Salesforce.com (CRM - Free Report) closed the most recent trading day at $158.69, moving -0.87% from the previous trading session. This move lagged the S&P 500's daily gain of 0.05%. Elsewhere, the Dow gained 0.26%, while the tech-heavy Nasdaq added 0.3%.
Prior to today's trading, shares of the customer-management software developer had lost 1.15% over the past month. This has lagged the Computer and Technology sector's gain of 3.73% and the S&P 500's gain of 3.08% in that time.
CRM will be looking to display strength as it nears its next earnings release. On that day, CRM is projected to report earnings of $0.61 per share, which would represent a year-over-year decline of 17.57%. Our most recent consensus estimate is calling for quarterly revenue of $3.68 billion, up 22.55% from the year-ago period.
CRM's full-year Zacks Consensus Estimates are calling for earnings of $2.75 per share and revenue of $16.02 billion. These results would represent year-over-year changes of 0% and +20.64%, respectively.
Any recent changes to analyst estimates for CRM should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. CRM is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note CRM's current valuation metrics, including its Forward P/E ratio of 58.12. This valuation marks a premium compared to its industry's average Forward P/E of 31.45.
Investors should also note that CRM has a PEG ratio of 2.54 right now. 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 2.22 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 12, putting it in the top 5% 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.
To follow CRM in the coming trading sessions, be sure to utilize Zacks.com.