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Salesforce.com (CRM) Gains But Lags Market: What You Should Know
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In the latest trading session, Salesforce.com (CRM - Free Report) closed at $260.84, marking a +1.24% move from the previous day. This change lagged the S&P 500's 1.62% gain on the day. At the same time, the Dow added 1.54%, and the tech-heavy Nasdaq gained 1.31%.
Prior to today's trading, shares of the customer-management software developer had gained 6.47% over the past month. This has outpaced the Computer and Technology sector's gain of 2.55% and the S&P 500's gain of 3.4% in that time.
Wall Street will be looking for positivity from CRM as it approaches its next earnings report date. This is expected to be December 1, 2020. The company is expected to report EPS of $0.74, down 1.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.25 billion, up 16.25% from the prior-year quarter.
CRM's full-year Zacks Consensus Estimates are calling for earnings of $3.73 per share and revenue of $20.77 billion. These results would represent year-over-year changes of +24.75% and +21.49%, respectively.
Investors should also note any recent changes to analyst estimates for CRM. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.56% lower. CRM currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, CRM is holding a Forward P/E ratio of 69.01. For comparison, its industry has an average Forward P/E of 31.31, which means CRM is trading at a premium to the group.
Investors should also note that CRM has a PEG ratio of 4.4 right now. 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. The Computer - Software was holding an average PEG ratio of 2.44 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 169, putting it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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) Gains But Lags Market: What You Should Know
In the latest trading session, Salesforce.com (CRM - Free Report) closed at $260.84, marking a +1.24% move from the previous day. This change lagged the S&P 500's 1.62% gain on the day. At the same time, the Dow added 1.54%, and the tech-heavy Nasdaq gained 1.31%.
Prior to today's trading, shares of the customer-management software developer had gained 6.47% over the past month. This has outpaced the Computer and Technology sector's gain of 2.55% and the S&P 500's gain of 3.4% in that time.
Wall Street will be looking for positivity from CRM as it approaches its next earnings report date. This is expected to be December 1, 2020. The company is expected to report EPS of $0.74, down 1.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.25 billion, up 16.25% from the prior-year quarter.
CRM's full-year Zacks Consensus Estimates are calling for earnings of $3.73 per share and revenue of $20.77 billion. These results would represent year-over-year changes of +24.75% and +21.49%, respectively.
Investors should also note any recent changes to analyst estimates for CRM. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.56% lower. CRM currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, CRM is holding a Forward P/E ratio of 69.01. For comparison, its industry has an average Forward P/E of 31.31, which means CRM is trading at a premium to the group.
Investors should also note that CRM has a PEG ratio of 4.4 right now. 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. The Computer - Software was holding an average PEG ratio of 2.44 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 169, putting it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.