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Salesforce.com (CRM) Stock Sinks As Market Gains: What You Should Know
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Salesforce.com (CRM - Free Report) closed the most recent trading day at $210.43, moving -0.82% from the previous trading session. This change lagged the S&P 500's 0.45% gain on the day. Meanwhile, the Dow gained 0.8%, and the Nasdaq, a tech-heavy index, added 1.99%.
Heading into today, shares of the customer-management software developer had lost 5.02% over the past month, lagging the Computer and Technology sector's gain of 3.21% and the S&P 500's gain of 4.25% in that time.
Wall Street will be looking for positivity from Salesforce.com as it approaches its next earnings report date. On that day, Salesforce.com is projected to report earnings of $1.90 per share, which would represent year-over-year growth of 59.66%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.52 billion, up 10.41% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.44 per share and revenue of $34.63 billion, which would represent changes of +41.98% and +10.46%, 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. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 7.78% higher. Salesforce.com is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note Salesforce.com's current valuation metrics, including its Forward P/E ratio of 28.53. This represents a premium compared to its industry's average Forward P/E of 27.4.
Also, we should mention that CRM has a PEG ratio of 1.48. 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 2.32 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 88, putting it in the top 35% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Salesforce.com (CRM) Stock Sinks As Market Gains: What You Should Know
Salesforce.com (CRM - Free Report) closed the most recent trading day at $210.43, moving -0.82% from the previous trading session. This change lagged the S&P 500's 0.45% gain on the day. Meanwhile, the Dow gained 0.8%, and the Nasdaq, a tech-heavy index, added 1.99%.
Heading into today, shares of the customer-management software developer had lost 5.02% over the past month, lagging the Computer and Technology sector's gain of 3.21% and the S&P 500's gain of 4.25% in that time.
Wall Street will be looking for positivity from Salesforce.com as it approaches its next earnings report date. On that day, Salesforce.com is projected to report earnings of $1.90 per share, which would represent year-over-year growth of 59.66%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.52 billion, up 10.41% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.44 per share and revenue of $34.63 billion, which would represent changes of +41.98% and +10.46%, 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. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 7.78% higher. Salesforce.com is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note Salesforce.com's current valuation metrics, including its Forward P/E ratio of 28.53. This represents a premium compared to its industry's average Forward P/E of 27.4.
Also, we should mention that CRM has a PEG ratio of 1.48. 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 2.32 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 88, putting it in the top 35% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.