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Why the Market Dipped But Salesforce.com (CRM) Gained Today
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In the latest trading session, Salesforce.com (CRM - Free Report) closed at $215.28, marking a +0.77% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.08%. Elsewhere, the Dow saw an upswing of 0.16%, while the tech-heavy Nasdaq depreciated by 0.22%.
The customer-management software developer's shares have seen an increase of 4.42% over the last month, surpassing the Computer and Technology sector's gain of 2.9% and the S&P 500's gain of 1.42%.
Market participants will be closely following the financial results of Salesforce.com in its upcoming release. The company plans to announce its earnings on November 30, 2023. The company is predicted to post an EPS of $2.06, indicating a 47.14% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $8.71 billion, up 11.08% from the prior-year quarter.
CRM's full-year Zacks Consensus Estimates are calling for earnings of $8.06 per share and revenue of $34.75 billion. These results would represent year-over-year changes of +53.82% and +10.84%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Salesforce.com. Such recent modifications usually signify the changing landscape of near-term business trends. 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. 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.
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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, Salesforce.com boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Salesforce.com is currently trading at a Forward P/E ratio of 26.52. This indicates a discount in contrast to its industry's Forward P/E of 27.11.
Also, we should mention that CRM has a PEG ratio of 1.18. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer - Software industry had an average PEG ratio of 2.4 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 78, positioning it in the top 31% of all 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.
To follow CRM in the coming trading sessions, be sure to utilize Zacks.com.
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Why the Market Dipped But Salesforce.com (CRM) Gained Today
In the latest trading session, Salesforce.com (CRM - Free Report) closed at $215.28, marking a +0.77% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.08%. Elsewhere, the Dow saw an upswing of 0.16%, while the tech-heavy Nasdaq depreciated by 0.22%.
The customer-management software developer's shares have seen an increase of 4.42% over the last month, surpassing the Computer and Technology sector's gain of 2.9% and the S&P 500's gain of 1.42%.
Market participants will be closely following the financial results of Salesforce.com in its upcoming release. The company plans to announce its earnings on November 30, 2023. The company is predicted to post an EPS of $2.06, indicating a 47.14% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $8.71 billion, up 11.08% from the prior-year quarter.
CRM's full-year Zacks Consensus Estimates are calling for earnings of $8.06 per share and revenue of $34.75 billion. These results would represent year-over-year changes of +53.82% and +10.84%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Salesforce.com. Such recent modifications usually signify the changing landscape of near-term business trends. 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. 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.
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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, Salesforce.com boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Salesforce.com is currently trading at a Forward P/E ratio of 26.52. This indicates a discount in contrast to its industry's Forward P/E of 27.11.
Also, we should mention that CRM has a PEG ratio of 1.18. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer - Software industry had an average PEG ratio of 2.4 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 78, positioning it in the top 31% of all 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.
To follow CRM in the coming trading sessions, be sure to utilize Zacks.com.