We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Salesforce.com (CRM) Dips More Than Broader Markets: What You Should Know
Read MoreHide Full Article
Salesforce.com (CRM - Free Report) closed at $254.13 in the latest trading session, marking a -0.47% move from the prior day. This move lagged the S&P 500's daily loss of 0.26%. Meanwhile, the Dow lost 0.16%, and the Nasdaq, a tech-heavy index, lost 0.04%.
Coming into today, shares of the customer-management software developer had lost 2.25% in the past month. In that same time, the Computer and Technology sector gained 2.19%, while the S&P 500 gained 4.82%.
Salesforce.com will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.73, down 29.81% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.23 billion, up 24.28% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.68 per share and revenue of $26.4 billion, which would represent changes of -4.88% and +24.2%, respectively, from the prior year.
Any recent changes to analyst estimates for Salesforce.com should also be noted by investors. These revisions help to show the ever-changing nature of 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. 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. Within the past 30 days, our consensus EPS projection has moved 1.69% higher. Salesforce.com currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Salesforce.com is currently trading at a Forward P/E ratio of 54.59. This represents a premium compared to its industry's average Forward P/E of 37.15.
Meanwhile, CRM's PEG ratio is currently 3.26. 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 3.09 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 101, putting it in the top 40% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Salesforce.com (CRM) Dips More Than Broader Markets: What You Should Know
Salesforce.com (CRM - Free Report) closed at $254.13 in the latest trading session, marking a -0.47% move from the prior day. This move lagged the S&P 500's daily loss of 0.26%. Meanwhile, the Dow lost 0.16%, and the Nasdaq, a tech-heavy index, lost 0.04%.
Coming into today, shares of the customer-management software developer had lost 2.25% in the past month. In that same time, the Computer and Technology sector gained 2.19%, while the S&P 500 gained 4.82%.
Salesforce.com will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.73, down 29.81% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.23 billion, up 24.28% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.68 per share and revenue of $26.4 billion, which would represent changes of -4.88% and +24.2%, respectively, from the prior year.
Any recent changes to analyst estimates for Salesforce.com should also be noted by investors. These revisions help to show the ever-changing nature of 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. 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. Within the past 30 days, our consensus EPS projection has moved 1.69% higher. Salesforce.com currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Salesforce.com is currently trading at a Forward P/E ratio of 54.59. This represents a premium compared to its industry's average Forward P/E of 37.15.
Meanwhile, CRM's PEG ratio is currently 3.26. 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 3.09 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 101, putting it in the top 40% 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.