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Salesforce.com (CRM) Stock Sinks As Market Gains: What You Should Know
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Salesforce.com (CRM - Free Report) closed at $238.42 in the latest trading session, marking a -0.25% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 1.04%. Meanwhile, the Dow experienced a rise of 0.76%, and the technology-dominated Nasdaq saw an increase of 1.03%.
Heading into today, shares of the customer-management software developer had lost 7.13% over the past month, outpacing the Computer and Technology sector's loss of 13.91% and lagging the S&P 500's loss of 6.74% in that time.
The upcoming earnings release of Salesforce.com will be of great interest to investors. The company is predicted to post an EPS of $2.36, indicating a 11.32% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $9.23 billion, indicating a 7.3% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.90 per share and a revenue of $37.83 billion, indicating changes of +20.44% and +8.54%, respectively, from the former 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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Salesforce.com boasts a Zacks Rank of #4 (Sell).
Looking at valuation, Salesforce.com is presently trading at a Forward P/E ratio of 24.14. This valuation marks a discount compared to its industry's average Forward P/E of 28.05.
We can also see that CRM currently has a PEG ratio of 1.58. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 2.2.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 109, finds itself in the top 44% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Salesforce.com (CRM) Stock Sinks As Market Gains: What You Should Know
Salesforce.com (CRM - Free Report) closed at $238.42 in the latest trading session, marking a -0.25% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 1.04%. Meanwhile, the Dow experienced a rise of 0.76%, and the technology-dominated Nasdaq saw an increase of 1.03%.
Heading into today, shares of the customer-management software developer had lost 7.13% over the past month, outpacing the Computer and Technology sector's loss of 13.91% and lagging the S&P 500's loss of 6.74% in that time.
The upcoming earnings release of Salesforce.com will be of great interest to investors. The company is predicted to post an EPS of $2.36, indicating a 11.32% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $9.23 billion, indicating a 7.3% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.90 per share and a revenue of $37.83 billion, indicating changes of +20.44% and +8.54%, respectively, from the former 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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Salesforce.com boasts a Zacks Rank of #4 (Sell).
Looking at valuation, Salesforce.com is presently trading at a Forward P/E ratio of 24.14. This valuation marks a discount compared to its industry's average Forward P/E of 28.05.
We can also see that CRM currently has a PEG ratio of 1.58. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 2.2.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 109, finds itself in the top 44% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.