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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 $230.37, marking a +1.36% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.85%. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq gained 5.61%.
Coming into today, shares of the customer-management software developer had gained 8.54% in the past month. In that same time, the Computer and Technology sector gained 1.89%, while the S&P 500 gained 3.18%.
Salesforce.com will be looking to display strength as it nears its next earnings release. 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.
CRM's full-year Zacks Consensus Estimates are calling for earnings of $7.44 per share and revenue of $34.63 billion. These results would represent year-over-year changes of +41.98% and +10.46%, respectively.
Investors should also note any recent changes to analyst estimates for Salesforce.com. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.03% higher. Salesforce.com currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Salesforce.com has a Forward P/E ratio of 30.57 right now. This represents a premium compared to its industry's average Forward P/E of 28.27.
It is also worth noting that CRM currently has a PEG ratio of 1.59. 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. The Computer - Software industry currently had an average PEG ratio of 2.42 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 92, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Salesforce.com (CRM - Free Report) closed at $230.37, marking a +1.36% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.85%. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq gained 5.61%.
Coming into today, shares of the customer-management software developer had gained 8.54% in the past month. In that same time, the Computer and Technology sector gained 1.89%, while the S&P 500 gained 3.18%.
Salesforce.com will be looking to display strength as it nears its next earnings release. 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.
CRM's full-year Zacks Consensus Estimates are calling for earnings of $7.44 per share and revenue of $34.63 billion. These results would represent year-over-year changes of +41.98% and +10.46%, respectively.
Investors should also note any recent changes to analyst estimates for Salesforce.com. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.03% higher. Salesforce.com currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Salesforce.com has a Forward P/E ratio of 30.57 right now. This represents a premium compared to its industry's average Forward P/E of 28.27.
It is also worth noting that CRM currently has a PEG ratio of 1.59. 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. The Computer - Software industry currently had an average PEG ratio of 2.42 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 92, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.