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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 the most recent trading day at $292.34, moving +0.22% from the previous trading session. This change lagged the S&P 500's 0.74% gain on the day.
Heading into today, shares of the customer-management software developer had gained 12.97% over the past month, outpacing the Computer and Technology sector's loss of 0.81% and the S&P 500's gain of 1.34% in that time.
CRM will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.92, down 47.13% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.79 billion, up 25.27% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.40 per share and revenue of $26.3 billion, which would represent changes of -10.57% and +23.73%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 2.82% higher. CRM currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that CRM has a Forward P/E ratio of 66.35 right now. Its industry sports an average Forward P/E of 35.44, so we one might conclude that CRM is trading at a premium comparatively.
Meanwhile, CRM's PEG ratio is currently 3.96. 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. Computer - Software stocks are, on average, holding a PEG ratio of 3.02 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 151, putting it in the bottom 41% 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.
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
Salesforce.com (CRM - Free Report) closed the most recent trading day at $292.34, moving +0.22% from the previous trading session. This change lagged the S&P 500's 0.74% gain on the day.
Heading into today, shares of the customer-management software developer had gained 12.97% over the past month, outpacing the Computer and Technology sector's loss of 0.81% and the S&P 500's gain of 1.34% in that time.
CRM will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.92, down 47.13% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.79 billion, up 25.27% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.40 per share and revenue of $26.3 billion, which would represent changes of -10.57% and +23.73%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 2.82% higher. CRM currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that CRM has a Forward P/E ratio of 66.35 right now. Its industry sports an average Forward P/E of 35.44, so we one might conclude that CRM is trading at a premium comparatively.
Meanwhile, CRM's PEG ratio is currently 3.96. 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. Computer - Software stocks are, on average, holding a PEG ratio of 3.02 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 151, putting it in the bottom 41% 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.
To follow CRM in the coming trading sessions, be sure to utilize Zacks.com.