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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 $144.15, marking a +0.97% move from the previous day. This move lagged the S&P 500's daily gain of 1.09%. Meanwhile, the Dow gained 1.13%, and the Nasdaq, a tech-heavy index, added 1.51%.
Heading into today, shares of the customer-management software developer had gained 2.27% over the past month, outpacing the Computer and Technology sector's loss of 0.28% and the S&P 500's gain of 1.92% 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 February 27, 2019. On that day, CRM is projected to report earnings of $0.56 per share, which would represent year-over-year growth of 60%. Our most recent consensus estimate is calling for quarterly revenue of $3.56 billion, up 24.76% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.61 per share and revenue of $13.23 billion. These totals would mark changes of +93.33% and +26.23%, respectively, from last year.
Any recent changes to analyst estimates for CRM should also be noted by investors. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 8.29% higher within the past month. CRM is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that CRM has a Forward P/E ratio of 54.67 right now. For comparison, its industry has an average Forward P/E of 31.06, which means CRM is trading at a premium to the group.
It is also worth noting that CRM currently has a PEG ratio of 2.19. 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 industry currently had an average PEG ratio of 2.17 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 36% 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.
To follow CRM in the coming trading sessions, be sure to utilize Zacks.com.
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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 $144.15, marking a +0.97% move from the previous day. This move lagged the S&P 500's daily gain of 1.09%. Meanwhile, the Dow gained 1.13%, and the Nasdaq, a tech-heavy index, added 1.51%.
Heading into today, shares of the customer-management software developer had gained 2.27% over the past month, outpacing the Computer and Technology sector's loss of 0.28% and the S&P 500's gain of 1.92% 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 February 27, 2019. On that day, CRM is projected to report earnings of $0.56 per share, which would represent year-over-year growth of 60%. Our most recent consensus estimate is calling for quarterly revenue of $3.56 billion, up 24.76% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.61 per share and revenue of $13.23 billion. These totals would mark changes of +93.33% and +26.23%, respectively, from last year.
Any recent changes to analyst estimates for CRM should also be noted by investors. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 8.29% higher within the past month. CRM is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that CRM has a Forward P/E ratio of 54.67 right now. For comparison, its industry has an average Forward P/E of 31.06, which means CRM is trading at a premium to the group.
It is also worth noting that CRM currently has a PEG ratio of 2.19. 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 industry currently had an average PEG ratio of 2.17 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 36% 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.
To follow CRM in the coming trading sessions, be sure to utilize Zacks.com.