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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 $148.54 in the latest trading session, marking a -0.44% move from the prior day. This move lagged the S&P 500's daily gain of 0.22%. Elsewhere, the Dow gained 0.59%, while the tech-heavy Nasdaq added 0.16%.
Heading into today, shares of the customer-management software developer had gained 12.75% over the past month, outpacing the Computer and Technology sector's loss of 0.37% and the S&P 500's gain of 0.49% 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. The company is expected to report EPS of $0.56, up 60% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.56 billion, up 24.92% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.61 per share and revenue of $13.24 billion, which would represent changes of +93.33% and +26.3%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for CRM. These recent revisions tend to reflect the evolving nature of short-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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. CRM currently has a Zacks Rank of #2 (Buy).
In terms of valuation, CRM is currently trading at a Forward P/E ratio of 57.14. This represents a premium compared to its industry's average Forward P/E of 27.03.
We can also see that CRM currently has a PEG ratio of 2.36. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Software was holding an average PEG ratio of 1.94 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 62, putting it in the top 25% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Salesforce.com (CRM) Stock Sinks As Market Gains: What You Should Know
Salesforce.com (CRM - Free Report) closed at $148.54 in the latest trading session, marking a -0.44% move from the prior day. This move lagged the S&P 500's daily gain of 0.22%. Elsewhere, the Dow gained 0.59%, while the tech-heavy Nasdaq added 0.16%.
Heading into today, shares of the customer-management software developer had gained 12.75% over the past month, outpacing the Computer and Technology sector's loss of 0.37% and the S&P 500's gain of 0.49% 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. The company is expected to report EPS of $0.56, up 60% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.56 billion, up 24.92% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.61 per share and revenue of $13.24 billion, which would represent changes of +93.33% and +26.3%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for CRM. These recent revisions tend to reflect the evolving nature of short-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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. CRM currently has a Zacks Rank of #2 (Buy).
In terms of valuation, CRM is currently trading at a Forward P/E ratio of 57.14. This represents a premium compared to its industry's average Forward P/E of 27.03.
We can also see that CRM currently has a PEG ratio of 2.36. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Software was holding an average PEG ratio of 1.94 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 62, putting it in the top 25% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.