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Salesforce (CRM) Stock Drops Despite Market Gains: Important Facts to Note
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In the latest trading session, Salesforce (CRM - Free Report) closed at $181.08, marking a -3.16% move from the previous day. This move lagged the S&P 500's daily gain of 1.46%. Meanwhile, the Dow gained 1.24%, and the Nasdaq, a tech-heavy index, added 2.03%.
Prior to today's trading, shares of the customer-management software developer had gained 2.2% lagged the Computer and Technology sector's gain of 19.39% and the S&P 500's gain of 10.32%.
Analysts and investors alike will be keeping a close eye on the performance of Salesforce in its upcoming earnings disclosure. The company is predicted to post an EPS of $3.12, indicating a 20.93% growth compared to the equivalent quarter last year. 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.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $13.15 per share and a revenue of $46.05 billion, indicating changes of +5.03% and +10.89%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Salesforce. 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.02% upward. Salesforce currently has a Zacks Rank of #2 (Buy).
In the context of valuation, Salesforce is at present trading with a Forward P/E ratio of 14.22. This expresses a discount compared to the average Forward P/E of 19.67 of its industry.
Investors should also note that CRM has a PEG ratio of 0.96 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CRM's industry had an average PEG ratio of 1.13 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 85, this industry ranks in the top 35% of all industries, numbering over 250.
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.
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 (CRM) Stock Drops Despite Market Gains: Important Facts to Note
In the latest trading session, Salesforce (CRM - Free Report) closed at $181.08, marking a -3.16% move from the previous day. This move lagged the S&P 500's daily gain of 1.46%. Meanwhile, the Dow gained 1.24%, and the Nasdaq, a tech-heavy index, added 2.03%.
Prior to today's trading, shares of the customer-management software developer had gained 2.2% lagged the Computer and Technology sector's gain of 19.39% and the S&P 500's gain of 10.32%.
Analysts and investors alike will be keeping a close eye on the performance of Salesforce in its upcoming earnings disclosure. The company is predicted to post an EPS of $3.12, indicating a 20.93% growth compared to the equivalent quarter last year. 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.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $13.15 per share and a revenue of $46.05 billion, indicating changes of +5.03% and +10.89%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Salesforce. 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.02% upward. Salesforce currently has a Zacks Rank of #2 (Buy).
In the context of valuation, Salesforce is at present trading with a Forward P/E ratio of 14.22. This expresses a discount compared to the average Forward P/E of 19.67 of its industry.
Investors should also note that CRM has a PEG ratio of 0.96 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CRM's industry had an average PEG ratio of 1.13 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 85, this industry ranks in the top 35% of all industries, numbering over 250.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.