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Salesforce.com (CRM) Dips More Than Broader Markets: What You Should Know
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Salesforce.com (CRM - Free Report) closed the most recent trading day at $206.99, moving -0.86% from the previous trading session. This move lagged the S&P 500's daily loss of 0.76%. Meanwhile, the Dow lost 0.52%, and the Nasdaq, a tech-heavy index, lost 1.15%.
Prior to today's trading, shares of the customer-management software developer had lost 8.28% over the past month. This has lagged the Computer and Technology sector's loss of 3.9% and the S&P 500's loss of 1.4% in that time.
Salesforce.com will be looking to display strength as it nears its next earnings release, which is expected to be August 30, 2023. 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.
CRM's full-year Zacks Consensus Estimates are calling for earnings of $7.44 per share and revenue of $34.64 billion. These results would represent year-over-year changes of +41.98% and +10.5%, respectively.
It is also important to note the recent changes to analyst estimates for Salesforce.com. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate has moved 0.11% higher within the past month. Salesforce.com is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Salesforce.com is currently trading at a Forward P/E ratio of 28.06. This represents a discount compared to its industry's average Forward P/E of 28.49.
Also, we should mention that CRM has a PEG ratio of 1.46. 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. CRM's industry had an average PEG ratio of 2.4 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 76, which puts it in the top 31% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Salesforce.com (CRM) Dips More Than Broader Markets: What You Should Know
Salesforce.com (CRM - Free Report) closed the most recent trading day at $206.99, moving -0.86% from the previous trading session. This move lagged the S&P 500's daily loss of 0.76%. Meanwhile, the Dow lost 0.52%, and the Nasdaq, a tech-heavy index, lost 1.15%.
Prior to today's trading, shares of the customer-management software developer had lost 8.28% over the past month. This has lagged the Computer and Technology sector's loss of 3.9% and the S&P 500's loss of 1.4% in that time.
Salesforce.com will be looking to display strength as it nears its next earnings release, which is expected to be August 30, 2023. 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.
CRM's full-year Zacks Consensus Estimates are calling for earnings of $7.44 per share and revenue of $34.64 billion. These results would represent year-over-year changes of +41.98% and +10.5%, respectively.
It is also important to note the recent changes to analyst estimates for Salesforce.com. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate has moved 0.11% higher within the past month. Salesforce.com is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Salesforce.com is currently trading at a Forward P/E ratio of 28.06. This represents a discount compared to its industry's average Forward P/E of 28.49.
Also, we should mention that CRM has a PEG ratio of 1.46. 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. CRM's industry had an average PEG ratio of 2.4 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 76, which puts it in the top 31% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.