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Salesforce.com (CRM) Gains But Lags Market: What You Should Know
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In the latest market close, Salesforce.com (CRM - Free Report) reached $275.63, with a +0.72% movement compared to the previous day. This move lagged the S&P 500's daily gain of 1.03%. Meanwhile, the Dow gained 0.46%, and the Nasdaq, a tech-heavy index, added 1.19%.
Shares of the customer-management software developer have depreciated by 9.36% over the course of the past month, underperforming the Computer and Technology sector's loss of 0.68% and the S&P 500's loss of 1.57%.
Analysts and investors alike will be keeping a close eye on the performance of Salesforce.com in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.38, showcasing a 40.83% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $9.14 billion, reflecting a 10.82% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $9.71 per share and a revenue of $37.93 billion, demonstrating changes of +18.13% and +8.82%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Salesforce.com. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Salesforce.com currently has a Zacks Rank of #2 (Buy).
With respect to valuation, Salesforce.com is currently being traded at a Forward P/E ratio of 28.17. This valuation marks a discount compared to its industry's average Forward P/E of 29.33.
Also, we should mention that CRM has a PEG ratio of 1.61. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Software was holding an average PEG ratio of 2.26 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 81, finds itself in the top 33% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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) Gains But Lags Market: What You Should Know
In the latest market close, Salesforce.com (CRM - Free Report) reached $275.63, with a +0.72% movement compared to the previous day. This move lagged the S&P 500's daily gain of 1.03%. Meanwhile, the Dow gained 0.46%, and the Nasdaq, a tech-heavy index, added 1.19%.
Shares of the customer-management software developer have depreciated by 9.36% over the course of the past month, underperforming the Computer and Technology sector's loss of 0.68% and the S&P 500's loss of 1.57%.
Analysts and investors alike will be keeping a close eye on the performance of Salesforce.com in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.38, showcasing a 40.83% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $9.14 billion, reflecting a 10.82% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $9.71 per share and a revenue of $37.93 billion, demonstrating changes of +18.13% and +8.82%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Salesforce.com. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Salesforce.com currently has a Zacks Rank of #2 (Buy).
With respect to valuation, Salesforce.com is currently being traded at a Forward P/E ratio of 28.17. This valuation marks a discount compared to its industry's average Forward P/E of 29.33.
Also, we should mention that CRM has a PEG ratio of 1.61. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Software was holding an average PEG ratio of 2.26 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 81, finds itself in the top 33% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.