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Salesforce.com (CRM) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Salesforce.com (CRM - Free Report) closed at $158.90, marking a +1.68% move from the previous day. This move outpaced the S&P 500's daily gain of 0.23%. Meanwhile, the Dow gained 0.85%, and the Nasdaq, a tech-heavy index, lost 0.08%.
Coming into today, shares of the customer-management software developer had gained 3.3% in the past month. In that same time, the Computer and Technology sector gained 5.16%, while the S&P 500 gained 3.84%.
Wall Street will be looking for positivity from CRM as it approaches its next earnings report date. In that report, analysts expect CRM to post earnings of $0.47 per share. This would mark a year-over-year decline of 33.8%. Meanwhile, our latest consensus estimate is calling for revenue of $3.95 billion, up 20.37% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.65 per share and revenue of $16.56 billion, which would represent changes of -3.64% and +24.66%, respectively, from the prior 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 9.07% higher. CRM currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that CRM has a Forward P/E ratio of 59.06 right now. Its industry sports an average Forward P/E of 29.79, so we one might conclude that CRM is trading at a premium comparatively.
It is also worth noting that CRM currently has a PEG ratio of 2.72. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Computer - Software stocks are, on average, holding a PEG ratio of 2.15 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 110, which puts it in the top 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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
In the latest trading session, Salesforce.com (CRM - Free Report) closed at $158.90, marking a +1.68% move from the previous day. This move outpaced the S&P 500's daily gain of 0.23%. Meanwhile, the Dow gained 0.85%, and the Nasdaq, a tech-heavy index, lost 0.08%.
Coming into today, shares of the customer-management software developer had gained 3.3% in the past month. In that same time, the Computer and Technology sector gained 5.16%, while the S&P 500 gained 3.84%.
Wall Street will be looking for positivity from CRM as it approaches its next earnings report date. In that report, analysts expect CRM to post earnings of $0.47 per share. This would mark a year-over-year decline of 33.8%. Meanwhile, our latest consensus estimate is calling for revenue of $3.95 billion, up 20.37% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.65 per share and revenue of $16.56 billion, which would represent changes of -3.64% and +24.66%, respectively, from the prior 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 9.07% higher. CRM currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that CRM has a Forward P/E ratio of 59.06 right now. Its industry sports an average Forward P/E of 29.79, so we one might conclude that CRM is trading at a premium comparatively.
It is also worth noting that CRM currently has a PEG ratio of 2.72. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Computer - Software stocks are, on average, holding a PEG ratio of 2.15 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 110, which puts it in the top 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.