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Salesforce.com (CRM) Gains As Market Dips: What You Should Know
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Salesforce.com (CRM - Free Report) closed the most recent trading day at $132.11, moving +1.23% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.15%. Elsewhere, the Dow lost 0.4%, while the tech-heavy Nasdaq 0%.
Heading into today, shares of the customer-management software developer had lost 8.07% over the past month, lagging the Computer and Technology sector's loss of 5.26% and the S&P 500's loss of 1.27% in that time.
Investors will be hoping for strength from CRM as it approaches its next earnings release, which is expected to be November 27, 2018. On that day, CRM is projected to report earnings of $0.50 per share, which would represent year-over-year growth of 28.21%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.37 billion, up 25.68% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.51 per share and revenue of $13.17 billion, which would represent changes of +85.93% and +25.7%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for CRM. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CRM is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that CRM has a Forward P/E ratio of 51.9 right now. This valuation marks a premium compared to its industry's average Forward P/E of 30.55.
It is also worth noting that CRM currently has a PEG ratio of 2.08. 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. Computer - Software stocks are, on average, holding a PEG ratio of 2.08 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 82, which puts it in the top 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Salesforce.com (CRM) Gains As Market Dips: What You Should Know
Salesforce.com (CRM - Free Report) closed the most recent trading day at $132.11, moving +1.23% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.15%. Elsewhere, the Dow lost 0.4%, while the tech-heavy Nasdaq 0%.
Heading into today, shares of the customer-management software developer had lost 8.07% over the past month, lagging the Computer and Technology sector's loss of 5.26% and the S&P 500's loss of 1.27% in that time.
Investors will be hoping for strength from CRM as it approaches its next earnings release, which is expected to be November 27, 2018. On that day, CRM is projected to report earnings of $0.50 per share, which would represent year-over-year growth of 28.21%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.37 billion, up 25.68% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.51 per share and revenue of $13.17 billion, which would represent changes of +85.93% and +25.7%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for CRM. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CRM is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that CRM has a Forward P/E ratio of 51.9 right now. This valuation marks a premium compared to its industry's average Forward P/E of 30.55.
It is also worth noting that CRM currently has a PEG ratio of 2.08. 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. Computer - Software stocks are, on average, holding a PEG ratio of 2.08 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 82, which puts it in the top 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.