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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 $293.77, indicating a +1.14% change from the previous session's end. The stock's change was more than the S&P 500's daily gain of 0.27%. Elsewhere, the Dow saw an upswing of 0.65%, while the tech-heavy Nasdaq appreciated by 0.26%.
Coming into today, shares of the customer-management software developer had gained 5% in the past month. In that same time, the Computer and Technology sector gained 2.21%, while the S&P 500 gained 2%.
Analysts and investors alike will be keeping a close eye on the performance of Salesforce.com in its upcoming earnings disclosure. The company is expected to report EPS of $2.43, up 15.17% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $9.34 billion, up 7.1% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.08 per share and a revenue of $37.86 billion, representing changes of +22.63% and +8.6%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Salesforce.com. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. Right now, Salesforce.com possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Salesforce.com is presently trading at a Forward P/E ratio of 28.81. This valuation marks a discount compared to its industry's average Forward P/E of 29.78.
It's also important to note that CRM currently trades at a PEG ratio of 1.97. 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 Computer - Software industry had an average PEG ratio of 2.48 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 67, putting it in the top 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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 $293.77, indicating a +1.14% change from the previous session's end. The stock's change was more than the S&P 500's daily gain of 0.27%. Elsewhere, the Dow saw an upswing of 0.65%, while the tech-heavy Nasdaq appreciated by 0.26%.
Coming into today, shares of the customer-management software developer had gained 5% in the past month. In that same time, the Computer and Technology sector gained 2.21%, while the S&P 500 gained 2%.
Analysts and investors alike will be keeping a close eye on the performance of Salesforce.com in its upcoming earnings disclosure. The company is expected to report EPS of $2.43, up 15.17% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $9.34 billion, up 7.1% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.08 per share and a revenue of $37.86 billion, representing changes of +22.63% and +8.6%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Salesforce.com. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. Right now, Salesforce.com possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Salesforce.com is presently trading at a Forward P/E ratio of 28.81. This valuation marks a discount compared to its industry's average Forward P/E of 29.78.
It's also important to note that CRM currently trades at a PEG ratio of 1.97. 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 Computer - Software industry had an average PEG ratio of 2.48 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 67, putting it in the top 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.