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Salesforce.com (CRM) Surpasses Market Returns: Some Facts Worth Knowing

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Salesforce.com (CRM - Free Report) ended the recent trading session at $287.07, demonstrating a +0.51% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.09%. Elsewhere, the Dow saw a downswing of 0.49%, while the tech-heavy Nasdaq appreciated by 0.65%.

Prior to today's trading, shares of the customer-management software developer had gained 5.64% over the past month. This has lagged the Computer and Technology sector's gain of 7.36% and the S&P 500's gain of 5.78% in that time.

Investors will be eagerly watching for the performance of Salesforce.com in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 29, 2024. It is anticipated that the company will report an EPS of $2.38, marking a 40.83% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $9.14 billion, up 10.82% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $9.71 per share and revenue of $37.93 billion, which would represent changes of +18.13% and +8.82%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Salesforce.com. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Salesforce.com is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Salesforce.com is currently trading at a Forward P/E ratio of 29.4. This denotes a premium relative to the industry's average Forward P/E of 29.22.

Also, we should mention that CRM has a PEG ratio of 1.69. 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 industry currently had an average PEG ratio of 2.45 as of yesterday's close.

The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 68, placing it within the top 27% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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