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Salesforce.com (CRM) Gains But Lags Market: What You Should Know
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Salesforce.com (CRM - Free Report) closed at $221.52 in the latest trading session, marking a +0.55% move from the prior day. This change lagged the S&P 500's 0.71% gain on the day. Elsewhere, the Dow gained 0.56%, while the tech-heavy Nasdaq added 0.95%.
Prior to today's trading, shares of the customer-management software developer had lost 3.25% over the past month. This has lagged the Computer and Technology sector's gain of 0.85% and the S&P 500's gain of 0.17% in that time.
Wall Street will be looking for positivity from CRM as it approaches its next earnings report date. The company is expected to report EPS of $0.75, up 13.64% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.68 billion, up 17.02% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.63 per share and revenue of $21.11 billion. These totals would mark changes of +54.85% and +23.47%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for CRM. These revisions help to show the ever-changing nature of 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. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. CRM is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, CRM currently has a Forward P/E ratio of 47.56. This valuation marks a premium compared to its industry's average Forward P/E of 33.23.
Also, we should mention that CRM has a PEG ratio of 3.4. 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. CRM's industry had an average PEG ratio of 2.8 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 167, which puts it in the bottom 35% 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.
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
Salesforce.com (CRM - Free Report) closed at $221.52 in the latest trading session, marking a +0.55% move from the prior day. This change lagged the S&P 500's 0.71% gain on the day. Elsewhere, the Dow gained 0.56%, while the tech-heavy Nasdaq added 0.95%.
Prior to today's trading, shares of the customer-management software developer had lost 3.25% over the past month. This has lagged the Computer and Technology sector's gain of 0.85% and the S&P 500's gain of 0.17% in that time.
Wall Street will be looking for positivity from CRM as it approaches its next earnings report date. The company is expected to report EPS of $0.75, up 13.64% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.68 billion, up 17.02% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.63 per share and revenue of $21.11 billion. These totals would mark changes of +54.85% and +23.47%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for CRM. These revisions help to show the ever-changing nature of 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. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. CRM is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, CRM currently has a Forward P/E ratio of 47.56. This valuation marks a premium compared to its industry's average Forward P/E of 33.23.
Also, we should mention that CRM has a PEG ratio of 3.4. 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. CRM's industry had an average PEG ratio of 2.8 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 167, which puts it in the bottom 35% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.