Salesforce.com (CRM - Free Report) closed at $142.85 in the latest trading session, marking a -1.96% move from the prior day. This change was narrower than the S&P 500's daily loss of 2.98%. Elsewhere, the Dow lost 2.9%, while the tech-heavy Nasdaq lost 3.47%.
Coming into today, shares of the customer-management software developer had lost 6.36% in the past month. In that same time, the Computer and Technology sector lost 0.39%, while the S&P 500 lost 1.28%.
Wall Street will be looking for positivity from CRM as it approaches its next earnings report date. This is expected to be August 22, 2019. 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.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.65 per share and revenue of $16.56 billion, which would represent changes of -3.64% and +24.66%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for CRM. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. 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 55.07. Its industry sports an average Forward P/E of 27.77, so we one might conclude that CRM is trading at a premium comparatively.
Meanwhile, CRM's PEG ratio is currently 2.54. 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. 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 group has a Zacks Industry Rank of 74, putting it in the top 29% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.