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Salesforce.com (CRM) Exceeds Market Returns: Some Facts to Consider
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Salesforce.com (CRM - Free Report) closed at $271.93 in the latest trading session, marking a +0.2% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.08%. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, added 0.02%.
Coming into today, shares of the customer-management software developer had gained 5.51% in the past month. In that same time, the Computer and Technology sector gained 2.68%, while the S&P 500 gained 3.52%.
The investment community will be closely monitoring the performance of Salesforce.com in its forthcoming earnings report. The company is expected to report EPS of $2.26, up 34.52% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.21 billion, up 9.87% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.20 per share and revenue of $34.78 billion, indicating changes of +56.49% and +10.94%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Salesforce.com. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Salesforce.com is holding a Zacks Rank of #2 (Buy) right now.
With respect to valuation, Salesforce.com is currently being traded at a Forward P/E ratio of 33.1. This denotes no noticeable deviation relative to the industry's average Forward P/E of 33.1.
One should further note that CRM currently holds a PEG ratio of 1.54. 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. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.23.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 95, this industry ranks in the top 38% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
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) Exceeds Market Returns: Some Facts to Consider
Salesforce.com (CRM - Free Report) closed at $271.93 in the latest trading session, marking a +0.2% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.08%. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, added 0.02%.
Coming into today, shares of the customer-management software developer had gained 5.51% in the past month. In that same time, the Computer and Technology sector gained 2.68%, while the S&P 500 gained 3.52%.
The investment community will be closely monitoring the performance of Salesforce.com in its forthcoming earnings report. The company is expected to report EPS of $2.26, up 34.52% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.21 billion, up 9.87% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.20 per share and revenue of $34.78 billion, indicating changes of +56.49% and +10.94%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Salesforce.com. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Salesforce.com is holding a Zacks Rank of #2 (Buy) right now.
With respect to valuation, Salesforce.com is currently being traded at a Forward P/E ratio of 33.1. This denotes no noticeable deviation relative to the industry's average Forward P/E of 33.1.
One should further note that CRM currently holds a PEG ratio of 1.54. 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. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.23.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 95, this industry ranks in the top 38% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.