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Here's Why Salesforce (CRM) Fell More Than Broader Market
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Salesforce (CRM - Free Report) closed the most recent trading day at $156.93, moving -3.72% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 1.21%. Elsewhere, the Dow lost 0.97%, while the tech-heavy Nasdaq lost 2.15%.
The customer-management software developer's stock has climbed by 6.7% in the past month, exceeding the Computer and Technology sector's loss of 4.58% and the S&P 500's gain of 0.42%.
Investors will be eagerly watching for the performance of Salesforce in its upcoming earnings disclosure. The company's upcoming EPS is projected at $3.27, signifying a 12.37% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $11.3 billion, reflecting a 10.44% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $14.12 per share and a revenue of $46.09 billion, signifying shifts of +12.78% and +10.99%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Salesforce. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
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 0.14% fall in the Zacks Consensus EPS estimate. At present, Salesforce boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Salesforce is presently being traded at a Forward P/E ratio of 11.55. Its industry sports an average Forward P/E of 18.63, so one might conclude that Salesforce is trading at a discount comparatively.
One should further note that CRM currently holds a PEG ratio of 0.64. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry currently had an average PEG ratio of 1.01 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 152, placing it within the bottom 39% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
View the Zacks #1 Rank List
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Here's Why Salesforce (CRM) Fell More Than Broader Market
Salesforce (CRM - Free Report) closed the most recent trading day at $156.93, moving -3.72% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 1.21%. Elsewhere, the Dow lost 0.97%, while the tech-heavy Nasdaq lost 2.15%.
The customer-management software developer's stock has climbed by 6.7% in the past month, exceeding the Computer and Technology sector's loss of 4.58% and the S&P 500's gain of 0.42%.
Investors will be eagerly watching for the performance of Salesforce in its upcoming earnings disclosure. The company's upcoming EPS is projected at $3.27, signifying a 12.37% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $11.3 billion, reflecting a 10.44% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $14.12 per share and a revenue of $46.09 billion, signifying shifts of +12.78% and +10.99%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Salesforce. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
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 0.14% fall in the Zacks Consensus EPS estimate. At present, Salesforce boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Salesforce is presently being traded at a Forward P/E ratio of 11.55. Its industry sports an average Forward P/E of 18.63, so one might conclude that Salesforce is trading at a discount comparatively.
One should further note that CRM currently holds a PEG ratio of 0.64. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry currently had an average PEG ratio of 1.01 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 152, placing it within the bottom 39% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.