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Salesforce.com (CRM) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Salesforce.com (CRM - Free Report) closed at $148.47, marking a -0.7% move from the previous day. This change lagged the S&P 500's 0.2% loss on the day. Elsewhere, the Dow lost 1.14%, while the tech-heavy Nasdaq added 1.39%.
Prior to today's trading, shares of the customer-management software developer had gained 15.89% over the past month. This has outpaced the Computer and Technology sector's gain of 3.75% and the S&P 500's gain of 4.01% in that time.
Investors will be hoping for strength from Salesforce.com as it approaches its next earnings release. In that report, analysts expect Salesforce.com to post earnings of $1.36 per share. This would mark year-over-year growth of 61.9%. Our most recent consensus estimate is calling for quarterly revenue of $7.99 billion, up 9% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.93 per share and revenue of $30.92 billion, which would represent changes of +3.14% and +16.73%, 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.
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.
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. The Zacks Consensus EPS estimate has moved 0.1% higher within the past month. Salesforce.com is currently a Zacks Rank #2 (Buy).
In terms of valuation, Salesforce.com is currently trading at a Forward P/E ratio of 30.34. This valuation marks a premium compared to its industry's average Forward P/E of 26.98.
It is also worth noting that CRM currently has a PEG ratio of 1.81. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. CRM's industry had an average PEG ratio of 2 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 76, putting it in the top 31% 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) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Salesforce.com (CRM - Free Report) closed at $148.47, marking a -0.7% move from the previous day. This change lagged the S&P 500's 0.2% loss on the day. Elsewhere, the Dow lost 1.14%, while the tech-heavy Nasdaq added 1.39%.
Prior to today's trading, shares of the customer-management software developer had gained 15.89% over the past month. This has outpaced the Computer and Technology sector's gain of 3.75% and the S&P 500's gain of 4.01% in that time.
Investors will be hoping for strength from Salesforce.com as it approaches its next earnings release. In that report, analysts expect Salesforce.com to post earnings of $1.36 per share. This would mark year-over-year growth of 61.9%. Our most recent consensus estimate is calling for quarterly revenue of $7.99 billion, up 9% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.93 per share and revenue of $30.92 billion, which would represent changes of +3.14% and +16.73%, 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.
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.
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. The Zacks Consensus EPS estimate has moved 0.1% higher within the past month. Salesforce.com is currently a Zacks Rank #2 (Buy).
In terms of valuation, Salesforce.com is currently trading at a Forward P/E ratio of 30.34. This valuation marks a premium compared to its industry's average Forward P/E of 26.98.
It is also worth noting that CRM currently has a PEG ratio of 1.81. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. CRM's industry had an average PEG ratio of 2 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 76, putting it in the top 31% 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.