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Salesforce.com (CRM) Gains As Market Dips: What You Should Know
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In the latest trading session, Salesforce.com (CRM - Free Report) closed at $158.66, marking a +0.59% move from the previous day. This move outpaced the S&P 500's daily loss of 0.89%. At the same time, the Dow lost 0.63%, and the tech-heavy Nasdaq lost 0.25%.
Heading into today, shares of the customer-management software developer had gained 10.91% over the past month, outpacing the Computer and Technology sector's gain of 10.6% and lagging the S&P 500's gain of 11.42% in that time.
Salesforce.com will be looking to display strength as it nears its next earnings release, which is expected to be November 30, 2022. The company is expected to report EPS of $1.21, down 4.72% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.81 billion, up 13.84% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.73 per share and revenue of $30.93 billion, which would represent changes of -1.05% and +16.76%, respectively, from the prior year.
Any recent changes to analyst estimates for Salesforce.com should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.27% higher within the past month. Salesforce.com is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Salesforce.com currently has a Forward P/E ratio of 33.37. This represents a premium compared to its industry's average Forward P/E of 26.91.
It is also worth noting that CRM currently has a PEG ratio of 1.99. 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 2.17 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 124, putting it in the top 50% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Salesforce.com (CRM) Gains As Market Dips: What You Should Know
In the latest trading session, Salesforce.com (CRM - Free Report) closed at $158.66, marking a +0.59% move from the previous day. This move outpaced the S&P 500's daily loss of 0.89%. At the same time, the Dow lost 0.63%, and the tech-heavy Nasdaq lost 0.25%.
Heading into today, shares of the customer-management software developer had gained 10.91% over the past month, outpacing the Computer and Technology sector's gain of 10.6% and lagging the S&P 500's gain of 11.42% in that time.
Salesforce.com will be looking to display strength as it nears its next earnings release, which is expected to be November 30, 2022. The company is expected to report EPS of $1.21, down 4.72% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.81 billion, up 13.84% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.73 per share and revenue of $30.93 billion, which would represent changes of -1.05% and +16.76%, respectively, from the prior year.
Any recent changes to analyst estimates for Salesforce.com should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.27% higher within the past month. Salesforce.com is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Salesforce.com currently has a Forward P/E ratio of 33.37. This represents a premium compared to its industry's average Forward P/E of 26.91.
It is also worth noting that CRM currently has a PEG ratio of 1.99. 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 2.17 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 124, putting it in the top 50% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.