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Salesforce.com (CRM) Stock Sinks As Market Gains: What You Should Know

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Salesforce.com (CRM - Free Report) closed the most recent trading day at $156.29, moving -0.89% from the previous trading session. This change lagged the S&P 500's 0.69% gain on the day. Elsewhere, the Dow gained 0.65%, while the tech-heavy Nasdaq added 0.58%.

Coming into today, shares of the customer-management software developer had gained 3.37% in the past month. In that same time, the Computer and Technology sector gained 2.27%, while the S&P 500 gained 1.36%.

Wall Street will be looking for positivity from CRM as it approaches its next earnings report date. In that report, analysts expect CRM to post earnings of $0.47 per share. This would mark a year-over-year decline of 33.8%. Our most recent consensus estimate is calling for quarterly revenue of $3.95 billion, up 20.37% from the year-ago period.

CRM's full-year Zacks Consensus Estimates are calling for earnings of $2.65 per share and revenue of $16.56 billion. These results would represent year-over-year changes of -3.64% and +24.66%, respectively.

Investors should also note any recent changes to analyst estimates for CRM. 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 company's business outlook.

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 0.75% higher. CRM is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that CRM has a Forward P/E ratio of 59.61 right now. Its industry sports an average Forward P/E of 29.61, so we one might conclude that CRM is trading at a premium comparatively.

Also, we should mention that CRM has a PEG ratio of 2.75. 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 Computer - Software industry currently had an average PEG ratio of 2.11 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 70, putting it in the top 28% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.


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