We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Salesforce (CRM) Stock Declines While Market Improves: Some Information for Investors
Read MoreHide Full Article
In the latest trading session, Salesforce (CRM - Free Report) closed at $185.09, marking a -1.12% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.44%. Elsewhere, the Dow gained 0.36%, while the tech-heavy Nasdaq added 0.54%.
Prior to today's trading, shares of the customer-management software developer had lost 7.39% lagged the Computer and Technology sector's loss of 2.47% and the S&P 500's loss of 3.31%.
Market participants will be closely following the financial results of Salesforce in its upcoming release. The company is expected to report EPS of $3.09, up 19.77% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $11.06 billion, reflecting a 12.51% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $13.1 per share and a revenue of $46.05 billion, demonstrating changes of +4.63% and +10.89%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Salesforce. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0% fall in the Zacks Consensus EPS estimate. Salesforce is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Salesforce is at present trading with a Forward P/E ratio of 14.29. This expresses a discount compared to the average Forward P/E of 19.28 of its industry.
Meanwhile, CRM's PEG ratio is currently 1.01. 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 Internet - Software industry was having an average PEG ratio of 1.07.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 150, which puts it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Salesforce (CRM) Stock Declines While Market Improves: Some Information for Investors
In the latest trading session, Salesforce (CRM - Free Report) closed at $185.09, marking a -1.12% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.44%. Elsewhere, the Dow gained 0.36%, while the tech-heavy Nasdaq added 0.54%.
Prior to today's trading, shares of the customer-management software developer had lost 7.39% lagged the Computer and Technology sector's loss of 2.47% and the S&P 500's loss of 3.31%.
Market participants will be closely following the financial results of Salesforce in its upcoming release. The company is expected to report EPS of $3.09, up 19.77% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $11.06 billion, reflecting a 12.51% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $13.1 per share and a revenue of $46.05 billion, demonstrating changes of +4.63% and +10.89%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Salesforce. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0% fall in the Zacks Consensus EPS estimate. Salesforce is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Salesforce is at present trading with a Forward P/E ratio of 14.29. This expresses a discount compared to the average Forward P/E of 19.28 of its industry.
Meanwhile, CRM's PEG ratio is currently 1.01. 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 Internet - Software industry was having an average PEG ratio of 1.07.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 150, which puts it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.