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Salesforce.com (CRM) Stock Moves -0.58%: What You Should Know

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The latest trading session saw Salesforce.com (CRM - Free Report) ending at $251.12, denoting a -0.58% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily loss of 0.88%. Elsewhere, the Dow saw an upswing of 0.08%, while the tech-heavy Nasdaq depreciated by 1.95%.

Shares of the customer-management software developer have appreciated by 7.12% over the course of the past month, underperforming the Computer and Technology sector's gain of 9.48% and outperforming the S&P 500's gain of 5.11%.

Market participants will be closely following the financial results of Salesforce.com in its upcoming release. The company is predicted to post an EPS of $2.36, indicating a 11.32% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $9.23 billion, reflecting a 7.3% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $9.90 per share and a revenue of $37.83 billion, demonstrating changes of +20.44% and +8.54%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for Salesforce.com. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.02% decrease. Salesforce.com presently features a Zacks Rank of #3 (Hold).

From a valuation perspective, Salesforce.com is currently exchanging hands at a Forward P/E ratio of 25.51. For comparison, its industry has an average Forward P/E of 30.46, which means Salesforce.com is trading at a discount to the group.

We can also see that CRM currently has a PEG ratio of 1.67. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computer - Software was holding an average PEG ratio of 2.46 at yesterday's closing price.

The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 154, which puts it in the bottom 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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