 0.03%. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq added 0.12%.
Prior to today's trading, shares of the customer-management software developer had lost 9.42% over the past month. This has lagged the Computer and Technology sector's gain of 0.11% and the S&P 500's gain of 1.66% in that time.
Salesforce.com will be looking to display strength as it nears its next earnings release, which is expected to be August 30, 2023. On that day, Salesforce.com is projected to report earnings of $1.90 per share, which would represent year-over-year growth of 59.66%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.52 billion, up 10.41% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.44 per share and revenue of $34.64 billion. These totals would mark changes of +41.98% and +10.5%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Salesforce.com. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. The Zacks Consensus EPS estimate has moved 0.11% higher within the past month. Salesforce.com is currently a Zacks Rank #2 (Buy).
Digging into valuation, Salesforce.com currently has a Forward P/E ratio of 27.67. Its industry sports an average Forward P/E of 28.31, so we one might conclude that Salesforce.com is trading at a discount comparatively.
It is also worth noting that CRM currently has a PEG ratio of 1.44. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Computer - Software stocks are, on average, holding a PEG ratio of 2.39 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 81, which puts it in the top 33% 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.