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Salesforce (CRM) Stock Drops Despite Market Gains: Important Facts to Note
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In the latest close session, Salesforce (CRM - Free Report) was down 2.71% at $240.89. This change lagged the S&P 500's daily gain of 0.6%. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, added 1.18%.
The customer-management software developer's shares have seen an increase of 8.95% over the last month, surpassing the Computer and Technology sector's loss of 6.18% and the S&P 500's loss of 0.79%.
The investment community will be closely monitoring the performance of Salesforce in its forthcoming earnings report. The company is expected to report EPS of $3.43, up 5.54% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $11.46 billion, indicating a 11.73% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $16.72 per share and a revenue of $46.25 billion, indicating changes of +33.55% and +11.38%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Salesforce. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.03% increase. Currently, Salesforce is carrying a Zacks Rank of #2 (Buy).
Looking at its valuation, Salesforce is holding a Forward P/E ratio of 14.81. This valuation marks a discount compared to its industry average Forward P/E of 21.46.
Also, we should mention that CRM has a PEG ratio of 0.86. 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. The Internet - Software industry had an average PEG ratio of 1.27 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 90, finds itself in the top 37% echelons of all 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
View the Zacks #1 Rank List
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Salesforce (CRM) Stock Drops Despite Market Gains: Important Facts to Note
In the latest close session, Salesforce (CRM - Free Report) was down 2.71% at $240.89. This change lagged the S&P 500's daily gain of 0.6%. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, added 1.18%.
The customer-management software developer's shares have seen an increase of 8.95% over the last month, surpassing the Computer and Technology sector's loss of 6.18% and the S&P 500's loss of 0.79%.
The investment community will be closely monitoring the performance of Salesforce in its forthcoming earnings report. The company is expected to report EPS of $3.43, up 5.54% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $11.46 billion, indicating a 11.73% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $16.72 per share and a revenue of $46.25 billion, indicating changes of +33.55% and +11.38%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Salesforce. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.03% increase. Currently, Salesforce is carrying a Zacks Rank of #2 (Buy).
Looking at its valuation, Salesforce is holding a Forward P/E ratio of 14.81. This valuation marks a discount compared to its industry average Forward P/E of 21.46.
Also, we should mention that CRM has a PEG ratio of 0.86. 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. The Internet - Software industry had an average PEG ratio of 1.27 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 90, finds itself in the top 37% echelons of all 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.