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Salesforce.com (CRM) Outpaces Stock Market Gains: What You Should Know
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Salesforce.com (CRM - Free Report) closed at $149.73 in the latest trading session, marking a +0.52% move from the prior day. This move outpaced the S&P 500's daily gain of 0.22%. At the same time, the Dow added 0.7%, and the tech-heavy Nasdaq gained 0.08%.
Coming into today, shares of the customer-management software developer had gained 22.76% in the past month. In that same time, the Computer and Technology sector gained 7.59%, while the S&P 500 gained 9.27%.
Investors will be hoping for strength from CRM as it approaches its next earnings release, which 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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.56 billion, up 24.92% 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 $13.24 billion. These totals would mark changes of +93.33% and +26.3%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for CRM. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. CRM is currently a Zacks Rank #2 (Buy).
Digging into valuation, CRM currently has a Forward P/E ratio of 57.04. For comparison, its industry has an average Forward P/E of 26.81, which means CRM is trading at a premium to the group.
Investors should also note that CRM has a PEG ratio of 2.36 right now. 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. Computer - Software stocks are, on average, holding a PEG ratio of 1.96 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 56, putting it in the top 22% 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) Outpaces Stock Market Gains: What You Should Know
Salesforce.com (CRM - Free Report) closed at $149.73 in the latest trading session, marking a +0.52% move from the prior day. This move outpaced the S&P 500's daily gain of 0.22%. At the same time, the Dow added 0.7%, and the tech-heavy Nasdaq gained 0.08%.
Coming into today, shares of the customer-management software developer had gained 22.76% in the past month. In that same time, the Computer and Technology sector gained 7.59%, while the S&P 500 gained 9.27%.
Investors will be hoping for strength from CRM as it approaches its next earnings release, which 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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.56 billion, up 24.92% 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 $13.24 billion. These totals would mark changes of +93.33% and +26.3%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for CRM. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. CRM is currently a Zacks Rank #2 (Buy).
Digging into valuation, CRM currently has a Forward P/E ratio of 57.04. For comparison, its industry has an average Forward P/E of 26.81, which means CRM is trading at a premium to the group.
Investors should also note that CRM has a PEG ratio of 2.36 right now. 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. Computer - Software stocks are, on average, holding a PEG ratio of 1.96 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 56, putting it in the top 22% 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.