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Salesforce.com (CRM) Stock Slides as Market Rises: Facts to Know Before You Trade
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In the latest market close, Salesforce.com (CRM - Free Report) reached $207.42, with a -0.02% movement compared to the previous day. This change lagged the S&P 500's daily gain of 0.18%. On the other hand, the Dow registered a gain of 0.1%, and the technology-centric Nasdaq increased by 0.3%.
Prior to today's trading, shares of the customer-management software developer had gained 0.05% over the past month. This has lagged the Computer and Technology sector's gain of 3.65% and the S&P 500's gain of 3.08% in that time.
Investors will be eagerly watching for the performance of Salesforce.com in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.06, signifying a 47.14% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $8.71 billion, indicating a 11.08% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.06 per share and revenue of $34.75 billion, indicating changes of +53.82% and +10.84%, respectively, compared to the previous year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Salesforce.com. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Salesforce.com is currently a Zacks Rank #3 (Hold).
In the context of valuation, Salesforce.com is at present trading with a Forward P/E ratio of 25.75. This signifies a discount in comparison to the average Forward P/E of 26.54 for its industry.
Also, we should mention that CRM has a PEG ratio of 1.14. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.27.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 64, positioning it in the top 26% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Salesforce.com (CRM) Stock Slides as Market Rises: Facts to Know Before You Trade
In the latest market close, Salesforce.com (CRM - Free Report) reached $207.42, with a -0.02% movement compared to the previous day. This change lagged the S&P 500's daily gain of 0.18%. On the other hand, the Dow registered a gain of 0.1%, and the technology-centric Nasdaq increased by 0.3%.
Prior to today's trading, shares of the customer-management software developer had gained 0.05% over the past month. This has lagged the Computer and Technology sector's gain of 3.65% and the S&P 500's gain of 3.08% in that time.
Investors will be eagerly watching for the performance of Salesforce.com in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.06, signifying a 47.14% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $8.71 billion, indicating a 11.08% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.06 per share and revenue of $34.75 billion, indicating changes of +53.82% and +10.84%, respectively, compared to the previous year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Salesforce.com. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Salesforce.com is currently a Zacks Rank #3 (Hold).
In the context of valuation, Salesforce.com is at present trading with a Forward P/E ratio of 25.75. This signifies a discount in comparison to the average Forward P/E of 26.54 for its industry.
Also, we should mention that CRM has a PEG ratio of 1.14. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.27.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 64, positioning it in the top 26% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.