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Salesforce.com (CRM) Suffers a Larger Drop Than the General Market: Key Insights
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The latest trading session saw Salesforce.com (CRM - Free Report) ending at $202, denoting a -0.85% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a loss of 0.17% for the day. At the same time, the Dow lost 0.58%, and the tech-heavy Nasdaq gained 0.27%.
Shares of the customer-management software developer witnessed a loss of 1.31% over the previous month, beating the performance of the Computer and Technology sector with its loss of 2.16% and the S&P 500's loss of 3.95%.
The investment community will be paying close attention to the earnings performance of Salesforce.com in its upcoming release. On that day, Salesforce.com is projected to report earnings of $2.06 per share, which would represent year-over-year growth of 47.14%. Simultaneously, our latest consensus estimate expects the revenue to be $8.71 billion, showing a 11.08% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.06 per share and revenue of $34.75 billion. These totals would mark changes of +53.82% and +10.84%, respectively, from last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Salesforce.com. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
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, 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Salesforce.com presently features a Zacks Rank of #2 (Buy).
Looking at valuation, Salesforce.com is presently trading at a Forward P/E ratio of 25.29. This denotes a discount relative to the industry's average Forward P/E of 27.1.
Investors should also note that CRM has a PEG ratio of 1.12 right now. 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. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 2.12.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 145, placing it within the bottom 43% of over 250 industries.
The Zacks Industry Rank is ordered 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Salesforce.com (CRM) Suffers a Larger Drop Than the General Market: Key Insights
The latest trading session saw Salesforce.com (CRM - Free Report) ending at $202, denoting a -0.85% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a loss of 0.17% for the day. At the same time, the Dow lost 0.58%, and the tech-heavy Nasdaq gained 0.27%.
Shares of the customer-management software developer witnessed a loss of 1.31% over the previous month, beating the performance of the Computer and Technology sector with its loss of 2.16% and the S&P 500's loss of 3.95%.
The investment community will be paying close attention to the earnings performance of Salesforce.com in its upcoming release. On that day, Salesforce.com is projected to report earnings of $2.06 per share, which would represent year-over-year growth of 47.14%. Simultaneously, our latest consensus estimate expects the revenue to be $8.71 billion, showing a 11.08% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.06 per share and revenue of $34.75 billion. These totals would mark changes of +53.82% and +10.84%, respectively, from last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Salesforce.com. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
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, 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Salesforce.com presently features a Zacks Rank of #2 (Buy).
Looking at valuation, Salesforce.com is presently trading at a Forward P/E ratio of 25.29. This denotes a discount relative to the industry's average Forward P/E of 27.1.
Investors should also note that CRM has a PEG ratio of 1.12 right now. 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. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 2.12.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 145, placing it within the bottom 43% of over 250 industries.
The Zacks Industry Rank is ordered 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.
You can find more information on all of these metrics, and much more, on Zacks.com.