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Salesforce.com (CRM) Stock Dips While Market Gains: Key Facts

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Salesforce.com (CRM - Free Report) closed the latest trading day at $247.23, indicating a -1.05% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 0.13%. At the same time, the Dow lost 1.33%, and the tech-heavy Nasdaq lost 0.13%.

Shares of the customer-management software developer witnessed a loss of 10.58% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 9.27% and the S&P 500's loss of 6.3%.

Analysts and investors alike will be keeping a close eye on the performance of Salesforce.com in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.54, signifying a 4.1% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $9.74 billion, up 6.61% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $11.12 per share and a revenue of $40.78 billion, demonstrating changes of +9.02% and +7.61%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Salesforce.com. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.07% lower. As of now, Salesforce.com holds a Zacks Rank of #3 (Hold).

Looking at its valuation, Salesforce.com is holding a Forward P/E ratio of 22.48. This indicates a discount in contrast to its industry's Forward P/E of 23.74.

It's also important to note that CRM currently trades at a PEG ratio of 1.77. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computer - Software industry currently had an average PEG ratio of 2.11 as of yesterday's close.

The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 36% of over 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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