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Why Salesforce (CRM) Dipped More Than Broader Market Today
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Salesforce (CRM - Free Report) closed at $226.18 in the latest trading session, marking a -1.3% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.51%. On the other hand, the Dow registered a gain of 0.41%, and the technology-centric Nasdaq decreased by 1.07%.
Heading into today, shares of the customer-management software developer had lost 2.35% over the past month, outpacing the Computer and Technology sector's loss of 9.88% and lagging the S&P 500's loss of 0.87%.
Market participants will be closely following the financial results of Salesforce in its upcoming release. The company's earnings per share (EPS) are projected to be $3.43, reflecting a 5.54% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $11.46 billion, indicating a 11.73% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $16.72 per share and revenue of $46.25 billion, which would represent changes of +33.55% and +11.38%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Salesforce. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health 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.
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 moved 0.03% higher. As of now, Salesforce holds a Zacks Rank of #2 (Buy).
Investors should also note Salesforce's current valuation metrics, including its Forward P/E ratio of 13.71. For comparison, its industry has an average Forward P/E of 20.3, which means Salesforce is trading at a discount to the group.
Investors should also note that CRM has a PEG ratio of 0.8 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. The Internet - Software was holding an average PEG ratio of 1.27 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 38% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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Why Salesforce (CRM) Dipped More Than Broader Market Today
Salesforce (CRM - Free Report) closed at $226.18 in the latest trading session, marking a -1.3% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.51%. On the other hand, the Dow registered a gain of 0.41%, and the technology-centric Nasdaq decreased by 1.07%.
Heading into today, shares of the customer-management software developer had lost 2.35% over the past month, outpacing the Computer and Technology sector's loss of 9.88% and lagging the S&P 500's loss of 0.87%.
Market participants will be closely following the financial results of Salesforce in its upcoming release. The company's earnings per share (EPS) are projected to be $3.43, reflecting a 5.54% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $11.46 billion, indicating a 11.73% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $16.72 per share and revenue of $46.25 billion, which would represent changes of +33.55% and +11.38%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Salesforce. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health 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.
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 moved 0.03% higher. As of now, Salesforce holds a Zacks Rank of #2 (Buy).
Investors should also note Salesforce's current valuation metrics, including its Forward P/E ratio of 13.71. For comparison, its industry has an average Forward P/E of 20.3, which means Salesforce is trading at a discount to the group.
Investors should also note that CRM has a PEG ratio of 0.8 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. The Internet - Software was holding an average PEG ratio of 1.27 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 38% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.