In the latest trading session, Salesforce.com (CRM - Free Report) closed at $121.33, marking a -1.29% move from the previous day. This change was narrower than the S&P 500's 2.71% loss on the day. At the same time, the Dow lost 2.91%, and the tech-heavy Nasdaq lost 2.21%.
Heading into today, shares of the customer-management software developer had lost 0.55% over the past month, outpacing the Computer and Technology sector's loss of 6.7% and the S&P 500's loss of 8.68% in that time.
Wall Street will be looking for positivity from CRM as it approaches its next earnings report date. This is expected to be February 27, 2019. The company is expected to report EPS of $0.56, up 60% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.56 billion, up 24.92% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.61 per share and revenue of $13.24 billion. These totals would mark changes of +93.33% and +26.3%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for CRM. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 8.22% higher. CRM is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that CRM has a Forward P/E ratio of 47.07 right now. This valuation marks a premium compared to its industry's average Forward P/E of 25.26.
We can also see that CRM currently has a PEG ratio of 1.95. 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 1.95 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 44, putting it in the top 17% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.