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Salesforce.com (CRM) Stock Drops Despite Market Gains: Important Facts to Note
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The most recent trading session ended with Salesforce.com (CRM - Free Report) standing at $258.59, reflecting a -1.57% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 0.08%. Elsewhere, the Dow saw a downswing of 0.12%, while the tech-heavy Nasdaq appreciated by 0.07%.
The customer-management software developer's stock has climbed by 2.18% in the past month, exceeding the Computer and Technology sector's loss of 4.62% and the S&P 500's loss of 0.21%.
The investment community will be closely monitoring the performance of Salesforce.com in its forthcoming earnings report. It is anticipated that the company will report an EPS of $2.36, marking a 11.32% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.23 billion, up 7.3% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.90 per share and a revenue of $37.83 billion, representing changes of +20.44% and +8.54%, respectively, from the prior year.
Investors should also note any 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Salesforce.com is currently a Zacks Rank #3 (Hold).
Digging into valuation, Salesforce.com currently has a Forward P/E ratio of 26.53. This denotes a discount relative to the industry's average Forward P/E of 29.87.
Also, we should mention that CRM has a PEG ratio of 1.74. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 2.41.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 158, finds itself in the bottom 38% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Salesforce.com (CRM) Stock Drops Despite Market Gains: Important Facts to Note
The most recent trading session ended with Salesforce.com (CRM - Free Report) standing at $258.59, reflecting a -1.57% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 0.08%. Elsewhere, the Dow saw a downswing of 0.12%, while the tech-heavy Nasdaq appreciated by 0.07%.
The customer-management software developer's stock has climbed by 2.18% in the past month, exceeding the Computer and Technology sector's loss of 4.62% and the S&P 500's loss of 0.21%.
The investment community will be closely monitoring the performance of Salesforce.com in its forthcoming earnings report. It is anticipated that the company will report an EPS of $2.36, marking a 11.32% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.23 billion, up 7.3% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.90 per share and a revenue of $37.83 billion, representing changes of +20.44% and +8.54%, respectively, from the prior year.
Investors should also note any 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Salesforce.com is currently a Zacks Rank #3 (Hold).
Digging into valuation, Salesforce.com currently has a Forward P/E ratio of 26.53. This denotes a discount relative to the industry's average Forward P/E of 29.87.
Also, we should mention that CRM has a PEG ratio of 1.74. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 2.41.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 158, finds itself in the bottom 38% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.