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Salesforce.com (CRM) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Salesforce.com (CRM - Free Report) closed at $191.06, marking a +0.62% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.4%. Meanwhile, the Dow gained 0.45%, and the Nasdaq, a tech-heavy index, lost 0.44%.
Prior to today's trading, shares of the customer-management software developer had gained 13.45% over the past month. This has lagged the Computer and Technology sector's gain of 14.05% and outpaced the S&P 500's gain of 12.15% in that time.
Salesforce.com will be looking to display strength as it nears its next earnings release, which is expected to be August 24, 2022. The company is expected to report EPS of $1.02, down 31.08% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.7 billion, up 21.47% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.75 per share and revenue of $31.73 billion, which would represent changes of -0.63% and +19.78%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Salesforce.com. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.15% lower within the past month. Salesforce.com currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Salesforce.com has a Forward P/E ratio of 39.96 right now. This represents a premium compared to its industry's average Forward P/E of 28.78.
Investors should also note that CRM has a PEG ratio of 2.39 right now. 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 industry currently had an average PEG ratio of 2.29 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 149, which puts it in the bottom 41% 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.
To follow CRM in the coming trading sessions, be sure to utilize Zacks.com.
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Salesforce.com (CRM) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Salesforce.com (CRM - Free Report) closed at $191.06, marking a +0.62% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.4%. Meanwhile, the Dow gained 0.45%, and the Nasdaq, a tech-heavy index, lost 0.44%.
Prior to today's trading, shares of the customer-management software developer had gained 13.45% over the past month. This has lagged the Computer and Technology sector's gain of 14.05% and outpaced the S&P 500's gain of 12.15% in that time.
Salesforce.com will be looking to display strength as it nears its next earnings release, which is expected to be August 24, 2022. The company is expected to report EPS of $1.02, down 31.08% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.7 billion, up 21.47% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.75 per share and revenue of $31.73 billion, which would represent changes of -0.63% and +19.78%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Salesforce.com. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.15% lower within the past month. Salesforce.com currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Salesforce.com has a Forward P/E ratio of 39.96 right now. This represents a premium compared to its industry's average Forward P/E of 28.78.
Investors should also note that CRM has a PEG ratio of 2.39 right now. 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 industry currently had an average PEG ratio of 2.29 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 149, which puts it in the bottom 41% 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.
To follow CRM in the coming trading sessions, be sure to utilize Zacks.com.