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Salesforce.com (CRM) Stock Sinks As Market Gains: What You Should Know
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Salesforce.com (CRM - Free Report) closed the most recent trading day at $260.50, moving -2.11% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.01%. Elsewhere, the Dow saw an upswing of 0.55%, while the tech-heavy Nasdaq depreciated by 0.44%.
Prior to today's trading, shares of the customer-management software developer had gained 0.73% outpaced the Computer and Technology sector's loss of 0.69% and lagged the S&P 500's gain of 0.86%.
The investment community will be paying close attention to the earnings performance of Salesforce.com in its upcoming release. It is anticipated that the company will report an EPS of $3.05, marking a 9.71% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.19 billion, up 11.94% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.76 per share and a revenue of $41.51 billion, indicating changes of +15.29% and +9.53%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Salesforcecom. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.01% higher. Salesforce.com is currently a Zacks Rank #3 (Hold).
In terms of valuation, Salesforce.com is currently trading at a Forward P/E ratio of 22.63. This signifies a discount in comparison to the average Forward P/E of 23.03 for its industry.
We can additionally observe that CRM currently boasts a PEG ratio of 1.51. 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 1.91.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 74, placing it within the top 31% of over 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Salesforce.com (CRM) Stock Sinks As Market Gains: What You Should Know
Salesforce.com (CRM - Free Report) closed the most recent trading day at $260.50, moving -2.11% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.01%. Elsewhere, the Dow saw an upswing of 0.55%, while the tech-heavy Nasdaq depreciated by 0.44%.
Prior to today's trading, shares of the customer-management software developer had gained 0.73% outpaced the Computer and Technology sector's loss of 0.69% and lagged the S&P 500's gain of 0.86%.
The investment community will be paying close attention to the earnings performance of Salesforce.com in its upcoming release. It is anticipated that the company will report an EPS of $3.05, marking a 9.71% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.19 billion, up 11.94% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.76 per share and a revenue of $41.51 billion, indicating changes of +15.29% and +9.53%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Salesforcecom. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.01% higher. Salesforce.com is currently a Zacks Rank #3 (Hold).
In terms of valuation, Salesforce.com is currently trading at a Forward P/E ratio of 22.63. This signifies a discount in comparison to the average Forward P/E of 23.03 for its industry.
We can additionally observe that CRM currently boasts a PEG ratio of 1.51. 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 1.91.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 74, placing it within the top 31% of over 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.