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The latest trading session saw Salesforce.com (CRM - Free Report) ending at $276.88, denoting a +0.04% adjustment from its last day's close. This change lagged the S&P 500's 0.08% gain on the day. Meanwhile, the Dow lost 0.26%, and the Nasdaq, a tech-heavy index, added 0.36%.
The customer-management software developer's stock has climbed by 3.96% in the past month, falling short of the Computer and Technology sector's gain of 4.29% and outpacing the S&P 500's gain of 2.4%.
Market participants will be closely following the financial results of Salesforce.com in its upcoming release. The company is predicted to post an EPS of $2.26, indicating a 34.52% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $9.21 billion, indicating a 9.87% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.20 per share and revenue of $34.78 billion. These totals would mark changes of +56.49% and +10.94%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Salesforce.com. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. At present, Salesforce.com boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Salesforce.com is currently being traded at a Forward P/E ratio of 33.76. For comparison, its industry has an average Forward P/E of 33.45, which means Salesforce.com is trading at a premium to the group.
Investors should also note that CRM has a PEG ratio of 1.57 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.36.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 96, placing it within the top 39% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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) Rises Yet Lags Behind Market: Some Facts Worth Knowing
The latest trading session saw Salesforce.com (CRM - Free Report) ending at $276.88, denoting a +0.04% adjustment from its last day's close. This change lagged the S&P 500's 0.08% gain on the day. Meanwhile, the Dow lost 0.26%, and the Nasdaq, a tech-heavy index, added 0.36%.
The customer-management software developer's stock has climbed by 3.96% in the past month, falling short of the Computer and Technology sector's gain of 4.29% and outpacing the S&P 500's gain of 2.4%.
Market participants will be closely following the financial results of Salesforce.com in its upcoming release. The company is predicted to post an EPS of $2.26, indicating a 34.52% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $9.21 billion, indicating a 9.87% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.20 per share and revenue of $34.78 billion. These totals would mark changes of +56.49% and +10.94%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Salesforce.com. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. At present, Salesforce.com boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Salesforce.com is currently being traded at a Forward P/E ratio of 33.76. For comparison, its industry has an average Forward P/E of 33.45, which means Salesforce.com is trading at a premium to the group.
Investors should also note that CRM has a PEG ratio of 1.57 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.36.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 96, placing it within the top 39% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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.