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Salesforce.com (CRM) Advances While Market Declines: Some Information for Investors
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Salesforce.com (CRM - Free Report) closed the most recent trading day at $245.33, moving +2.04% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.28%. At the same time, the Dow lost 0.52%, and the tech-heavy Nasdaq lost 0.08%.
The customer-management software developer's stock has dropped by 0.88% in the past month, falling short of the Computer and Technology sector's gain of 7.19% and the S&P 500's gain of 4.03%.
The investment community will be paying close attention to the earnings performance of Salesforce.com in its upcoming release. In that report, analysts expect Salesforce.com to post earnings of $2.85 per share. This would mark year-over-year growth of 18.26%. Our most recent consensus estimate is calling for quarterly revenue of $10.26 billion, up 8.68% from the year-ago period.
CRM's full-year Zacks Consensus Estimates are calling for earnings of $11.35 per share and revenue of $41.21 billion. These results would represent year-over-year changes of +11.27% and +8.76%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Salesforcecom. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% higher. Salesforce.com is currently a Zacks Rank #3 (Hold).
Digging into valuation, Salesforce.com currently has a Forward P/E ratio of 21.19. This denotes a discount relative to the industry average Forward P/E of 27.31.
Meanwhile, CRM's PEG ratio is currently 1.57. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 2.09.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 94, positioning it in the top 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Salesforce.com (CRM) Advances While Market Declines: Some Information for Investors
Salesforce.com (CRM - Free Report) closed the most recent trading day at $245.33, moving +2.04% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.28%. At the same time, the Dow lost 0.52%, and the tech-heavy Nasdaq lost 0.08%.
The customer-management software developer's stock has dropped by 0.88% in the past month, falling short of the Computer and Technology sector's gain of 7.19% and the S&P 500's gain of 4.03%.
The investment community will be paying close attention to the earnings performance of Salesforce.com in its upcoming release. In that report, analysts expect Salesforce.com to post earnings of $2.85 per share. This would mark year-over-year growth of 18.26%. Our most recent consensus estimate is calling for quarterly revenue of $10.26 billion, up 8.68% from the year-ago period.
CRM's full-year Zacks Consensus Estimates are calling for earnings of $11.35 per share and revenue of $41.21 billion. These results would represent year-over-year changes of +11.27% and +8.76%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Salesforcecom. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% higher. Salesforce.com is currently a Zacks Rank #3 (Hold).
Digging into valuation, Salesforce.com currently has a Forward P/E ratio of 21.19. This denotes a discount relative to the industry average Forward P/E of 27.31.
Meanwhile, CRM's PEG ratio is currently 1.57. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 2.09.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 94, positioning it in the top 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.