We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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) Outpaces Stock Market Gains: What You Should Know
Read MoreHide Full Article
In the latest trading session, Salesforce.com (CRM - Free Report) closed at $174.57, marking a +1.83% move from the previous day. This move outpaced the S&P 500's daily gain of 0.57%. Elsewhere, the Dow gained 0.7%, while the tech-heavy Nasdaq lost 0.1%.
Prior to today's trading, shares of the customer-management software developer had lost 18.77% over the past month. This has lagged the Computer and Technology sector's loss of 11.12% and the S&P 500's loss of 5.26% in that time.
Wall Street will be looking for positivity from Salesforce.com as it approaches its next earnings report date. In that report, analysts expect Salesforce.com to post earnings of $0.94 per share. This would mark a year-over-year decline of 22.31%. Meanwhile, our latest consensus estimate is calling for revenue of $7.37 billion, up 23.68% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.65 per share and revenue of $31.63 billion. These totals would mark changes of -2.72% and +19.39%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Salesforce.com. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 remained stagnant. Salesforce.com is currently a Zacks Rank #3 (Hold).
Investors should also note Salesforce.com's current valuation metrics, including its Forward P/E ratio of 36.87. For comparison, its industry has an average Forward P/E of 28.39, which means Salesforce.com is trading at a premium to the group.
Meanwhile, CRM's PEG ratio is currently 2.2. 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 2.37 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 160, which puts it in the bottom 37% 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.
View the Zacks #1 Rank List
Image: Bigstock
Salesforce.com (CRM) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Salesforce.com (CRM - Free Report) closed at $174.57, marking a +1.83% move from the previous day. This move outpaced the S&P 500's daily gain of 0.57%. Elsewhere, the Dow gained 0.7%, while the tech-heavy Nasdaq lost 0.1%.
Prior to today's trading, shares of the customer-management software developer had lost 18.77% over the past month. This has lagged the Computer and Technology sector's loss of 11.12% and the S&P 500's loss of 5.26% in that time.
Wall Street will be looking for positivity from Salesforce.com as it approaches its next earnings report date. In that report, analysts expect Salesforce.com to post earnings of $0.94 per share. This would mark a year-over-year decline of 22.31%. Meanwhile, our latest consensus estimate is calling for revenue of $7.37 billion, up 23.68% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.65 per share and revenue of $31.63 billion. These totals would mark changes of -2.72% and +19.39%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Salesforce.com. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 remained stagnant. Salesforce.com is currently a Zacks Rank #3 (Hold).
Investors should also note Salesforce.com's current valuation metrics, including its Forward P/E ratio of 36.87. For comparison, its industry has an average Forward P/E of 28.39, which means Salesforce.com is trading at a premium to the group.
Meanwhile, CRM's PEG ratio is currently 2.2. 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 2.37 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 160, which puts it in the bottom 37% 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.