Back to top

Video Blog

This video takes a quick look at Salesforce.com (CRM - Free Report) shares ahead of their earnings report. This cloud-focused company has been in the news a lot lately, and it is undoubtedly looking to get back on track and stretch back to 52 week highs following this report.

However, investors should note that CRM shares have very mediocre fundamentals, which include a Zacks Rank #3 (hold) and a ‘C’ grade for its VGM score. So, overall earnings estimates have been mixed, while the company’s poor value metrics (F grade here) are balanced by its strong showing on the growth front (A grade in this area).

Still, investors should note that the company is in the top 40% from an industry rank look, so the overall fundamentals for the segment appear to be relatively strong. But one caveat to this is CRM’s extremely poor history in earnings season, as the company has missed estimates in two of the last four quarters, and it had a six-quarter streak without a beat not too long ago.

SALESFORCE.COM Price, Consensus and EPS Surprise

SALESFORCE.COM Price, Consensus and EPS Surprise | SALESFORCE.COM Quote

It is hard to trust CRM based on these numbers, and especially with a downward slope on the estimate front. This is an area of the market where guidance is usually key though, so be on the lookout for this to override any sort of negativity we see in the near-term metrics for the report.

Salesforce.com reports after the bell on 11/17 and we are looking for earnings of $0.03 per share (before non-recurring items). Make sure to watch the video for a quick guide to CRM stock heading into the report. That said, if you want to learn more about trading in earnings season, then check out David Bartosiak's views on Salesforce. Furthermore, he gives us some ideas on how to play the options market, and you can watch his views below.

The Best & Worst of Zacks

Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +26% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 11X worse than the market. See these critical buys and sells free >>

In-Depth Zacks Research for the Tickers Above

SALESFORCE.COM (CRM) - FREE report >>