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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 $208.09 in the latest trading session, marking a +1.86% move from the prior day. This move lagged the S&P 500's daily gain of 2.24%. Elsewhere, the Dow gained 2.51%, while the tech-heavy Nasdaq lost 0.2%.
Prior to today's trading, shares of the customer-management software developer had lost 3.97% over the past month. This has lagged the Computer and Technology sector's loss of 3.39% and the S&P 500's loss of 2.58% in that time.
Wall Street will be looking for positivity from Salesforce.com as it approaches its next earnings report date. This is expected to be March 1, 2022. On that day, Salesforce.com is projected to report earnings of $0.73 per share, which would represent a year-over-year decline of 29.81%. Meanwhile, our latest consensus estimate is calling for revenue of $7.23 billion, up 24.28% from the prior-year quarter.
Any recent changes to analyst estimates for Salesforce.com should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant. Salesforce.com currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Salesforce.com is currently trading at a Forward P/E ratio of 43.66. Its industry sports an average Forward P/E of 31.47, so we one might conclude that Salesforce.com is trading at a premium comparatively.
We can also see that CRM currently has a PEG ratio of 2.61. 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. The Computer - Software was holding an average PEG ratio of 2.6 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 162, putting it in the bottom 37% 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.
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 $208.09 in the latest trading session, marking a +1.86% move from the prior day. This move lagged the S&P 500's daily gain of 2.24%. Elsewhere, the Dow gained 2.51%, while the tech-heavy Nasdaq lost 0.2%.
Prior to today's trading, shares of the customer-management software developer had lost 3.97% over the past month. This has lagged the Computer and Technology sector's loss of 3.39% and the S&P 500's loss of 2.58% in that time.
Wall Street will be looking for positivity from Salesforce.com as it approaches its next earnings report date. This is expected to be March 1, 2022. On that day, Salesforce.com is projected to report earnings of $0.73 per share, which would represent a year-over-year decline of 29.81%. Meanwhile, our latest consensus estimate is calling for revenue of $7.23 billion, up 24.28% from the prior-year quarter.
Any recent changes to analyst estimates for Salesforce.com should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant. Salesforce.com currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Salesforce.com is currently trading at a Forward P/E ratio of 43.66. Its industry sports an average Forward P/E of 31.47, so we one might conclude that Salesforce.com is trading at a premium comparatively.
We can also see that CRM currently has a PEG ratio of 2.61. 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. The Computer - Software was holding an average PEG ratio of 2.6 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 162, putting it in the bottom 37% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.