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Salesforce.com (CRM) Suffers a Larger Drop Than the General Market: Key Insights
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In the latest trading session, Salesforce.com (CRM - Free Report) closed at $254.44, marking a -2.64% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 1.17%. Elsewhere, the Dow lost 0.53%, while the tech-heavy Nasdaq lost 2.04%.
Coming into today, shares of the customer-management software developer had gained 6.33% in the past month. In that same time, the Computer and Technology sector gained 5.49%, while the S&P 500 gained 2.12%.
The investment community will be paying close attention to the earnings performance of Salesforce.com in its upcoming release. The company is expected to report EPS of $2.85, up 18.26% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $10.26 billion, reflecting a 8.68% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $11.36 per share and revenue of $41.21 billion. These totals would mark changes of +11.37% and +10.82%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Salesforcecom. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 a 0% fall in the Zacks Consensus EPS estimate. Salesforce.com currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Salesforce.com has a Forward P/E ratio of 23.01 right now. Its industry sports an average Forward P/E of 29.01, so one might conclude that Salesforce.com is trading at a discount comparatively.
Also, we should mention that CRM has a PEG ratio of 1.66. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 1.89.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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Salesforce.com (CRM) Suffers a Larger Drop Than the General Market: Key Insights
In the latest trading session, Salesforce.com (CRM - Free Report) closed at $254.44, marking a -2.64% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 1.17%. Elsewhere, the Dow lost 0.53%, while the tech-heavy Nasdaq lost 2.04%.
Coming into today, shares of the customer-management software developer had gained 6.33% in the past month. In that same time, the Computer and Technology sector gained 5.49%, while the S&P 500 gained 2.12%.
The investment community will be paying close attention to the earnings performance of Salesforce.com in its upcoming release. The company is expected to report EPS of $2.85, up 18.26% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $10.26 billion, reflecting a 8.68% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $11.36 per share and revenue of $41.21 billion. These totals would mark changes of +11.37% and +10.82%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Salesforcecom. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 a 0% fall in the Zacks Consensus EPS estimate. Salesforce.com currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Salesforce.com has a Forward P/E ratio of 23.01 right now. Its industry sports an average Forward P/E of 29.01, so one might conclude that Salesforce.com is trading at a discount comparatively.
Also, we should mention that CRM has a PEG ratio of 1.66. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 1.89.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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 follow all of these stock-moving metrics, and many more, on Zacks.com.