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Salesforce.com (CRM) Gains As Market Dips: What You Should Know
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Salesforce.com (CRM - Free Report) closed at $213.82 in the latest trading session, marking a +1.03% move from the prior day. This move outpaced the S&P 500's daily loss of 0.2%. Elsewhere, the Dow lost 0.38%, while the tech-heavy Nasdaq lost 9.78%.
Prior to today's trading, shares of the customer-management software developer had lost 0.56% over the past month. This has lagged the Computer and Technology sector's gain of 4.63% and the S&P 500's gain of 4.16% in that time.
Wall Street will be looking for positivity from Salesforce.com as it approaches its next earnings report date. The company is expected to report EPS of $1.90, up 59.66% from the prior-year quarter. 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.
It is also important to note the recent changes to analyst estimates for Salesforce.com. These recent revisions tend to reflect the evolving nature of short-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.03% higher. Salesforce.com is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that Salesforce.com has a Forward P/E ratio of 28.46 right now. For comparison, its industry has an average Forward P/E of 27.49, which means Salesforce.com is trading at a premium to the group.
Meanwhile, CRM's PEG ratio is currently 1.48. 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 2.34 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 104, which puts it in the top 42% 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.
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
Salesforce.com (CRM - Free Report) closed at $213.82 in the latest trading session, marking a +1.03% move from the prior day. This move outpaced the S&P 500's daily loss of 0.2%. Elsewhere, the Dow lost 0.38%, while the tech-heavy Nasdaq lost 9.78%.
Prior to today's trading, shares of the customer-management software developer had lost 0.56% over the past month. This has lagged the Computer and Technology sector's gain of 4.63% and the S&P 500's gain of 4.16% in that time.
Wall Street will be looking for positivity from Salesforce.com as it approaches its next earnings report date. The company is expected to report EPS of $1.90, up 59.66% from the prior-year quarter. 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.
It is also important to note the recent changes to analyst estimates for Salesforce.com. These recent revisions tend to reflect the evolving nature of short-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.03% higher. Salesforce.com is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that Salesforce.com has a Forward P/E ratio of 28.46 right now. For comparison, its industry has an average Forward P/E of 27.49, which means Salesforce.com is trading at a premium to the group.
Meanwhile, CRM's PEG ratio is currently 1.48. 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 2.34 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 104, which puts it in the top 42% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.