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Salesforce.com (CRM) Beats Stock Market Upswing: What Investors Need to Know
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Salesforce.com (CRM - Free Report) closed the latest trading day at $274.46, indicating a +1.11% change from the previous session's end. The stock outpaced the S&P 500's daily gain of 0.88%. Meanwhile, the Dow gained 0.54%, and the Nasdaq, a tech-heavy index, added 1.35%.
Prior to today's trading, shares of the customer-management software developer had gained 4.3% over the past month. This has outpaced the Computer and Technology sector's gain of 0.72% and the S&P 500's gain of 0.64% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Salesforce.com in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.26, marking a 34.52% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $9.21 billion, showing a 9.87% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.20 per share and a revenue of $34.78 billion, indicating changes of +56.49% and +10.94%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Salesforce.com. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Salesforce.com is currently sporting a Zacks Rank of #2 (Buy).
Looking at valuation, Salesforce.com is presently trading at a Forward P/E ratio of 33.11. This indicates a premium in contrast to its industry's Forward P/E of 33.07.
We can additionally observe that CRM currently boasts a PEG ratio of 1.54. 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 average PEG ratio for the Computer - Software industry stood at 2.25 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 101, finds itself in the top 41% echelons 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Salesforce.com (CRM) Beats Stock Market Upswing: What Investors Need to Know
Salesforce.com (CRM - Free Report) closed the latest trading day at $274.46, indicating a +1.11% change from the previous session's end. The stock outpaced the S&P 500's daily gain of 0.88%. Meanwhile, the Dow gained 0.54%, and the Nasdaq, a tech-heavy index, added 1.35%.
Prior to today's trading, shares of the customer-management software developer had gained 4.3% over the past month. This has outpaced the Computer and Technology sector's gain of 0.72% and the S&P 500's gain of 0.64% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Salesforce.com in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.26, marking a 34.52% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $9.21 billion, showing a 9.87% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.20 per share and a revenue of $34.78 billion, indicating changes of +56.49% and +10.94%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Salesforce.com. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Salesforce.com is currently sporting a Zacks Rank of #2 (Buy).
Looking at valuation, Salesforce.com is presently trading at a Forward P/E ratio of 33.11. This indicates a premium in contrast to its industry's Forward P/E of 33.07.
We can additionally observe that CRM currently boasts a PEG ratio of 1.54. 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 average PEG ratio for the Computer - Software industry stood at 2.25 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 101, finds itself in the top 41% echelons 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.